Getting rid of a leased car doesn’t have to be expensive, if you know what to watch out for. This information will help you negotiate the best deal at the end of your lease. It will also help you decide whether to keep the car and get out of the leasing cycle.
Every lease contract is different, it is important to read your contract and understand your obligations and rights before it’s time to end your lease.
Important End of Lease Terms
Excess Wear and Tear Charges: Most leases make you responsible for any damage to the vehicle. Some contracts list what is considered over normal wear and tear. Others give the lessor the right to charge for any damages that they determine are unreasonable. Of course, if you buy the car, you won’t have to pay these charges.
Excess Mileage Charges: Most leases have a limit on the number of miles you can drive. If you exceed the limit, you will be charged per mile, when you turn in the car. If you buy the car, you won’t have to pay these charges.
Disposition and Purchase Option Fees: Most leases require you to pay a fee to cover the cost of selling the car. This is called a “disposition fee.” If you decide to buy the vehicle, the disposition fee will be eliminated, but you may be charged a “purchase option fee” to prepare the paperwork.
Purchase Option: Most leases give you the option to buy the vehicle at the end of the lease for a price you agreed to when you signed the contract. This price is either listed in the contract or the contract specifies a method of determining how much they will charge you for the vehicle. Note: If you are thinking of buying the vehicle, check your contract as many leases require you to notify the lessor one month in advance.