When a buyer first signs up for a vehicle lease agreement, they are agreeing to make regular payments that will be followed by planned schedule maintenance keeping the vehicle for a set duration of time. After the set term, it’s time for the lease to come to an end.
One of the benefits of getting into this kind of contract is it offers flexibility at the end of the term. The lessee has an option to buy out the current lease or get another vehicle, from the same brand—an opportunity to try out something new. Ending a lease process can be confusing and potentially expensive. Here are a few tips on how to return a car at the end of a lease.
10 The Lease Inspection
So, what amounts to damage, and who gets to define it? A lease return typically begins 90 days before the end of the contract. It is during this time that the leaseholder can set up an appointment for an inspection. Damage that costs more than the amount set for refurbish is excessive wear and tear. A lease inspection is free for a leesse and usually conducted by an independent company hired by the manufacturer.
9 Preparing for a Lease Inspection
While you don’t have to spend a fortune cleaning the car, a good detailing job is a great idea and gives a good impression when you present the vehicle to an inspector. Having your vehicle inspected early has benefits; if the charges after the inspection seem reasonable, don’t set up a second chance inspection, pay, and save your time.
8 Picking a Dealership for the Return
For an easier time, return the vehicle to the same dealership where it was picked up. However, if you changed addresses or the dealership you picked your vehicle is closed, you’ll have to pick out another dealership for the return. Contact the Used-car manager and set up a lease return. If for any reason, you feel your lease won’t be welcome, move to a friendlier dealership.
7 Mileage Overage
To find out if you are over your mileage allowance the lease owner can divide the current mileage reading to the number of months they have had the vehicle and then multiply the result by the number of months stated on the lease to get an estimate of how many miles they will have at the end of the lease.
6 Excess Wear
In case the leaseholder purchased a Safe Lease during the leasing process, it’ll protect the vehicle up to $5,000 of the cost of wear and tear, including dents, worn tires, wheel damage, and scratches. With the Safe Lease, the lessee doesn’t need to get damages repaired below the $5,000 limit.
5 Lateness Charge
It's important to have the vehicle prepared for inspection, inspected, and returned in time before the set date. Last-minute rushes often end up in more charges and delayed returns, which ultimately negatively affect your end of lease return charges.
4 Disposition Fees
However, this will vary from one dealership to the other. The lessee needs to determine the exact amount of the disposition fee during the lease agreement process to avoid last-minute surprises during the end of the lease process.
3 Your Next Lease Vehicle
For instance, if it costs $1500 to terminate a lease on a current vehicle after reductions and penalties, chances are, the dealer will roll over the same amount to the loan balance on the new vehicle. Meaning a lessee could end up paying $21,500 on a $20,000 car using 100 Percent financing. Ultimately, the vehicle owner will owe more for a new car than its actual price.
2 Defaulting on the lease
For instance, when an individual defaults on a lease, it will take a big hit on their credit score, and will eventually have their vehicle repoed. A lease default is equivalent to an auto loan default. Defaulting on a lease agreement is not advisable.
1 Options Ending your lease Early
The other option is trading in the vehicle for another. This option will get some fees waived, and others rolled over, making the overall price of the vehicle higher than the actual price. The last option its to get someone to take over your lease. You can find a workmate, friend or family member to assume the balance of the lease payment. A lessee could also contact businesses that specialize in looking for clients selling their leases.