How To Return a Leased Vehicle

Leasing a vehicle is much cheaper than purchasing one. However, with a leased vehicle, you don't own the car. Thus, you have to return the vehicle once the lease term ends. Although monthly lease payments are inexpensive, some people end up owing their leasing company hundreds or thousands of dollars because they don't understand or don't follow the leasing agreement. However, there are ways to keep the cost to a minimum.

Instructions

1. Fix the vehicle. Lease agreements require the users to return leased vehicles in good condition. Therefore, you'll have to repair any dents or scratches before turning in the car, and you'll need to have the vehicle detailed.

2. Bring the leased vehicle back to the dealership. Ideally, you should return the vehicle to the original dealership, but this isn't a requirement. If you've moved to a different area, contact the original dealership and ask about a return location.

3. Provide the dealership with a disposition fee. After returning a leased vechicle, dealerships generally sell or auction off the vehicle. In turn, they require car leasers to pay a disposition fee (about $400), which covers the vehicle inspection, transportation costs, storage fees, auction fees and administrative fees.

4. Submit your mileage fee. Dealerships allow leased vehicles to accrue between 12,000 and 15,000 miles a year. Exceeding the allotted mileage results in a fee of approximately $.25 per mile.

5. If you are returning your leased vehicle before the contract has ended, you will be required to pay an early termination fee of approximately $350 and the remaining balance on your leased vehicle, which can amount to thousands of dollars.

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Resources

• Read this Article in Spanish
• Keys to Vehicle Leasing