$275 to dispose of the vehicle, $1200 for excess mileage, and $225 for the wear and tear tires—vehicle leasing agents really seem to enjoy charging consumers extra money when the lease on their vehicle runs out.
Here’s a guide of what exactly can trigger such fees, and some tips on what you can do about them:
Disposition fee: This is a fee that a leasing company can charge you if you decide not to purchase the vehicle at the end of the lease. This is basically a “compensation” fee for costs of selling or disposing of the vehicle. This usually includes administrative charges, which is what the dealer pays to get the car prepared for resale. Make sure you read the contract carefully to find out what the fee is. At the end of the lease, you cannot negotiate such charges or get a refund.
Excess or extra mileage charges: Most leasing dealers charge premiums for every mile that you go over the limit that you agreed upon. This fee can be as much as .20 or so per mile, and can obviously add up very quickly. Once again, make sure you read the contract carefully to see what the mileage rules are. If you don’t think that you’ll be able to stay within the limit, then try to negotiate with the dealer.
Excess tearing and wearing charges: If you cause more tear and wear for the vehicle than what is considered “normal”, then you might have to pay for that as well. There is no specific formula to what is “normal”, so it’s usually up to the company to assess the wear and tear the damage so that they can determine what to charge you.
Needless to say, unscrupulous leasing dealers may be very picky. You need to carefully read the description of what the standards usually are, and then decide whether you’re going to agree to them or not. If your leased car has any damage prior to the end of the lease period, you may find it less costly to get the damage fixed yourself than to pay the fee to the lender. If there’s a dispute at the end of the lease, you should get an independent third party do a professional inspection.
14 Dec
