Reducing End Costs of Your Lease Articles | Automotive

Many consumers are surprised when they come to end of their lease to find they owe a considerable amount of added fees. Some of these various fees can be avoided if you are aware of them and how to avoid them.

Example:

Vehicle disposal: $250

Extra miles on the Vehicle: $1000

Replacement of parts-including Light bulb and Worn Tires: $200

The term “Nickel and Dimming It” takes a whole new light at the end of a consumers lease. Listed are the triggers for such bills and how to avoid them. If you are familiar with what you can be charged with you can take steps to prevent these charges from entering your bills.

The Extra Mileage Fees:

Many dealerships charge an extra fee for mileage over the contracted limit. The fees can exceed .25 cent per mile and while that sounds like it isn’t very much it can become a very high cost very quickly. To avoid these extra charges make sure you know the “per mile” charges and how many miles you have used in your mileage allowance. When you are looking for a dealership make sure you compare the “per mile” charges and know realistically how many miles you will use. If it is not enough it is best to not sign or re-negotiate you contract.

Disposition Fees:

Many dealers use this charge to compensate for disposing of or reselling your vehicle. There are many things included in the fees for this charge such as administrative fees, preparation for resale, or any penalties that may have been incurred. The fees will be added to the end of the lease charges so you should make sure you are getting the best deal or that you are ok with the amount before you sign the contract. The fees can be taken out of your security deposit if you do not pay them.

Wear- and -Tear Charges:

The length of a lease can vary and you may be contracted to a vehicle for the length of up to 36 months though it doesn’t seem like long it is a rather lengthy time. Consider all that can happen to the vehicle in this time. It may be more beneficial to you to review this part of the contract well before signing any papers. The decisions of what are excessive and what is considered normal wear-and-tear is by the discretion of the dealers. Make sure you have read the fine print well and understand the fees of the agreement fully before signing anything. After all the agents are the only ones who can determine the official amount of wear-and-tear at the end of your lease.

Repairing the damage or wear-and-tear yourself may also be a better deal than leaving it up to the dealers to estimate. You can also have the vehicle assessed by a licensed professional to give you the estimate of the damage items and how much the wear-and-tear would reduce the price of the vehicle. This will give you a little added cushion going into the dealership at the end of your lease. Remember always take note and pay attention to the details to ensure you are not a victim of these common schemes.

Darren Williger is an over-caffeinated, non-smoking, car buying, low carbohydrate eating, winemaking enthusiast who writes for Cargoyle.com, MotorMaven.com, and MixtureCars.com.