From the operators of www.iBuyLessGas.com–dedicated to improving Gas Mileage with Ethos Gas Saver.
$250 to dispose of your vehicle, $1000 for additional miles you put on the clock
and $200 to replace the light bulb and the worn tires—lease agents
regularly nickel-and-dime consumers when their lease runs out.
Here’s a listing of what can generate those fees, and some steps to take in
self-defense.
Disposition fee: leasing companies charge you if you choose not to buy the
automobile at the end of your lease. This fee is set as reimbursement for the
expenses of selling, or otherwise disposing of the vehicle. It normally
includes administrative charges; the dealer’s cost to prepare the car for
resale and any other penalties. Make sure this fee is stated obviously in the
contract and is agreeable by you before signing on the dotted line. At
lease-end, you are left in no position to negotiate as the dealer can apply
your refundable security deposit towards this fee.
Surplus mileage charges: Almost all leasing companies will charge a premium
for each mile over the agreed upon mileage stated in your contract. This
penalty can be as high as 25 cents per mile and can add up fast. To
avoid the risk of running thousands of dollars in excess mileage penalties
at the end of your lease, always check the “per mile” charges in your
contract and be pragmatic about your mileage before you sign any contract.
If you think the limit is improbable given your commutation needs, then
negotiate with the dealer to get a higher mileage or contract for
additional miles.
Excess tear-and-wear charges: Another potential cost at the end of the
lease is any incidental damage done to the car during the lease. This is
deemed any excessive damage done in addition to the regular tear and wear of the vehicle.
Notice the use of the terms “deemed”, “excessive” and “normal”. There is no
standard formula to define what’s “excessive” and “normal” and it’s up to
the leasing company to gauge – or deem – the damage and determine what
they are going to charge. This leaves you at the mercy of devious
leasing agents who set stringent tear-and-wear standards. Make sure you
read the description of these standards, understand them and agree to them.
If your leased vehicle is damaged prior to the end of the lease, you may
find it less costly to repair the damage yourself than pay the excessive charges
of the leasing agent. In the event of a difference of opinion over the charges at the end
of your lease, get an independent third party to do a professional appraisal
detailing the amount required to repair any damaged parts or the amount by
which tear-and-wear reduces the value of the vehicle.
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