What Happens At the End of the New Car Lease?
Posted: Tuesday, February 06, 2007
by Mark Gittelman
certifiedmastertech.com
This procedure leaves most people with a very bad taste in their mouth and usually prevents them from pursuing another lease vehicle.
On the day the new car lease is over it is time to take the lease vehicle back to the dealership. At this point you can either go into another new car lease or just walk away.
But in either case the lease vehicle will be inspected and this can get tricky. Each dealer handles the lease return differently.
You will also find that some dealerships will perform the off lease vehicle inspection and report to you directly.
What will they report on you ask. The new car lease contract stated you would be responsible for any damage to the vehicle that was considered above and beyond normal wear and tear.
This statement alone (that you signed off on) is very ambiguous and open to interpretation. What is normal wear and tear? Again this will be different between individual new car lease companies.
In my experience the lease vehicle provider will let you slide on a few minor nicks and scratches. But will charge you full retail price for repairs such as body damage and vandalism damage.
This is why you would want to prepare the lease vehicle for turn in before the off lease inspection occurs. You can fix the car cheaper on your own by shopping around for the best prices on the needed repairs.
When the new car lease company’s saw their customers upset to the point of refusing to lease a vehicle again they developed a strategy to assist on the new car lease turn in procedure.
Some company’s started providing a free inspection a month before the end of the new car lease contract. This helped prepare the consumer of what to expect.
This is where I came in. I worked for BMW North America as an independent contractor and performed these free inspections.
I was paid to go out to the lease vehicle and educate the consumer on what they would be charged for on turn in. What I found was most of these people never read their new car lease contract and where not ready for what was to come.
I would point out chargeable damage on the lease vehicle and provide helpful instructions for the repair of the deficiencies.
The new car lease company paid for this service in full.
As a Side note you have to remember that the leasing company has planed to resell the lease vehicle in question as a low mileage perfect looking vehicle. This sale brings top dollar resale values and is how the company makes multiple incomes from just one unit.
First they made money on the new car lease and the required repairs to return the car to top-notch condition. Then they make money on the resale of the vehicle. This double profit system is why they are in this business.
If bad things happened to this car while you owned it you will have to pay for the restoration of the unit.
As far as the BMW inspection procedure the company had me take digital pictures of the damage and also the current odometer reading and VIN plate to assure they where in the loop about the current condition of the lease vehicle.
I would also perform a complete mechanical inspection and forward the results to the company. The inspection was very thorough and often the vehicle would require tires to be replaced.
BMW required 4/32 of tread or more to be on the tires at the time of turn in. Tires can be expensive on some vehicles.
Most people did not like the inspection procedure even though I was there to help them. For many this was the first time they could actually see the costs involved with leasing the vehicle and having to return the car or truck for resale.
It is human nature to get attached to your car. And to have someone point out its deficencies can be unsettling. My advice is to obtain a written guideline for what is required at the end of the new car lease contract.
Take the required steps and repair the lease vehicle yourself as opposed to letting the company do it for top retail prices. You can save hundreds of dollars buy doing it yourself. I hope this sheds some light on the end of the new car lease turn in procedure and that your lease vehicles turn in goes smoothly.
Mark Gittelman is an ASE Certified Master Technician With more than 23 years experience in the automotive repair business. For more free automotive information visit his automotive web site Or to post a car question visit his online auto repair manuals page www.autofacts.org/autorepairmanuals.html
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More comments-HelloI have an '08 infiniti that I have to turn in April after a 2yr lease. Last year the car was hit from behind causing extensive damage. Geico is my insurance and I brought it to one of there certified shops. After 2 months and a $15k repair bill, the car was restored to showroom condition. I had infiniti check the repairs and they said they did a great job. However, when replacing the door well they had detach the vin plate which is in my glove box, will that be an issue? Also will they say "the car has been in an accident, and for that reason alone there is diminished value" therefore me owing? Thanks.
Can I used my car insurance to pay for the repairs...
People have their insurance company pay depending on the circumstances and the amount of repairs needed. Also the insurance company will have a say, and the State you live in my affect the process.
Ok. I just took a lease back to the dealer without getting it inspected. I dont think anyone looked at the car when I got a new lease either. My coworker say to be ready for a bill & I should have had the dealership sign off on it the day I got the new lease. What is your opinion? Should I go back to the dealership and request a inspection? I just took it back yesterday.Thanks.Since you rolled into a new lease you will find the inspection process a little more forgiving then if you turned it in and walked away. I would touch base with the dealer to confirm all is square though.
Help! I don't know what to do. My son has a 2006 Pontiac G6 on a lease which is up in 5 months. The car was just diagnosed with having a major engine problem (rods, bearings, or could need a new engine). No one can say for sure what is wrong until they pull the engine (for $600). I was told repairs could run a total of $2000 to $5000. The car is no longer under warranty. I was told if they are not happy with repairs done on our own, they can charge us to have it done over. Nothing has been done yet, and I don't know if I should try to trade it in for a new car (purchase this time) and let them estimate the fix and try to negotiate, or if we should have the GM shop fix it and then turn it in. I am really scared on this one. Any advice?Wow this is an unusual situation. Engines usually make it to the end of the lease even if they are not maintained well. If your maintenance is documented and up to date I might call GM customer service and ask for assistance. Of course telling them you are 5 months away from buying or leasing another GM car.
I have a 2007 Chrysler Sebring Sedan whose lease is up in February. It will have below 30,000 mileage when returned. I have about $11,400 owed according to the lease agreement. Is the dealership allowed to negotiate that price with me if I decided to keep the car and apply for a loan? Or is the price set in the lease concrete? I do not want to purchase another car through this dealership and currently am looking at other manufacturers.For the most part the buyout number agreed upon on lease inception is adhered to. But I have also heard stories of negotiating. So it doesn't hurt to try! But walking away might be a good choice if you are planning on changing dealerships and brands as you mentioned above.
Generally, very little goes on at the end of a car lease. If your car is under it's mileage and has no unusual damage, they will give you a clean inspection and tell you that you are free to turn the car into any dealer. Give them the car and the keys and you are done.Regards,Robmonthlycarlease
my lease is up in april and i still owe 4,447 and i am under my miles, but i have been late on payments. on my credit report, however, the finance company put pays as supposed to, and i am in good standing. will i have a problem when i try to trade my car for a different one, and will i need money down? also, because i was late will the finance company decide not to finance me again?It's hard to say or answer your questions (although good ones). The reason being is that the original leasing company and the finance operation have the option to handle your end of lease as they choose due to the circumstances. Each company has different rules and guidelines that they will follow. Although bringing money to the table is likely to play in your favor!
at turn-in, is the dealership required to point damages (if any) and/or mileage overage before lessor leaves the dealership. Especially if that lessor enters into a new lease with the same dealership. Please advise.Al : The Short answer is no and the original lease company can still send you a bill after they perform the final inspection. BUT Its really up to the lease Company. And if the lease company is the same one then often they will let small and medium stuff slide. The only problems that usually become an issue is frame damage and large collisions with improper repairs performed. You most likely have no worries.
I am driving a leased Audi owned by my ex-husband who is court ordered to make the lease payments until completion of the lease. I am 3K over on mileage and have very little damage (scrapped rims for instance) that I may be charged for. When I turn it in, do they collect payment at time of turn in or do they bill the owner? In a nutshell ... I don't want to have to pay for the damage or overage and I am not listed an owner on the car. Can I just drop it off with the keys and let them handle it with the cars owner?In most cases any charges that are due are billed at a later date. I have heard of any where from 30 days to 6 months down the road. The original lease contract should provide those details and a copy should be filed at the originating dealership. In your case it would seem that you turn in it in and let who signed the lease worry about the rest.
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