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How to avoid extra costs at the end of your lease |
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Written by Dawn C.
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Monday, 21 August 2006 |
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$250 to dispose of your vehicle, $1000 for extra miles you put on the clock
and $200 to replace the light bulb and the worn tires. Lease agents
constantly nickel-and-dime consumers when their sublease runs out.
Here's a rundown of what can set in motion those fees, and various steps to take in
self-defense. Service Ads: Crafts
Disposition fee: leasing companies put the onus on you if you choose not to buy the
vehicle at the end of your lease. This fee is set as compensation for the
expenses of selling, or otherwise disposing of the vehicle. It typically
includes administrative charges; the dealer's price to prepare the car for
resale and any other penalties. Make certain this fee is stated distinctly in the
contract and is satisfactory by you before signing on the dotted underline. At
sublease-end, you are left in no disposal to bargain as the dealer can apply
your refundable security deposit toward this fee.
Extra mileage charges: Almost all leasing companies will likely charge a premium
for each mile over the standard upon mileage stated in your agreement. This
penalty can be as elevated as 25 cents per mile and can add up quickly. To
refrain from the risk of running thousands of dollars in excess mileage penalties
at the end of your sublet, always check the per mile charges in your
contract and be realistic about your mileage before you sign any contract.
If you think the limit is unrealistic given your commutation needs, then
negotiate with the wholesaler to get a higher-class mileage or contract for
other miles.
Excess tear-and-wear charges: Another possible cost at the end of the
lease is any incidental damage done to the car while in the lease. This is
said any excessive damage done to the normal tear and wear of the vehicle.
Notice the use of the terms deemed, excessive and normal. There is no
standard instructions to define what's excessive and normal and it's up to
the leasing associates to assess or deem the destruction and decide what
they are going to charge. This leaves you at the pity of unethical
leasing agents who set demanding tear-and-wear standards. Always make sure you read the sketch of these standards, understand them and agree to them.
If your leased vehicle is damaged previous to the end of the lease, you may
discover it cheaper to repair the damage yourself than pay the excessive charges
of the leasing agent. In the circumstance of a dispute upon the charges at the end
of your sublet, get an independent third party to do a experienced appraisal
detailing the amount required to service any damaged parts or the amount by
which tear-and-wear reduces the value of the vehicle. |
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Last Updated ( Monday, 11 September 2006 )
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