When a car lease endsWhat happens when a car lease ends? I will shed some light on the subject but keep in mind that there are many variables involved on how the end of the lease will be handled. The original lease contract will provide details on what is expected at the end of the term.
As a former independent off lease inspector for several large leasing companies I have had the insight of seeing hundreds of leases through their final days. My function was to inspect the vehicle to give both the customer and the company some current information on the true condition of the vehicle. I would supply pictures to the company of any physical damage to the vehicle along with an odometer statement. Each lease company and their participating dealerships handle things differently. One thing that I have learned is that if you're getting into another lease from the same company and/or dealership they are more likely to show leniency and may waive some penalties and fees to continue your customer loyalty.
3 Things a lease company looks for
There are some standard items that most lease companies pay a great deal of attention to. One of these things is the actual mileage that was put on the vehicle during the term. Most contracts that I have seen stipulate a mileage limit. When customers go over this they are charged a fee per mile or hundred miles. These charges can add up quickly and have become another profit center for the lease generator. Do not be afraid of this because often the overage charges can be negotiated if another lease is to be opened. Another big sticking point when a car lease ends is the physical condition of the vehicle. Most contracts stipulate that normal wear and tear is acceptable.
But in the real world sometimes vehicles will experience accidents, vandalism and overall damage that may be considered more than normal wear and tear. Most lease companies will perform a final inspection and provide the lease holder with a report. The third item that many companies look for at the end of the car lease is the condition of the tires. One of the most common lease terms would be a three-year 36,000 mile lease. If the vehicle still has the original equipment tires chances are they are very close to the end of their life. Most contracts include information about the condition of the tires when the car lease ends. The companies that I dealt with required 4/32 of tread to be remaining on the tires.
When a car lease ends badlyThe reason for this is that leasing cars is a profitable business. They would like to retain the customer and continually put them in new vehicles every three years. Some of the biggest horror stories that I have heard over the years have been when a customer severs all ties between the dealership and the lease company and tries to walk away. In my opinion this is viewed by the lease company as a customer has already been lost.
In this situation they are most motivated to follow the contract to the letter and receive every penny they can to restore any damage to the vehicle.Car lease contracts can be extremely long and hard to read. Again in my opinion the most important information is about what happens when the car lease ends. People entering a new lease should take some time to study the document. You can ask for copies and take them home and read them from a comfortable chair or have your lawyer review them before signing.
People I know have had troubles with terminating a lease contract. In fact here is one story about a new car lease with a bad ending. Search through this sites content and the Net at the same time.  Custom Search The homepage is up next and provides a good rundown of what other kinds of information is available on this automotive website. You can also find lots of answers to car questions |