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.
Some dealerships just say thank you very much and let the lease company handle the post lease inspection including contact, negotiation and billing for required repairs to the lease vehicle.
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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» left by Billy from Miami,Florida (1 year 338 days ago.)
That's not all true, Many Leasing firms Charge a wholesale rate not Full Price.
Also, if you go out and repair the vehicle yourself if the repair is substandard then you will be billed for substandard repairs.The best thing to do is get the inspection and then take your options.Alot of Body shops will scare the consumer that they should repair the damage before the inspection,that's B.S...I have seen alot of substandard work and have had to sadly bill the lease,and then the leasee would have to go back to the Poor Quality Body Shop and demand their money back, or re-do the job.And of course, No body shop would do that.I have been an Off Lease Auto Inspector over 7 years working for many leasing companies,and 4 different Inspection Firms.The bottom line is wait, and take your options.The Off-Lease market has changed alot, and yes Leasing Companies are concerned over their investment I'm sure we all would be.The Auto Leasing Companies took Million Dollar Loses between 1999-2001 and they don't want too see that again.That's why there serious when it comes to excessive wear n tear. Respond to this comment
» left by Mark Gittelman(6,982) Mark Gittelman (1 year 337 days ago.)
Thanks billy for your response. As far as the substandard body work I do see your point and all the readers can see your advice on the topic. I as i wrote the article I am living in a town that has 3 award winning body shops that over deliver in high quality repairs in there competition with each other. So I guess I have a higher opinion of body shops then you do. But other areas may not be as fortunate to have quality body shops. I guess I'm just spoiled but I do appreciate your expertise and comments from you. Respond to this comment
I just turned in a leased Chrysler CrossFire that originally came with GoodYear tires. Over my lease term in purchased different brand tires. When I tured my car in they said the tires are mismatched because I did not replace them with Goodyear which is what they came with, they admit the tread is fine. Can they really charge me for 4 brand new tires even though the tires on there now are fine just because the brand is different, that doesnt seem right?
No this does not seem right to me either. If the tires you put on are the same exact size and (very important) speed rating (example: H rated) Then this should be okay. You will have to check your original lease contract to see if it mentions rules about tire changes. The brand name should not have an impact in my opinion. Goodyears are okay but what if you went with Michelin tires (better) would you be penalized?
We had the inspection and all was well. In between then and now someone backed into my car. Should I fix it on my own or return it and see what they charge me? VW
My Chrysler lease is nearly up. We are looking at GM products now. Can I turn in my Chrysler leased car at a GM dealer or do I have to turn it in at Chrysler and have no trade of any kind at GM?
If your vehicle was leased through a chrysler program and not an aftermarket program like first union then I believe you have to return it to a chrysler dealer. Respond to this comment
mark, i'am ready to turn my leased auto ,but don't have all the money i owe for excess mileage ,will the lease company accept partial payments to settle after the car has been turned in. bob from massachusetts 3-14-09
Bob: This will vary with each leasing company so it's hard to answer. You will also find that the lease co will negotiate with you if you plan to roll into another lease agreement with the same company. If this is the case the company may wave all penalties and fee's all together.
Bob, my toyota lease is up in May. I have since relocated. I would like to purchase the vehicle but at a cheaper price. Would a Toyota dealership negociate the payoff price? Thanks, Geno from NY.
If the lease was originated by Toyota the answer is yes. But in Many cases the dealership will use aftermarket leases such as GE capital or many other brands. If so you will have to contact the lease holder for negotiations. Check your contract for the details. Respond to this comment
Just wanted to add that right now buying out a lease vehicle gives the edge to the customer. The leasing companies outlook on selling these vehicles after turn in is grim. Firm negotiations could yield good values right now. Respond to this comment
My experience is if the window tint is in very good condition they will usually let it slide. But if it needs to be removed and the glass cleaned it may be considered a chargeable item. Respond to this comment
I 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.
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.
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.
» left by Worry Wart from Ohio (38 days 16 hours ago.)
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.
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