Common Types of Lease-End Fees You'll Encounter
Leasing a car is a popular option for those who want to drive a new vehicle without the commitment of owning it. However, when the lease term comes to an end, there are often additional costs that can catch drivers off-guard. In this article, we'll explore the most common types of lease-end fees that you can expect to encounter.
Disposition Fee
One of the most common lease-end fees is the disposition fee. This fee is charged by the leasing company to cover the cost of inspecting the vehicle when you return it at the end of the lease term. The fee typically ranges from $300 to $500 and is non-negotiable.
Excess Mileage Fee
When a lease agreement is signed, the terms specify the number of miles that the driver can put on the car during the lease term. If the driver exceeds this mileage limit, they will be charged an excess mileage fee at the end of the lease term. The fee typically ranges from $0.10 to $0.25 per mile and can add up quickly if the driver has significantly exceeded the limit.
Excess Wear and Tear Fee
Leasing companies expect the cars to be returned in good condition, but normal wear and tear is expected. If there is excessive wear and tear on the car, the driver can expect to be charged an excess wear and tear fee at the end of the lease term. This fee can range from a few hundred dollars to several thousand, depending on the extent of the damage.
Early Termination Fee
Ending a lease term early can be expensive, and the driver can expect to be charged an early termination fee if they choose to do so. This fee is designed to cover the costs associated with ending the lease term early and can range from several hundred dollars to several thousand.
Disposition Fee Waiver
While the disposition fee is a non-negotiable fee that cannot be avoided in most cases, some leasing companies offer a disposition fee waiver. This waiver is usually offered as an incentive to lease another car from the same company, and it can be a great way to save money on the disposition fee.
Lease Extension Fee
If a driver wants to extend their lease term beyond the original term, they can do so by paying a lease extension fee. This fee is designed to cover the costs associated with extending the lease term, and it can range from a few hundred dollars to several thousand.
Late Payment Fee
Late payment fees are common with any type of loan or lease, and leasing a car is no exception. If a driver fails to make their lease payments on time, they can expect to be charged a late payment fee. This fee can range from a few dollars to several hundred, depending on the terms of the lease agreement.
Conclusion
Leasing a car can be a great way to drive a new vehicle without the commitment of ownership. However, it's important to be aware of the various fees that can be charged at the end of the lease term. By understanding these fees and taking steps to avoid them, drivers can save money and enjoy their leased vehicle to the fullest.