Leasing a vehicle has its advantages. Lessees often point to the excitement of getting a new vehicle every three years as one of the best reasons to lease. Monthly lease payments also tend to be less expensive than monthly financing payments, allowing people without much money to put toward a new vehicle the chance to drive a new car or truck anyway.
Figures support the idea that more and more drivers are giving leasing a try. According to Cox Automotive, a leading auto industry research company, new vehicle lease originations rose from just over one million in 2009 to roughly 4.5 million in 2016.
Come the end of a lease, drivers new to leasing may have lots of questions regarding returning their vehicles. The following are some common end-of-lease questions and their answers.
Can I return my car to any dealer?
Many lease agreements dictate that vehicles be returned to an authorized dealer of the make of the car. For example, drivers who lease a Hyundai are typically required to return their vehicles to a Hyundai dealership. Returning the vehicle to the dealership who initially leased you the vehicle may be the easiest way to go, especially if you want to buy the vehicle.
Should I bring my checkbook?
The initial lease agreement may list potential end-of-lease charges that could be applicable upon returning the vehicle, so drivers should be prepared to pay these fees upon turning the car in. These charges may pertain to excess wear and use, excess mileage and unpaid fees, such as parking violations or past late payments. The agreement also will note a disposition, or turn-in, fee if one applies. Can I turn the vehicle in early?
Hyundai Motor Finance notes that turning a vehicle in before a lease reaches full maturity could result in an early termination fee. Such charges may be significant, so drivers should consult their lease agreements to see if they are applicable.
What is the turn-in fee?
A turn-in fee is payable at the end of the lease if drivers do not purchase the vehicle. Sometimes referred to as the disposition fee, the turn-in fee may be waived if drivers lease or finance a new vehicle from the same manufacturer within a certain period of time after turning in their leased automobile. How much to buy my leased vehicle?
Some lessees may want to purchase their vehicles rather than turn them in at the end of the lease. But before doing so, they want to know how much it will cost to purchase the vehicle. This information should be included in the lease agreement and is often referred to as the “purchase option fee.” Drivers may have many questions before returning a leased vehicle and are urged to contact a dealership or lender to get answers before their lease reaches its maturity date.
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