That you can simply walk away from a car at the end of a lease is fairly common knowledge. However, there’s a bit more to it than that. Certain parameters must be met; otherwise you could be in line for some unexpected charges. Let’s take a look at how leasing a car works at the end of a lease to see what’s what.
Your Three Primary Options
As we said above, you can turn the car in and walk away from it. However, you can also buy it or you can lease another car. Some people choose to buy the car because it’s the safest used car deal they’ll ever get. After all, they know exactly how the car has been treated since it was new. They know its maintenance history, whether it’s been in any accidents and how well it drives too.
Another reason to buy the car at the end of the lease is you’ve gone over the mileage cap by a significant amount. Given most contracts call for up to 25 cents per mile for anything over the agreed upon mileage, this might make more sense. Ditto instances of excessive wear and tear. It could be cheaper to buy the car than pay to have those things fixed, especially since you’re already used to living with those flaws.
Some people choose to lease another car instead. Most car companies grant certain concessions if you lease another one of their products. This can include the waiving of lease termination fees, a less rigorous lease-end inspection and even a price discount on the next car. You’ll see here are lots of good reasons to lease another model of the same make when you understand how leasing a car works.
A Lesser-Known Option
With the permission of the leasing company, you can also sell the car to another person and pay the leasing company the residual value of the car. In fact, there is one circumstance under which you’d absolutely want to do this.
Before you return the car, use a value calculator like the one at Kelley Blue Book’s website to get an idea of the fair market value of the car. You can sell it to another private party and keep the difference if it’s worth more than the residual value. In other words, you could come out of your lease with a profit. To know more about what’s required to find a good reference and the best deals possible, visit this website.
What to Expect if You Turn it In
Whenever possible, it’s a good idea to return the car to the dealer from which you got it. They’ll be happy to work with you because they’re hoping to sell you another one. With this in mind, they might also be more lenient when conducting the lease end inspection.
To be on the safe side though, go over the car carefully to ensure it’s in the best possible condition before you turn it in. Wash it and get it vacuumed. Make sure all of the extra keys; the owner’s manual, floor mats, the spare tire and tools are there. You will be charged a fee if these items are missing. You also want to make sure the tires are of the same type that came on the car (e.g. run-flats if the car came with them).
The good news here is you do have a number of viable options at the end of a lease. With that said, it’s always a good idea to review those options before you sign the lease to make sure you’re getting into something with which you can be comfortable getting out.
Looking these things up after you’ve signed the lease could be too late.