If You Lease a Car Can You Return It and What You Need to Know

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A close-up view of a 'Closed' sign on a door, displaying a return time.
Credit: pexels.com, A close-up view of a 'Closed' sign on a door, displaying a return time.

If you lease a car, you can return it at the end of the lease term, but there are some things to consider.

Typically, you'll have the option to return your leased car to the dealer, but you may also be able to negotiate a buyout or extension of the lease.

The lease agreement will outline the specifics of returning the car, including any fees or penalties for excessive wear and tear.

You can expect to pay a disposition fee, which can range from $200 to $400, for the dealer to handle the return process.

Lease Expiration and Return

You can return your leased car after making the final payment and settling any related fees. This is one of the most straightforward options for lessees.

A lessee has a few options after making the final payment to satisfy the car lease terms, which is usually 36 months. The leasing company will likely send reminders as your lease expiration date approaches.

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To return a leased car, you need to set up an appointment at a franchise dealership, gather the original lease paperwork and everything that came with the car, and check the odometer for mileage overage. Estimate the penalty for excess miles to avoid an unpleasant surprise.

The leasing company may reach out to you around 90 days before your lease period is up to schedule an inspection and determine whether there is excessive wear and tear or damage. This inspection may look for dings, dents, scrapes, or scratches on the exterior, stains, burns, tears, or rips on the interior, and other damage.

Typically, the return process begins around 90 days before your lease period is up. The inspector will take note of any issues that are excessive according to your lessor's standard for determining excess wear and use.

Here's a checklist of what you should do when returning a leased car:

  • Set up an appointment at a franchise dealership
  • Gather the original lease paperwork and everything that came with the car
  • Check the odometer for mileage overage
  • Clean the vehicle, inside and out

You can expect the dealership or leasing company to communicate with you around 90 days before your lease period is up to start preparing. Returning a leased car is relatively straightforward, but you'll want to plan ahead and make sure you comply with all the requirements stated in your lease.

How to Return a Leased Car

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Returning a leased car is a relatively straightforward process, but it's essential to plan ahead and follow the right steps to avoid any unpleasant surprises.

Most lease agreements require you to return the car at the end of the lease period, which is usually 36 months.

You can expect the leasing company to reach out to you around 90 days before your lease period is up to schedule an inspection and determine whether there is excessive wear and tear or damage that you'll have to cover.

The inspection will look for dings, dents, scrapes, or scratches on the exterior, stains, burns, tears, or rips on the interior, cracks or pitting in the windshield, sunroof, or other windows, tire wear, and missing or non-working equipment.

You should take photos and consider getting any minor issues fixed before the inspection to avoid charges for excess wear and tear.

To ensure a smooth return process, you should contact your leasing company to determine the location you should return your vehicle to, as some dealerships may require a lease return appointment.

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Here's a checklist of what you'll need to do before returning your leased car:

  • Set up an appointment to return the car at a franchise dealership.
  • Gather the original lease paperwork and everything that came with the car.
  • Check the odometer for mileage overage and estimate the penalty for excess miles.
  • Clean the vehicle, inside and out, to show that you've taken care of it.

After the inspection, you'll receive a condition report outlining the damages identified by the inspector and the costs associated with them. You can then contact your leasing company to schedule a return and collect a signed and dated return receipt from your dealer's representative.

Pre-Return Preparations

Before returning your leased car, it's essential to prepare it thoroughly. You should start by checking your lease paperwork and gathering all original documents, including the owner's manual and spare keys.

Typically, the return process begins around 90 days before your lease period is up, and the leasing company will reach out to you to schedule an inspection to assess your vehicle's condition. This inspection may look for excessive wear and tear, including dings, dents, scrapes, or scratches on the exterior, stains, burns, tears, or rips on the interior, and cracks or pitting in the windshield, sunroof, or other windows.

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To avoid unnecessary charges, make sure to clean your vehicle both inside and out. You can even opt to have it detailed to make a good impression. This may save you money on excess wear and use costs.

Confirm that you have all original items that came with the vehicle, such as spare keys, cargo covers, spare tires, floor mats, manuals, and any other detachable or removable features. Remove any personal items inside or on the vehicle, including toll passes, documentation in the glove box, and any stickers.

Here's a checklist of things to do before returning your leased car:

  • Check your lease paperwork and gather original documents
  • Clean your vehicle inside and out
  • Confirm you have all original items that came with the vehicle
  • Remove personal items inside or on the vehicle
  • Check with your leasing company prior to completing any repairs to ensure they meet requirements

By taking these steps, you'll be well-prepared for the return process and can avoid any potential issues or charges.

Turn-In and Inspection

You'll need to know your lease-end date, which can be found on your original contract and paperwork, or by contacting your originating dealer.

The leasing company will reach out to you to schedule a lease-return inspection, but if you haven't been contacted within 3 weeks of your end-of-lease date, you may need to call them.

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Perform your own look-see before the inspection, taking photos of any damage, stains, scratches, or issues, and consider getting them fixed or repaired to avoid disposition fees.

You'll be notified if any charges will be applied for "excess wear and tear" after your pre-return inspection is handed in, so make those fixes and contact your leasing company for another inspection.

Is Scheduling an End-of-Lease Inspection Required?

Scheduling an end-of-lease inspection is not always a requirement, but it's highly recommended. Most auto brands and car lease companies will require an inspection prior to lease-end.

Some dealerships may perform a quick inspection before shipping the vehicle off to the manufacturer, but this is not a guarantee. Returning your leased vehicle without an inspection is like buying a house without seeing the inside.

It's always in your best interest to conduct an inspection, which should be done at least 30 days before returning your vehicle. This allows enough time to get any necessary repairs done.

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Vehicle Turn-In

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To turn in your leased vehicle, you'll need to know your lease-end date, which can be found on your original contract and paperwork.

Contact your originating dealer if you're unsure or if your contract has gone missing - they can help you figure it out.

Scheduling a lease-return inspection is the next step, which your auto leasing company will usually reach out to you about, but if you haven't heard from them within 3 weeks of your end-of-lease date, you may need to call them.

Before the inspection, do a quick look-see yourself to catch any damage, stains, scratches, or issues, and take photos to document them - it could save you hundreds on disposition fees.

You'll receive a notification from your leasing company about any charges for "excess wear and tear" after submitting your pre-return inspection, so be sure to make any necessary repairs.

Contact your originating dealer to schedule a return, and if you've already paid for your last month, you can return the vehicle at any time.

Bring your leased vehicle into the dealership and collect a signed and dated return receipt from your dealer's rep - it's a good idea to take pictures of the vehicle, inside and out, too.

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Matthew McKenzie

Lead Writer

Matthew McKenzie is a seasoned writer with a passion for finance and technology. He has honed his skills in crafting engaging content that educates and informs readers on various topics related to the stock market. Matthew's expertise lies in breaking down complex concepts into easily digestible information, making him a sought-after writer in the finance niche.

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