What You Need to Know
- Some minor wear and tear is expected on leases.
- However, you’ll be charged for excessive damage such as deep scratches, large dents, windshield cracks, or worn tires.
- Fix major damage before inspection and thoroughly clean the car to avoid hefty charges.
- Report accidents immediately, use the automaker’s parts for repairs, and avoid rolling charges into a new lease.
Before you lease a car, you need to thoroughly read and understand your contract, especially if you know the car could incur damage. Maybe you live in the city where parking is tight, and door dings are an unfortunate but frequent occurrence. Or, maybe your parallel parking isn’t the most finessed, and you tend to scuff up wheels.
Some wear and tear is expected, and most leasing companies anticipate small scratches or blemishes. However, anything beyond these minor issues will likely lead to additional charges. It’s essential to understand the terms you’re agreeing to.
As with a car you own, significant damage to a leased vehicle reported to your insurance company can also lead to higher premiums. Before signing your lease agreement, review the terms and ask what explicitly qualifies as normal wear and tear. We’ve outlined some common damages that you will be responsible for repairing. Address any excessive damage as your return date approaches. This proactive action will help the lease-end process run more smoothly.
- Leased Car Damage You’re Responsible For
- Preparing for the End of Your Lease
- What to Do if You Damage a Leased Car
Leased Car Damage You’re Responsible For
Excessive damage is the lessee’s responsibility. As outlined in your lease agreement, you’re liable for major repair costs. Dents or scratches usually incur charges if they are larger than a standard credit card. Windshield cracks and scraped bumpers also fall outside the “wear-and-tear” umbrella. Exact amounts will vary.
Fix problems as they happen during the lease and avoid a big lump-sum hit to your wallet when you turn in the car. Here are some common repairs to consider ahead of time, depending on the type of damage.
- Tires. Regularly inspect the tires. If less than an eighth of an inch of tread remains, you’re better off replacing the tires before turning in the vehicle. The same is true if you have mismatched tires with one brand in the back and another in front, for example, which can be a sign that you haven’t been rotating the tires regularly. Tires are a feature the lease inspector will always notice. You’re better off paying for new rubber than accepting the automaker’s tire-replacement charges.
- Bumpers. Suppose you scrape the bumper to the point where paint has come off, or another car dents it. In many cases, you’re better off taking your car to a local body shop and paying for repairs before the lease ends. Bumpers are another common area where inspectors always look for damage. Your cost to fix damage before turning in the vehicle will usually be lower than what the automaker charges once your time is up.
- Glass. No, you won’t get away with a cracked windshield. You’re unlikely to get away with any other cracked or chipped piece of glass, either. Get it fixed before the inspector notices. Some minor chips and cracks can be repaired without a complete windshield replacement. Otherwise, you’ll be on the hook for a replacement at a cost the automaker decides upon. Vehicles with advanced driver-assistance systems must have windshields replaced with original factory glass. You can also file a claim through your insurance, but paying for it out of pocket may be more affordable in the long run.
- Dents. Most dents don’t enter into the usual definition of excess wear and tear. The general rule is that you don’t have to worry if they’re smaller than a quarter and the paint is still intact. Otherwise, call a paintless dent repair company. They’re often mobile services and usually remove dents from doors and body panels for much less than the automaker would charge. Get multiple estimates from reputable body shops. Then, evaluate your options once you have an accurate idea of how much the repair should cost. Consider how much the dealer may charge, and decide whether you’d rather pay a body shop or pay at the end of your lease.
- Scratches and curbed wheels. Just as you wouldn’t expect a used car to be showroom-fresh, automakers expect you to get a dent here and a scratch there when you’re leasing a vehicle. The rule of thumb on scratches is simple: If you can cover it with a standard credit card, you probably won’t be charged. Some leases specify limits, such as one dent smaller than a credit card per panel. The threshold for curbed wheels is smaller, but automakers will still allow minor damage before billing you. We’d recommend taking care of apparent damage, significant scratches, and excessive curb rash before meeting with an inspector.
Preparing for the End of Your Lease
You will want to start preparing for the end of your lease at least a couple of months before it is up. Most leasing companies offer a free pre-inspection during this time frame, so you should always take advantage of that. Based on the inspection, you will want to complete any necessary repairs and gather receipts.
In the final days of your lease, clean your car before returning it. Inspectors will notice stains on the seats or carpets. While small spots might be okay, clean the interior as best as possible to avoid charges. If you removed the floor mats at the beginning of the lease and used a less expensive set when you drove the car, reinstall the original mats before the inspection.
MORE: Exterior Car Detailing: 14 Steps to Clean Your Car Like a Pro
What to Do if You Damage a Leased Car
You must disclose any accidents on a leased vehicle to the dealer or leasing company. They may require you to use a specific body shop for the repairs, so you must coordinate with your insurance company and make the appropriate arrangements. Typically, leases require that repairs use the automaker’s original parts. If your insurance company will only pay for cheaper third-party parts, the captive leasing company (Ford Credit, GM Financial, Toyota Financial Services, etc.) may allow you to finance the cost difference.
Once the car is restored, you should be permitted to return the vehicle at the end of the lease agreement.
In the case of other damages, don’t panic if you have a bill when it’s time to turn in your car. However, avoid any temptation to roll any end-of-lease damage costs or penalties into your next vehicle at the dealership.
If the dealer offers it to you, that tactic may not make the most financial sense. Doing so puts you underwater on a new auto loan. You’ll be paying interest on damage or wear charges for a car you’re no longer driving. If you’re getting another leased car, your monthly payment will increase, which will spoil one of the leasing benefits.
With conscientious planning, you should be able to complete any necessary repairs and have a smooth end-of-lease process.
Editor’s Note: We have updated this article since its initial publication. Doug DeMuro contributed to the report.
