How To Avoid Car Leasing Charges

How To Avoid Car Leasing Charges

If you intend to go for a Car Leasing option, you may have to pay certain additional charges. Here you will find details of few of such charges and the tactic to stay away from these.

Excess Mileage Charges

How To Avoid Car Leasing Charges
How To Avoid Car Leasing Charges

The surplus mileage charges are applicable to every mile in your Car beyond a preset boundary as per your formal documented agreement. This boundary is generally between ten thousand to fifteen thousand miles annually. Ideally you can stay away from the payment of surplus mileage by sparing some time to check your anticipated driving. This must include weekend and the leave. You must determine this prior to signing the lease agreement. Normally, it is cheaper than to make payment for additional mile beyond the contractual limit.

Wear and Tear Charges

Surplus charges for corrosion recompense the lesserfor Car repairs further than the standard amount over the time span of your Car driving. The standard amount of corrosion must be given clearly in the lease agreement.

You need to do some study prior to signing the lease to make it certain that this is a more rational explanation in comparison to other leases. If the explanation is not clear enough or rigid, then find some other lesser.

Follow the Manufacturer’s Maintenance Schedule

Avoid Car Leasing Charges
How To Avoid Car Leasing Charges

The ideal method to stay away from the surplus repairing costs is to strictly go in line with maintenance timetable suggested by the manufacturer, so that you can mend any issue with Car instantly. You must also clean and rinse the leased Car on regular basis. Besides that take care of the inside of the Car and keep it spotless. It is very important, because at the time of agreement Car condition and its interior will also be taken into consideration.

In case of surplus repair charges, you are liable to pay costs to the lesser because of decrease in outstanding amount of Car. Generally the surplus repair charges are restricted to the amount of one quarter of a year value of lease repayment every month. On the contrary, if you own an open-ended lease, you may have to make extra payment. You better go for a closed lease.

Disposition Fee

Quite often, you have to make payment of disposition charges, if you do not purchase the Car at the ending of lease period. You must therefore, check carefully that your lease contract do not have any such disposition fees prior to signing it.

Which type of return charges do you charge for your lease Car?

There are several categories that your return fees may fall under. We’ve listed them below to help you remember:

Additional mileage charges

You will agree to an annual mileage limit at the beginning of your lease. The higher the limit, the more your monthly payments will increase. This is because the Car‘s value decreases with each mile. To regain some of the lost value, you will have to pay an extra mileage charge if your limit is exceeded. It’s tempting to reduce your monthly payment by reducing your annual mileage. However, you will end up spending more at the end of your lease. Brokers can help you find a high-mileage lease.

Finance companies may charge an extra mile at a different rate. Some people pay as little as 3p per mile, while others can charge up to 70p. Although it might not seem like much, if you travel 1000 miles in a year at 70p per mile, that’s PS2100 on a standard 3-year lease. It would have been more cost-effective to pay a little more each month for a flexible mileage limit.

Service with the wrong dealer (or none at all)

Your Car‘s predicted value is also dependent on its complete manufacturer service history. It will be clear to you whether your Car must be serviced regularly by a franchised dealer. Your Leasing company will not be happy if you attempt to service your Car at an independent garage or fail to service it at all.

Servicing your leasing car will ensure it is in top condition for the road. It also helps to extend its life and increase its value. Your Leasing company will ask that you visit the manufacturer to perform the best maintenance.

If you find yourself staring at the prices for Car services and thinking, “Wow, that’s expensive!” It’s half the cost at his garage so I’ll take it to my mate.”Stop right there. This saved money will soon be forgotten when you are hit with the lease Car return fee for poor servicing.

You’ll get your scheduled servicing covered if you sign up for a car maintenance package. It’s worth looking at whether the package for car leasing maintenance is worthwhile.

Check out our posts about the different types of Car services, the frequency you should service your Car and the average cost of Car service.

More than wear and tear

Leasing brokers are likely to ignore normal wear and tear. However, it is important to understand what wear and tear means. Your broker will often have guidelines based on the BVRLA fair use and tear guidelines.

Over the years, your Car will experience minor scratches, scuffs and chips. Most damage is minimal and consistent with normal daily use. You can expect to spend a lot of money if the damage is consistent with continuous harsh treatment.

Small scratches on the alloy wheels or tiny chips in the windscreen, which don’t interfere with the driver’s view, are often brushed to one side. If the body has become corroded, and scratches in the paintwork have gone through to the metal, you may have problems.

For peace of mind, it’s better to have minor scratches and scuffs fixed than to pay more for them. While car scratch repairs cost can be annoying, it is not as bad as a large return fee when you are returning a lease vehicle. Ensure that you keep up with your car maintenance checklist throughout your lease. Everything will be fine when you return your vehicle.

Repairs that are not in good standing

These repairs should not be attempted by you!

Even if your Car has had repairs, it doesn’t mean they were done professionally. Your Leasing company may add an additional charge if you did the repairs yourself or a friend gave you their rates. The repairs will cost you twice.

How To Avoid Car Leasing Charges
How To Avoid Car Leasing Charges

Poor maintenance

It’s not a good idea to wait for your Car service in order to complete all maintenance tasks in one go. Modern cars have all kinds of technology that allows them to communicate with you when it is needed. Your dashboard warning lights will alert you if there are any problems with your lights, fluids, fuel, or other aspects.

You might feel the urge not to pay attention to these lights as you get closer to the end your lease. If the Leasing company arrives at your Car with your dashboard looking like a string or fairy lights, they will charge you.

Consider the cost and ease of topping up your windshield washer fluid, versus what the broker will charge for it. You’ll regret it when you get your final bill.

It’s a mess!

After polishing scratched alloys and removing bird droppings from the car, retouching paintwork and appeasing any warning lights that have appeared on your dashboard, you don’t want your Car to be a mess inside. You have to get rid of pet hair, crumbs from the kids’ biscuits, and last Friday’s wrapper for fish supper.

Expect to pay a lot if your Car is dirty, stained, or obnoxious. A Car that has sticky spots on its seats and a dog smell is not something anyone would want to own.

We are here to help you with a variety of posts on how do I wash my car efficiently for returning it! These are some guidelines for the main areas.

lease car return charges leaving it a mess
How To Avoid Car Leasing Charges

How can I avoid paying return charges for my lease Car?

By being proactive during your lease period and at the end of the contract, you can avoid paying lease Car return fees.

Rejecting a car that you have received with legitimate faults will exempt you from Leasing Car return fees, provided you submit your rejection claim within a specified window.

Throughout the Lease

You can avoid costly returns by being proactive from the beginning of your lease. These are some tips to help you stay on top of things.

  • Regular cleaning of the exterior and interior (every two weeks or a month) is recommended. The area where you live will determine the frequency of cleaning. You will need to clean your home more often if you live near salty waters.
  • Regular service at the right dealership is a must.
  • Alert others immediately if you see them. To avoid any further problems or panics, keep your fluid levels up to date and filters clean.
  • Keep to your mileage limits or talk to your broker about how you can increase your mileage. Leasing companies may increase your monthly payments to cover a higher mileage limit.
  • Get repairs done as quickly as possible by professionals. Don’t attempt to fix your Car yourself if you aren’t qualified. You are technically responsible for your Car‘s care. Make sure to have any repairs completed promptly by a garage that is approved.

The End of the Lease

These last few weeks are crucial because you have the chance to spot issues that you missed earlier in your lease.

  • The fair wear & tear guidelines will help you to identify the areas that should be avoided in order to avoid end-of lease charges. If you don’t have one, ask your Leasing company to get one.
  • Your broker will notify you as the end of your contract approaches. You should begin to inspect your vehicle for any issues around the 10-12 week mark. You will have plenty of time to arrange repairs if you require them.
  • To assess damage, wash and dry your Car thoroughly.
  • Examine every panel of the bodywork for any scratches or scuffs. This includes the roof, bonnet, and doors.
  • Inspect the spare and tyres. For problems, inspect the trims of the wheels, tread, spokes and sidewalls. They must meet UK legal requirements.
  • For cracks or chips, inspect the lenses, lamps, windows, and mirrors.
  • Inspect the carpets and upholstery for stains, fraying, and other unpleasant odors.
  • All electronic devices in the Car should be inspected. All personal data should be removed from the Car. The next owner won’t have to keep your address on the sat-nav.
  • You must ensure that you have paid all speeding tickets received in your lease car.
  • Make sure you have all the necessary documents and equipment. A fully stamped service manual, valid MOT certificate, an operation manual, complete set of vehicle keys, spare key, locking wheel nuts, and your vehicle V5 documentation are all required.


what to do to avoid lease car return charges
How To Avoid Car Leasing Charges

How can I contest damage charges?

The Leasing company representative will conduct a quick inspection of the vehicle and ask for your signature to confirm that it is in good condition. You will need to confirm that there are no visible 10-inch scratches on the doors.

After they have picked up the vehicle, the proper assessment will be done. If you have additional return fees, you will be notified.

You can request an engineer who is qualified to review the evidence if you are not satisfied with the charges. The Leasing company and you will agree on the engineer. You’ll be exempt from all charges if they agree to it.