When Your Car Lease Is Over, What Should You Do Next?

Should you buy your car at lease end, or start a new relationship with a new vehicle? In this time of higher prices and scarcity, it's important to think it through. Gannon Burgett|Car and DriverIt all happens so fast. One day, you're signing the paperwork on a lease, and in what seems like the next day, it's over. Before you turn your leased vehicle over, though, you'll want to figure out how you want to approach your post-lease life. Of course, you don't have to do this, but like most big life decisions, you're better off planning and exploring all your options well before your lease ends. All automaker leases charge a disposition fee upon termination, usually around $400. It's like the acquisition fee you paid at the start of the lease, only it's back to give you a goodbye kiss you can't refuse. Hopefully, you didn't do anything too illegal during your lease, since you'll be liable for any unpaid violations (parking, tolls, property taxes) associated with your state registration. See all results for used cars for sale near h3a 2n4 When returning your car to the same-brand dealership, you'll usually need to schedule a no-charge vehicle inspection beforehand. This is where an automaker can ding you for your dings and any modifications or improper maintenance you promised you wouldn't do during the lease. Most automakers allow a reasonable amount of wear and tear, so some scuffs on the wheels, a few light stains on the carpet, some paint scratches, and maybe a weird smell or two won't matter if they're easy to resolve. But for anything obvious and unsettling, you'll either be paying to fix them before you return the car, or you'll get a separate bill in the mail weeks later. To avoid any accidental charges, though, we recommend putting your car through the car wash and giving the interior a quick clean. What may look like a sizable scuff on the side of a dirty vehicle or the face of a display screen may end up buffing out entirely after a bit of cleaning. If you don't want to lease or buy another new car right away and can afford the outlay, consider buying out your lease. This figure is laid out in the contract you initially signed at the start of your lease. Note that going this route means you'll owe sales tax on the sum you're paying, and you'll also be responsible for some DMV fees. This is the most complex way to end a lease, but if successful, you'll have quit your car months or even years ahead of schedule. Third-party companies engage in lease transfers, in which they'll pay off your lease and assume your contract. This is not possible for every lease. Some lease contracts only permit lease transfers when the original lessee (you) remains on the lease, so you retain liability even if someone else has the car. See all results for used cars for sale near h3a 2n4 Others don't even permit lease transfers. Generally, swapping your lease is not a great idea unless you can't afford to make payments or your lease's early termination fee outweighs the risks involved in a lease transfer. This is the easiest option. Dealers and automakers love repeat customers who keep pushing play. Because of this, many brands often waive the disposition fee if you lease another vehicle with them. Even so, you can also simply turn in your current lease and head over to another dealership or automotive brand and negotiate a lease deal for one of their vehicles. Your accountant will surely note that leasing is a fool's errand, since the money you pay each month does not build personal equity in the vehicle. Yet, there are benefits to leasing. Depending on your priorities, leasing another car lets you get behind the wheel of a new vehicle at far lower monthly payments than taking on financing would. Likewise, depending on the terms of your lease, you very well may end up paying little in upkeep on a leased vehicle. Many automakers cover the cost of service for the first scheduled maintenance visit. While vehicles with more performance-focused tires may require you to burn greenbacks on a replacement set of rubber before the lease ends, those with more mundane all-seasons will likely last the entirety of the lease. Similarly, the new-vehicle warranty ought to remain active throughout most, if not the entirety, of the lease. This means the odds of you having to pay for items covered by the warranty are incredibly low. That is, unless your lease length or vehicle mileage exceeds the warranty limits, in which case you may end up footing the bill if something goes wrong toward the end of the lease. Clifford Atiyeh is an automotive industry analyst and a formally trained journalist with more than 20 years of published writing, photography, and video. He has reported for Car and Driver since 2012. Here's Exactly How Trading In a Car Works How to Negotiate an OTD Price and Dealer Fees 5 Things to Do Before You Go to the Dealership Trade in Your Car with a Loan for Cheaper Car How to Trade in Your Car for the Best

When Your Car Lease Is Over, What Should You Do Next?

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