Understanding your end of lease options are very important. Typically, close-ended leases aren’t meant to build equity. However, we occasionally see some leases with equity, which can help you with your next purchase or lease.
Below are your options:
Walk away from the lease:
You’ll owe a disposition fee (typically $300 - $400), mileage charges (if you exceeded the contracted amount), and any excess wear and tear charges. Typically, the leasing company sends your vehicle to auction. Some leasing companies will waive the disposition fee and a portion of any excess wear and tear charges when you lease from them again.
Trade the vehicle in:
You can trade it in anywhere for any make and model you wish, you are not tied to the dealer you leased from. By trading in, you avoid the disposition fee, mileage charges, and excess wear and tear.
Purchase the vehicle:
You have the first right of refusal to purchase your leased vehicle for the residual value (stated on your original lease contract). In addition to your residual value, you’ll pay state sales tax and the acquisition fee ($395 - $895).
Please complete the below, so that we can understand your specific options and what’s best for your situation.