Lease Return
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Driver School Candidate
Joined: Jun 2007
Posts: 4
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From: CA
Lease Return
[/B]We leased our 2006 Lexus 330 from South Bay Lexus in Southern California. I was wondering how strict they are when finding dents and dings after the lease is up. I had a fence at home fall on my car and it left a pretty good dent on the side of my car. We don't know if it's better to have the dent fixed or have the Lexus dealer charge us for the repair when it's time to turn the car back in which will be Dec. of 2008. Does anyone know if they screw you over with repairs? Or will they overlook it?
Lexus Champion
Joined: Jan 2003
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From: NYC/ATL
I've leased with Chase Automotive, they allow up to 2500 in damage when you return the car, basically covers the cost of replacing a new front or rear bumper, never had to use it, be cautious of what lease company your with some will charge you for every little thing
Should be in your contract under wear and tear, usually the lease company allows for parking lot wear and tear but essentially they want the car back looking like new which means no dents
Should be in your contract under wear and tear, usually the lease company allows for parking lot wear and tear but essentially they want the car back looking like new which means no dents
Lexus Test Driver
Joined: Aug 2006
Posts: 1,491
Likes: 1
From: MD
I agree. Look at your contract. It should state the allowed dollar amount of damage at time of turn in.
Also, many people do not know that you don't HAVE to turn a car in at the end of the lease. Depending what it is worth vs your residual value, you can trade it in on your next car. The dealer actually buys the leased car instead of Lexus coming to pick it up. With a trade, there is no fines for extra miles, damage, etc.
So, if your payoff (residual) is less than the value of your leased car, sell it or trade it yourself. Don't give the equity to the leasing company!!
Also, many people do not know that you don't HAVE to turn a car in at the end of the lease. Depending what it is worth vs your residual value, you can trade it in on your next car. The dealer actually buys the leased car instead of Lexus coming to pick it up. With a trade, there is no fines for extra miles, damage, etc.
So, if your payoff (residual) is less than the value of your leased car, sell it or trade it yourself. Don't give the equity to the leasing company!!
Thread Starter
Driver School Candidate
Joined: Jun 2007
Posts: 4
Likes: 0
From: CA
Lease Return
I agree. Look at your contract. It should state the allowed dollar amount of damage at time of turn in.
Also, many people do not know that you don't HAVE to turn a car in at the end of the lease. Depending what it is worth vs your residual value, you can trade it in on your next car. The dealer actually buys the leased car instead of Lexus coming to pick it up. With a trade, there is no fines for extra miles, damage, etc.
So, if your payoff (residual) is less than the value of your leased car, sell it or trade it yourself. Don't give the equity to the leasing company!!
Also, many people do not know that you don't HAVE to turn a car in at the end of the lease. Depending what it is worth vs your residual value, you can trade it in on your next car. The dealer actually buys the leased car instead of Lexus coming to pick it up. With a trade, there is no fines for extra miles, damage, etc.
So, if your payoff (residual) is less than the value of your leased car, sell it or trade it yourself. Don't give the equity to the leasing company!!
Lexus Test Driver
Joined: Aug 2006
Posts: 1,491
Likes: 1
From: MD
How do I go about not returning the car and selling it myself? So do I purchase the car from Lexus at the time the lease is up and then sell it myself as a private owner? Also, how does the dent play into it? Will they charge me for the dent when the lease is up? Or should I have it fixed without their knowledge? The car is a 36,000 mile lease, but we will only have a little under 15,000 on it by the time the lease is up.
But, since you will have only 15K miles on your car and your lease is for 36K, there is a very good chance you will have some equity at the end of your lease. Call your leasing company and find out the procedure for selling the car yourself. Usually, you send them a check for the payoff and they send you the title. Just as any other auto loan.
Also, this can be done at anytime. You don't have to wait until the end of the lease. The only time you would have a penalty is if you turn the car in early to the leasing company. That will be considered an early lease termination...a repo. But, paying the lease off early, trading it in to a dealer, refinancing, etc. there is usually no penalty.
As to the dent and turning the car in with it still there, read your contract. I don't know how much damage is allowed in your lease, and how much the dent will cost to fix.
Thread Starter
Driver School Candidate
Joined: Jun 2007
Posts: 4
Likes: 0
From: CA
Depending on how bad the dent is, I would fix it regardless. No matter what you do in the end, it will cost you.
But, since you will have only 15K miles on your car and your lease is for 36K, there is a very good chance you will have some equity at the end of your lease. Call your leasing company and find out the procedure for selling the car yourself. Usually, you send them a check for the payoff and they send you the title. Just as any other auto loan.
Also, this can be done at anytime. You don't have to wait until the end of the lease. The only time you would have a penalty is if you turn the car in early to the leasing company. That will be considered an early lease termination...a repo. But, paying the lease off early, trading it in to a dealer, refinancing, etc. there is usually no penalty.
As to the dent and turning the car in with it still there, read your contract. I don't know how much damage is allowed in your lease, and how much the dent will cost to fix.
But, since you will have only 15K miles on your car and your lease is for 36K, there is a very good chance you will have some equity at the end of your lease. Call your leasing company and find out the procedure for selling the car yourself. Usually, you send them a check for the payoff and they send you the title. Just as any other auto loan.
Also, this can be done at anytime. You don't have to wait until the end of the lease. The only time you would have a penalty is if you turn the car in early to the leasing company. That will be considered an early lease termination...a repo. But, paying the lease off early, trading it in to a dealer, refinancing, etc. there is usually no penalty.
As to the dent and turning the car in with it still there, read your contract. I don't know how much damage is allowed in your lease, and how much the dent will cost to fix.
Thanks. But are they going to sell it to me for the lease-end value or are they going to attempt to make more money by selling it to me for more than that? For instance, if the calculated lease-end value is $25,000, then will they try to sell it to me for $27,000 or some amount more than 25k?
BTW, my contract makes me liable for ALL damage...
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Lexus Test Driver
Joined: Aug 2006
Posts: 1,491
Likes: 1
From: MD
Thanks. But are they going to sell it to me for the lease-end value or are they going to attempt to make more money by selling it to me for more than that? For instance, if the calculated lease-end value is $25,000, then will they try to sell it to me for $27,000 or some amount more than 25k?
BTW, my contract makes me liable for ALL damage...
BTW, my contract makes me liable for ALL damage...
As to trading in, don't tell the dealer what your residual is. Go in and ask them what they would give you for the car. If it is higher than your residual, then you have equity. If it is less, than you are burried and it is best to turn the car in at the end of the lease. But, if you have very low miles, you should have equity at the end of your lease.
So, if your residual is $25K and they offer $27K for your trade, the $2K is yours. AND, you won't have to pay any disposal fees if your lease has one in the contract IF you turn the car in.
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