You can typically turn in your leased car at the end of the lease term, which is specified in your contract. However, you have several options, including an early return, extending the lease, or even buying the car outright. The most straightforward time is at the lease maturity date. About 60-90 days before this date, the leasing company will contact you to start the process. It's crucial to schedule a pre-inspection, usually conducted by a third-party like Inspector General, to identify any excess wear-and-tear charges you might be responsible for.
Many people are surprised to learn that returning a lease isn't just about dropping off the keys. You need to prepare. Gather all your original items: both sets of keys, the owner's manual, any factory floor mats, and the tire inflation kit if your car came with one. You'll also want to have your lease agreement and any maintenance records handy to prove you adhered to the required service schedule.
One of the most critical steps is understanding the disposition fee. This is a charge, often around $350 to $500, that covers the cost of inspecting and reselling the vehicle. It's usually outlined in your contract. You might be able to have this fee waived if you immediately lease or purchase another vehicle from the same brand.
Before you return the car, it's wise to check its current market value using resources like Kelley Blue Book or Edmunds. Sometimes, the residual value (the pre-determined buyout price in your contract) is lower than the car's actual worth. If that's the case, you could have positive lease equity. You might profit by buying the car and immediately selling it to a dealership or a private party.
Here is a comparison of common end-of-lease options and their typical timelines:
| Option | Recommended Timeline | Key Considerations | Potential Costs/Fees |
|---|
| Standard Return | 60-90 days before maturity | Schedule pre-inspection, review wear-and-tear guidelines. | Disposition fee ($350-$500), excess mileage fees, damage charges. |
| Lease Purchase | Anytime before maturity; finalize 30 days prior | Check car's market value vs. residual value for equity. | Purchase option fee (varies), plus sales tax on the residual value. |
| Lease Extension | Contact lessor 30-60 days before maturity | Usually offered as a month-to-month extension. | Monthly payment continues; may have a limit on extension length (e.g., 6 months). |
| Early Termination | Anytime, but can be costly | Penalties are highest in the first half of the lease term. | Early termination fee (often several thousand dollars), plus remaining payments. |
| Lease Transfer | Start process 2-3 months before desired transfer | Lessor must approve the new lessee; not all leases are transferable. | Lease transfer fee (e.g., $300-$500); you are typically released from liability. |
Finally, on the day of return, do a final walk-around with the dealership representative. Get a signed receipt acknowledging the return and the condition of the vehicle. This document is your proof of return and protects you from being billed for issues that occur after you've turned in the car.
