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We found some great car lease advice on a current article found on thenest.com titled “What Do You
Pay for Wear & Tear on a Leased Car?.”Leasing can be an effective way to keep a newer vehicle in good condition for a few years. When you
turn in your car or truck, the dealership will inspect it. During this inspection, the dealership
representative will evaluate the vehicle for the amount of wear and tear that you have put on it. You
may be charged fees if the wear and tear is in excess of reasonable use.

Types of Leases

The amount you pay for wear and tear damages may be different based on the type of lease that you
have. An open-end lease is one in which you are required to pay the difference between the residual
value of the vehicle and its realized value when you turn in the vehicle. The residual value of the vehicle
is the purchase price after the lease term. You may receive a refund if the realized value is larger than
the residual value if you have complied with mileage and the wear and tear standards. Closed-ended
leases are more common than open-ended leases and require you to pay off the actual amount of any
damages that exceed normal wear and tear at the time of turn-in.

Normal Wear and Tear

Most lease contracts allow you to incur normal wear and tear without having to pay an additional
charge. These types of damages include the replacement of small items, such as tires, light bulbs and
brakes. Your lease contract may designate that you are required to make these improvements as part of
regular maintenance. Damages that are minor in nature or have a small diameter of damage, such as
less than 1/2 inch, are also usually considered normal wear and tear.

Excess Wear and Tear

Most leases charge you for any damages made to the vehicle. You may be held liable for paying the
amount necessary to repair or replace the vehicle, whichever is cheaper. The terms of your contract
might specifically state what the company considers to be excess wear and tear while other
companies might charge for a subjective viewpoint of what is not reasonable wear and tear.
Excess wear and tear includes damages such as scratches, a bad color match, bumper damage, sanding
marks and body damage more than 2 inches in diameter. Cracks, cuts, tears or stains that are more than
1/2 inch may be considered excess wear and tear. Four or more dents or scratches that break the paint
are also often considered excess wear and tear. The average vehicle owner incurs $1,800 in excess wear
and tear damages. However, your contract can stipulate that excess wear and tear charges be limited to
the amount of three monthly lease payments.

Ways to Save on Charges

If you have not yet leased a vehicle, get as much information as possible and have it included in the
lease agreement so that you know exactly what types of damages may result in extra charges. Consider
purchasing wear and tear insurance when you lease the vehicle to help offset the costs.
Regularly maintaining the vehicle can help you avoid some unnecessary fees. Have the vehicle detailed
and inspected prior to the dealership inspection of the vehicle. If a dealership representative says
there is damage, ask a representative from the dealership for a written estimate of the damages and
request estimates from other repair shops.
Your contract may indicate that the dealership must have the repairs completed. If it does, ask the
dealership to seek a second estimate before paying for these damages. If the dealership and your
contract allow you to make these repairs yourself, keep the car repair receipts to prove that you paid for
these services.