Hidden Lease Costs

Most leases include 10,000 or 12,000 miles per year. If you drive 15,000 miles and your limit is 12,000, that is 9,000 excess miles over 3 years at $0.20/mile = $1,800 due at turn-in. You cannot negotiate this down at the end - it is in the contract. Estimate your real mileage before signing.

Lessors inspect the car at turn-in and charge for damage beyond normal wear. A scratch over 2 inches, a tire below 2/32 tread, or a dent on a body panel can each cost $150-400. A cracked windshield, missing floor mat, or significant curb rash on wheels adds up quickly. Excess wear insurance ($15-25/month) is available but adds to your monthly.

Charged when you return the car and do not lease another from the same brand. You pay this just to give the car back. Most brands waive it if you immediately start a new lease. If you are switching brands or buying instead, budget $300-500 per lease cycle.

Getting out of a lease early is expensive. The termination fee plus remaining payments can total the entire remaining lease value. Life changes - job loss, new baby needing a bigger vehicle, cross-country move - can trap you in a lease you cannot afford to exit. Lease transfer services exist but are cumbersome.

Most lessors require gap insurance covering the difference between what the car is worth and what you owe if the car is totaled or stolen. Some include it, others charge separately. Check the contract - it is sometimes buried in the dealer fees.

Charged upfront at signing. The acquisition fee (also called bank fee) is typically $595-895 and goes to the leasing company. Doc fees vary by state but average $300-500. These are separate from the down payment and due on day one.