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August 10, 2021
Start preparing for the end of your Toyota lease now to avoid any unnecessary fees and complications.
As your lease-end date closes in, what do you need to do?
In this simple guide, we outline the Toyota lease-end options and what you can expect.
Table of Contents
|Toyota Lease-End Options|
|Return & Lease|
|Extend Lease||(Some dealerships may be willing)|
|Lease-End Fees||$250-$400 Disposition Fee, Wear and Tear, and Excess Mileage ($0.15 - $0.25 / per mile over)|
|Lease-End Benefits||Waive disposition fee|
One lease-end option is to return your Toyota without purchasing or leasing another one. If you plan to return your leased vehicle to Toyota at the conclusion of your lease you should:
Another option at the end of your lease is to purchase the leased vehicle. If you choose this option, begin preparing 90 days before your lease-end. The steps for purchasing your leased vehicle include:
The final option is to return your current leased vehicle and then lease a new one. Here’s what you need to do:
Toyota does not list lease extension as an option. Based on individual dealers, you may or may not be able to extend your lease. For example, Toyota Vacaville states that “you have three different paths you can take at the end of a Toyota lease, and, unfortunately, extending the lease is not one of them.”
On the other hand, Southeast Toyota lists extension as an option for a few months. You must request a lease extension with them.
To find out about extending a lease, talk with your Toyota dealership and find out if they offer lease extensions.
Here are the fees you may face at the end of your Toyota lease:
If you have any outstanding payments, they will show up on your lease-end invoice. Your security deposit is used to pay them, and you will be responsible for any remaining balance.
Wear and tear is a normal part of driving a vehicle. Some minor wear and tear is permitted and will not result in additional charges. However, excessive wear and tear will lead to extra charges at the end of your lease. The cost of this fee depends on the extent of damage, but you may be able to find guidelines in your lease term.
What Constitutes Wear and Tear?
Toyota created a helpful guide to explain wear and tear for leased vehicles. They recommend using a credit card as a guide to check for excess wear and tear damage.
Some examples of excessive wear and tear include:
Dealerships charge a disposition fee to recondition the vehicle and prepare it for resale upon your lease return. Disposition fees vary, but on average, you can expect between $250 and $400.
Leases include a mileage limit, generally around 12,000 miles per year. If you exceed the allotted mileage on your lease, you must pay an excess mileage fee. On average, Toyota charges between $0.15 and $0.25 per mile over your allotted miles.
The allotted miles and the fee will be outlined in your lease. Depending on how many miles you plan to drive, it may be worth considering a high-mileage lease.
If you choose to lease or finance another Toyota, they will waive the disposition fee on your current lease.
To qualify, you must lease or purchase a new or Certified Used Toyota within 30 days of returning your current lease.
At the conclusion of your Toyota lease, you can return the vehicle, lease a new Toyota, or purchase your current lease. Some dealerships may allow you to extend your lease for a few months, but you must check with your dealership.
You must return your leased Toyota to the originating dealership. This means you can only return your Toyota lease to the dealership where you initiated the lease.
The lease terms are set at the beginning of the lease, so you will not be able to negotiate them during the lease-return process.
You can return your Toyota before the lease-end date, but you will have to pay early termination fees. Look into the alternatives to ending a lease early before doing so.
You must pay a disposition fee to the dealership when returning your Toyota vehicle. You are also responsible for any excess wear and tear, excess mileage, and outstanding payments.
Damage larger than the size of a credit card warrants extensive wear and tear, according to Toyota. Broken mirrors, dented bumpers, and interior burns are examples.
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Posted in Car Buying Tips |