Excess Wear and Mileage on Your Leased Auto
What are my options?
If you lease your vehicle, you’re probably familiar with “excess wear and mileage.” Your lease likely allows you to drive a maximum number of miles, and if you go over, you have to pay for those extra miles.
Most companies charge 15 to 20 cents a mile over the mileage you contracted for.
Same with wear to the vehicle. You’ll be charged for wear beyond what is considered “reasonable.” That definition can vary, but these things often are considered excessive:
- Large scratches
- Bumper damage
- Body damage more than 2 inches in diameter
- Cracks, cuts, tears or stains in the interior bigger than ½ inch
- Broken parts or missing equipment
- Worn tires
Those may sound minor, but they can add up. Not only will lessees pay for those damages, but also fees that can range as much as $500 or more to prepare the vehicle for resale.
In addition, most leases require the driver to maintain the vehicle as recommended by the manufacturer.
But you can minimize these expenses by:
- Making sure you’ve done the recommended maintenance throughout the length of the lease.
- Clean the vehicle inside and out before it’s inspected.
- If the damage charges seem excessive, contact your financing company.
- If repairs are necessary, keep the receipts.
- When you first lease the vehicle, ask your dealer if there is insurance that covers excess wear.
- Think about purchasing the vehicle; your financing company may waive end-of-lease charges if you buy the car (see your lease agreement for details).
For GM Financial lease customers who want to purchase their vehicle, there’s a new, easy way to do so from the comfort of your couch. It’s called Mode℠.
Mode is totally digital and is backed by GM Financial, so it’s financing you can trust.
If that sounds like something you’d like to explore, check out getmode.com and see if owning the vehicle you already like is the right choice for you.
By Julie Powell, GM Financial
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