3 Car Lease Penalties You Want to Avoid

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November 9, 2016

Car lease penalties are very common, and you should be aware of the potential lease scams that are out there. Car leasing is a very popular option to many drivers for various reasons. Leasing is like renting a car for an extended period of time. Here are some added lease fees you may have to pay.

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Excess Mileage Charges

Typically, leases set strict mileage numbers that you must stay under. This is because the lease payments are calculated based on the residual value, or the value after the lease term is done. The mileage of a car has a large bearing on the price of the car after the lease. Because of this, there are penalties if you go over the mileage in your lease. Typically you are allowed 10,000 to 12,000 miles per year, which is right around the average miles driven. After you go over, you usually pay per mile that you are over.

Early Termination

Early termination charges are usually associated with car leases. If you want to get rid of your lease, you can, but it will be very costly. Since chances are you are then going to switch to a different car (and different manufacturer), there are heavy charges, similar to phone carriers and their large termination fees.

Wear and Tear

If the car shows more than normal wear and tear, likely you will have to pay a penalty. For example, any major scratches or dents will likely cause penalty charges. Any excessive damages will also cause you to have to pay unwanted penalties that can be quite costly.

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