Sunday, June 27, 2010

Lease Return 101



I recently returned my leased Mazda CX-7 and sort of just winged-it. I had a lot of questions that no one really had any answers to, either because they had never leased or because they never paid attention. Here are some helpful tips that were specific to my situation, but probably general enough that they could be loosely applied to yours:
  • Your manufacturer will send you a notice in the mail about a month in advance of your last payment notifying you that you should schedule an inspection (to determine excess wear and tear, etc.) Mine was performed by a third party inspection agency in my office parking lot. One downfall was the cable-like 4-hour window that they gave me for when he would show up, but because I was at work regardless and because they agreed to give me a 30-minute heads-up in case I had run out, it wasn't that big of a deal.
  • Spend the $100 or so to get your car detailed prior to the inspection. Not only will it potentially mask some minor issues like worn-down carpet and spills, but it gives the inspector the impression that it's a generally well-kept car, or at least gives him no reason to think it's not.
  • Replace your windshield if it's cracked -- they'll charge you double if they have to do it.
  • Same with tires -- if the tread isn't past Lincoln's head on a penny (long-ways), replace them.
  • If you're over on your mileage, you may want to explore other options, like carpooling or getting into your new vehicle sooner than you need, until you get your inspection. One benefit though is that the mileage is reported from inspection date, which for me, was a month before I turned in my car. I didn't go over on mileage, but the reported mileage and the mileage when I turned in the car varied by about 1000 miles.
  • If you have a regular shop you visit and you're a super nice person, they may go over the car for you and cover up nicks and bumps for no charge so long as there's nothing substantial. If you're not that nice to the people who perform your service or just don't frequent a particular shop, definitely stop in to one with a good reputation and get a quote. If it's less than $50 it's likely worth it. Mom and pop shops are more likely to help because of the lack of corporate red tape.
  • Chat with your inspector upon arrival. He'll likely be using some sort of ruler or standard measure with which he determines areas to be normal or excess wear and tear. Typically it's scratches to the exterior that are more than 1" long or dents more than 1" in diameter, with anything larger than a cigarette burn on the interior being excessive. One thing to watch out for is the nicks on your hood; have him point out which are noteworthy and which aren't. My inspector gave me 5 or 6 only because I asked the question, but did say that it's a tough spot for a lot of people who live in the West because of the pebbles from the snow trucks.
  • Once you get through your inspection (about 30-45 minutes), he'll give you a receipt with everything he found. My balance was $194 +tax (why wear and tear is taxable is beyond me). This made me pretty happy that, back in college when I got that car, I didn't pay the $800 for excess wear and tear coverage.
  • Call your dealer before you actually take the car back, but only to be sure the correct person is there. This part of the process is not nearly as lengthy as the inspection. I basically just showed up when it was convenient for me.
  • Make sure you have both sets of keys to turn in. They'll charge you if not.
  • You'll have to sign stating that you didn't mess with the odometer. Interesting fact, because of course I asked if people actually do that: when a vehicle with the same make / model is totaled, people sometimes pull out the odometers and switch them out with their own, of course assuming that the totaled vehicle had fewer miles. Sounds un-fun. And it's a felony, so probably don't do that.
  • Of all things, they ask you if the spare and spare installation tools are still in the vehicle. Be sure they are before you go back. They'll charge for this too.
  • Be absolutely certain that the dealer removes your plates and you take them with you. This should be standard, but it's not like there are no sketchy car dealerships out there, and you don't want your registered car and plates with keys in someone's hands.
  • Also note that if you've relocated more than 75 miles from your original dealer, you can return it to whichever local dealer you choose.
  • If you aren't interested in getting your new car from the dealership to which you returned your vehicle, be sure to say so up front; they will try to sell you one when you arrive. Mine even told me that the car I had already bought to replace it -- Volkswagen as opposed to Mazda -- was an awful choice and that I'll be in the service shop all the time. Classy.

Best of luck. Hope this was helpful if you're a detail-oriented person like me and need to know what you're walking into.