When you lease a vehicle, you should be aware of the end of lease costs you are required to pay. For instance, if you don’t buy the car you have to pay a disposition fee. This refers to the costs the financing company will have to pay to resell the car and associated administration charges. Be aware of the disposition fee in advance to avoid extra costs at the end of the lease term. You may not be able to negotiate this fee when your lease period ends so make sure you take care of this aspect from the outset.

The mileage allowance provided will be clearly mentioned in your car leasing contract. Make sure you do not exceed the mileage limit or you may have to pay excess mileage costs at the end of the lease term. You are charged extra for every mile you exceed. At the time of signing the lease agreement, negotiate the mileage allowance with the dealer if you feel that the imposed limit is small.

Wear and tear is another aspect you have to keep in mind when you sign the leasing contract. If the car you lease suffers damage then you will be responsible for the repair costs. The damage caused will be assessed by the dealer and deemed normal or excessive.

Adhere to all the terms of your car leasing agreement and have a clear idea about the end of lease costs.