The monthly payment is only part of what a lease costs. The rest shows up at the end, when the car is inspected, the miles are counted, and any fees are billed. This guide explains the common lease-end costs, how to estimate them, and what to check in your contract. We do not publish typical per-mile or per-item charges, because they depend on your contract.
The Federal Reserve's guide to closed-end leases lists the usual choices: return the car, repair it and then return it, extend the lease, re-lease if the lessor allows it, or buy the car. The lease agreement says which are available. For a return, the lessor arranges an inspection for excess wear and mileage, and you can usually attend and note concerns on the condition report. Some lessors allow a jointly agreed independent appraiser to settle a dispute.
The contract names your annual allowance and a charge per mile above the total allowed over the whole term. The calculation is simple, and the charge is whatever your contract says. As an example only, suppose a three-year lease allows 36,000 miles in total, you drive 42,000, and the contract charges $0.20 per extra mile (an assumption for this example, not a typical rate). The 6,000 extra miles cost 6,000 × $0.20 = $1,200 at turn-in.
Compare that with buying a higher allowance up front. The Federal Reserve notes a higher mileage limit raises the monthly payment but can reduce the total rent charge and the end-of-term charge. Try raising the allowance on the worksheet and compare the payment change over 36 months with the potential $1,200 charge. If you know you will drive more, pricing the extra miles at signing is usually easier to plan for than a bill at the end, but only the worksheet numbers can tell you which is cheaper for your lease.
The FTC says you pay for excess wear, damage and missing equipment, and the CFPB notes the leasing company usually decides what counts as excessive. The contract should define "normal wear"; Regulation M requires the lease to include a notice of excessive wear and mileage charges. Photograph the car at turn-in, bring your service records, and fix small items yourself only if repair costs less than the likely charge.
A disposition fee is a possible end-of-term charge for handling the return. A purchase option lets you buy the car, usually for the residual value plus a fee, if the contract includes one. In the calculator example, the residual is $20,300. If you can sell a similar car for more than the purchase price plus fees, the difference is your equity; the Federal Reserve notes that the lessee may have equity if the market value exceeds the residual. If market value is lower, buying makes less sense. Always check the actual price in the contract.
The Federal Reserve explains that the early termination charge is typically the lease payoff minus the vehicle's credit, and may include disposition fees, taxes and past-due amounts. Its example: a $16,000 payoff minus a $14,000 credit leaves a $2,000 charge. The earlier you end it, the greater the charge is likely to be. If the car is stolen or totaled, gap coverage may reduce the charge, but it usually does not cover past-due payments or other fees.
| Item | Where to find the amount | Your estimate |
|---|---|---|
| Excess miles × per-mile charge | Contract mileage clause and your odometer | Calculate |
| Wear and damage | Contract wear standard and an inspection before turn-in | Get a quote |
| Disposition fee | Contract fee table | Check |
| Purchase option (if buying) | Contract purchase option | Check |
| Final payment and taxes | Worksheet / payment schedule | Check |
Fill it in six months before the end date, when you still have time to repair, extend, or shop for a replacement.
In the calculator example the residual is $20,300. Suppose the contract's purchase option is that residual plus a $300 purchase fee, so $20,600, and you find that similar cars sell for about $22,500 (an assumption for this example). Buying and selling would give roughly $22,500 − $20,600 = $1,900 before sales tax and your own costs. If similar cars sold for $19,000 instead, buying would mean paying $1,600 more than market value, so returning the car is probably the better choice. The numbers are invented for illustration; look up the real market value and the real purchase price before deciding.
| When | What to do |
|---|---|
| 12 months before | Read the mileage, wear and purchase option clauses. Check your odometer against your allowance. |
| 6 months before | Estimate excess mileage and wear costs. Decide whether to buy, return, extend or re-lease. |
| 3 months before | Ask the lessor how the inspection works and when it happens. Fix cheap items if worthwhile. |
| At turn-in | Attend the inspection, photograph the car, and keep copies of every document you sign. |
| After | Check the final bill against the contract and keep records. |