Turning in leased vehicle? Be careful — or be gouged

Nov 26, 2009

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Columnist

Remember the last time you turned in a leased vehicle? The representative probably did a little dance around it and you both agreed that the car you'd borrowed for four years showed reasonable wear and tear. Been a pleasure doing business with you.

Can you think of a more subjective word than "reasonable?"

When the auto industry did a Humpty Dumpty last summer, I called two dealerships.

"The value of a returned leased vehicle will no longer be close to the residual value estimated at the beginning of the lease, will it?" I asked. "You're going to start being really picky about returned lease vehicles, aren't you?"

"Of course not!" they lied.

A chat with George Iny, president of the Automobile Protection Association, reinforced my fears. When Chrysler and GM cancelled their leasing programs last summer, the APA noticed not just an increase in complaints about residual values, but also on charges being assessed on returned vehicles.

"They have to get as much value out of that vehicle as possible, and they're going to do that by charging the lessee for damage. But consumers should know: they're not just going to touch up a scratched bumper – they're going to replace that bumper. And the bill goes to you."

So what do you do? Iny suggests a month before your lease is up, take it to your dealer (or their designated intermediary) for an appraisal. Get, in writing, what they're going to charge you for things they note beyond reasonable wear and tear.

Iny has some excellent suggestions for mitigating that final tab.

TIRES: Mismatched tires are an instant alert to an appraiser on a returned vehicle. What's been good enough for you won't be for the leasing company. You're best off replacing all four with matching used ones, or you may be charged for four new tires. On luxury leases, slapping on four cheap tires is a no-no. And returning any car with winter tires is another flag.

WINDSHIELDS: If you're driving with a damaged windshield, you're doing more then endangering yourself in case of an accident. You'll be handing the leasing company the opportunity to replace it, and you'll pick up the tab. Look for scratches and starbursts, and take appropriate measures.

BUMPERS: Especially in urban areas, bumper damage is almost guaranteed. If it's cosmetic, reputable companies can do "blowing in" – effectively air-spraying the scratch. If the leasing company makes the call, you pay for the bumper to be repainted, if not replaced.

DENTS: If the paint hasn't been compromised, there are ways to suction or hammer out small dents. Which are going to be cheaper than being charged for new panels or fenders.

INTERIORS: Remember all that aftermarket stuff you so lovingly installed? See all those holes from the installation? You could be buying a replacement dashboard. Also take a close look at upholstery damage; what could be repaired by an expert will be ripped out and replaced by the leasing company. And again, the bill goes to you.

"We're sloppy, and they're greedy," Iny sums up. "People on their third or fourth minivan tend to have the worst times of it. They live in them."

Check out the fine print and start doing your homework.

Lorraine Sommerfeld's column appeals Saturday in Wheels and Mondays in the Star's Living section.

www.lorraineonline.ca

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