Whether it's your first time leasing a car or your fifth, there are some unexpected costs that can appear on the bill. The listed per-month rate often does not include administrative expenses, mileage fees, or end-of-lease fees. This article will outline some of the expenses you should look out for before signing a lease.
When signing a car lease, there is usually a mileage cap of around 10,000-15,000 miles per year. If you go over this cap, you can be charged about 10-25 cents per mile over the limit.
Administrative fees can vary depending on where you secure your lease and which vehicle you choose. Some of the more common fees include documentation fees, registration fees, and acquisition fees. The documentation fees are the cost of processing the paperwork for the lease. Depending on who is processing your lease, these fees can range from $150 to $500.
Registration fees are costs set by your local government to register the vehicle in your name; these also include the cost of securing the title for the car and getting the vehicle tags. These fees sometimes are listed under administration fees. There are also acquisition fees, which are the costs associated with arranging the lease. They can be added to your monthly bill or paid upfront. These fees are usually between $300 and $900.
If you are leasing a vehicle and returning it to a different location than when you first picked it up, you may need to pay a destination fee. This fee covers the price of transporting your vehicle back to its original location. In addition, there is the cost to clean the car and prepare it for selling or being leased again. That is called the disposition fee, and it is usually around $350. Any damages the vehicle has incurred during your lease will also result in additional costs.
While these are just some of the costs you can expect to encounter when leasing a vehicle, as you can see, they can add up quickly. Be sure to carefully read your lease before signing, so you will know what charges to expect.