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5 Fees to Watch for When Ending Your Car Lease
Published 6/17/25
Estimated Read Time: 6 minutes
TL;DR: At the end of your car lease, there are several fees you might encounter, such as mileage overage, disposition, and excessive wear fees. Dealerships may also throw in additional charges like administrative costs. By being informed and proactive, you can avoid surprises. And if you want to bypass these fees entirely, Lease End can help you buy out your lease and keep all the available equity in your car.
While the prospect of getting a new ride at the end of your lease is exciting, there are several potential fees that can catch you off guard.
The Consumer Leasing Act of 1976 stipulates that all leasing costs—including end-of-lease charges—should be explicitly disclosed in the lease contract.
Of course, that doesn't mean they always are.
Dealerships still try to surprise lessees with extra charges, regardless of whether the car is being turned back in or bought out.
Here, we’ll cover several hidden end-of-lease fees so that you enter the end-of-lease process empowered rather than caught off guard.
Of course, that doesn't mean they always are.
Dealerships still try to surprise lessees with extra charges, regardless of whether the car is being turned back in or bought out.
Here, we’ll cover several hidden end-of-lease fees so that you enter the end-of-lease process empowered rather than caught off guard.
Table of Contents:
1. Mileage Overage Fee
2. Lease Disposition Fee
3. Excessive-Wear Fee
4. Early Termination Fee
5. Lemon Law Fee
Other Dealer Fees
1. Mileage Overage Fee
2. Lease Disposition Fee
3. Excessive-Wear Fee
4. Early Termination Fee
5. Lemon Law Fee
Other Dealer Fees
Standard End-of-Lease Fees
These fees are usually listed in your lease contract, but they can still be surprising when it’s time to hand over the keys.
Mileage Overage Fee
TopMost car leases come with a mileage limit, typically 12,000 miles per year. If you exceed that limit, expect to pay extra—anywhere from 10 to 30 cents per mile over your limit.
Let’s break it down: if your lease allows for a $0.20/mile overage fee and you drive an extra 5,000 miles, that could add up to a whopping $1,000 in extra costs. And that’s for a 3-year lease, so it’s not just 5,000 extra miles in one year. It’s the entire lease term.
How to avoid it:
Consider buying extra miles when you lease, or check out any mileage forgiveness programs. If you've already gone over your limit, a lease buyout could be your best bet—no mileage overage fees and no more dealership drama.
Consider buying extra miles when you lease, or check out any mileage forgiveness programs. If you've already gone over your limit, a lease buyout could be your best bet—no mileage overage fees and no more dealership drama.
Lease Disposition Fee
TopThis fee is like a “goodbye” charge when you return your car to the dealership. It covers the cost of preparing the vehicle for resale. Typically, this fee ranges from $300 to $500, but some dealers may waive it if you buy or lease another car from them.
How to avoid it:
Check your lease agreement to see if they’ll waive the fee if you lease or purchase another vehicle. If you’re planning to buy your leased car, you may also be able to negotiate or use a third-party financing option like Lease End to avoid this fee.
Check your lease agreement to see if they’ll waive the fee if you lease or purchase another vehicle. If you’re planning to buy your leased car, you may also be able to negotiate or use a third-party financing option like Lease End to avoid this fee.
Excessive-Wear Fee
TopWhile your lease should account for some normal wear and tear, you’ll be charged if the car has excessive damage. Some leasing companies even provide guidelines to help you understand what’s considered “normal.” If you don’t have these guidelines, it’s wise to ask the dealer for specifics about how they define excessive wear.
How to avoid it:
Schedule a pre-inspection to catch any damage before turning the car in. Fixing minor issues beforehand could save you from paying higher fees later on.
Schedule a pre-inspection to catch any damage before turning the car in. Fixing minor issues beforehand could save you from paying higher fees later on.
Read More: Can I Repair a Leased Vehicle By Myself?
Early Termination Fee
TopIf you can’t finish your lease and decide to end it early, brace yourself for an early termination fee. This is typically several months’ worth of lease payments.
How to avoid it:
Consider transferring your lease to someone else or working with the leasing company to find an alternative solution.
Consider transferring your lease to someone else or working with the leasing company to find an alternative solution.
Dealership-Based End-of-Lease Fees
These other fees are a little more out of the ordinary—and good examples of how dealerships have can utilize ambiguity to charge more to consumers.
Lemon Law Fee
TopLemon Laws hold manufacturers responsible for defective vehicles. These laws protect drivers who purchase a lemon, or a car that is faulty at the time of purchase.
That being said, Lemon Laws vary by state, so implications of returning a leased lemon can depend on where you live.
Some dealerships have been known to charge a fee when drivers return a leased vehicle that is a lemon, or in other words, a car that has experienced significant mechanical issues during the lease term.
In 2022, a Nissan dealership in Westbury, NY, was investigated by a local news station and caught charging customers a “Tri-State lemon law fee” at the end of leases “to cover [their] responsibility with the state.” If this sounds fishy to you, you're spot on—New York (WABC) journalist Nina Pineda heard about this fee and was just as suspicious.
Pineda went to the New York Attorney General about it and they confirmed that this has never been a state-stipulated fee. She then confronted the dealership manager about the fee, and the dealership ended up refunding lease-end charges to multiple customers totaling $31,500.
Other Dealer Fees
TopDealerships may tack on additional charges like:
- Administrative fees
- Vehicle inspection fees
- Paperwork fees
- Unnamed "dealer fees"
Investigative Reporter Jeff Weinsier (with WPLG Local 10) spoke with multiple people with leases ending in Florida, and discovered some recurring problems.
At a Volkswagen dealership, at least two lessees were presented with a "dealer fee" and a "mechanic-certification fee" when they tried to buy out their leases.
One of these consumers said the dealership would not sell his leased car to him without these two fees paid, which would come out to almost $2,000.
The other lessee, a local attorney, filed a complaint with the county about this—he won, and didn’t have to pay.
Knowledge is Power
When returning a car at the end of a lease, some of these fees are, unfortunately, unavoidable.
But the more you know, the better you are positioned to take control of your leasing experience—and to avoid being taken advantage of.
For the most proactive approach possible, take these tips into account before ending your lease:
- Review your lease agreement to understand what fees may apply in your situation.
- Discuss any fees with the dealership upfront and try to negotiate or waive them if possible.
- Schedule a pre-inspection of your vehicle before returning it to identify any excess wear and tear that may result in charges.
- For your next lease, consider working with a more reputable dealership with transparent pricing practices to avoid unnecessary fees.
By being proactive and informed, you can help ensure a smooth and cost-effective lease return process.
Skip the Hidden Fees and Utilize Lease End
If these fees (or the prospect of haggling with the dealership) have you stressing about the end of your car lease, don’t worry—we’ve got you covered.
With Lease End, you can buy out your leased car through one of our financial partners and skip all the dealership fees. Plus, you’ll get to keep all the equity you’ve built in your leased car.
If you're ready to chat through your options with a dedicated financial advisor, give us a call at 888-307-5197 to get in touch with one of our lease-end experts.
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About the author
Sarah Williams
Sarah loves breaking down complex topics and making them accessible to everyday readers. With four years of experience writing in the fintech and auto industries, she’s helped shape Lease End’s voice and given consumers the confidence they need to tackle leasing topics.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
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