Turning in a leased vehicle without checking the numbers can cost you. Mileage penalties, disposition fees, and missed equity are all avoidable. We help Twin Cities drivers understand what they have before the lease company gets involved.
When you turn a leased vehicle in at the end of your contract, the leasing company calculates mileage overages, assesses wear charges, and collects the disposition fee. In many cases, the vehicle has market value that exceeds the residual — equity that goes to the leasing company rather than to you because you did not explore your options first.
The most important thing to know is your vehicle's current market value relative to the buyout price in your lease agreement. If the market value is higher than your residual, you have equity. That equity can be captured by trading the vehicle in or facilitating a third-party sale before the lease ends. If it is lower, simply returning the vehicle at lease end may be the right move — but you should know that before you decide.
Mileage overages are another area worth examining before you turn in. Most leases charge $0.15 to $0.30 per mile over the contracted amount. If you are significantly over your allowance, the per-mile penalty can add up quickly. In some situations, the vehicle's current market value still exceeds the buyout plus the overage, meaning a trade-in before lease end could come out ahead of simply returning the car and paying the penalty.
The disposition fee — typically $300 to $500 depending on the manufacturer — is charged when you return the vehicle and do not continue with the same brand. It is often waivable if you lease or purchase another vehicle from the same manufacturer. Trading into a new vehicle at Feldmann Imports may provide a path to avoiding it, depending on your lease terms.
Enter your vehicle details and get a current market value. Compare it to the residual in your lease agreement to understand whether you have equity worth capturing before you turn it in.
Compare this value to your lease residual to understand your equity position before lease end.
Practical answers about lease pull-ahead, disposition fees, and mileage overages in the Twin Cities.
Yes, in most cases. The process involves getting the buyout price from your leasing company, comparing it to the vehicle's current market value, and either buying it out yourself before selling or working with a dealer who can facilitate the transaction. If the vehicle is worth more than the buyout price, there may be equity you can capture. We can help you understand the numbers.
A lease pull-ahead program lets you exit your current lease early — typically within the last few months — without paying the remaining lease payments. These programs are offered periodically by manufacturer captive finance companies. If you are within six months of lease end, it is worth asking your dealer whether a current pull-ahead offer is available.
A disposition fee is charged when you return the vehicle at lease end and do not lease or purchase another vehicle from the same brand. It typically ranges from $300 to $500. You can often avoid it by staying with the same brand or by purchasing the vehicle at lease end. Trading into a new vehicle at Feldmann Imports may provide a path to avoiding it depending on your lease terms.
Most leases charge $0.15 to $0.30 per mile over the contracted limit. If you are significantly over your allowance, it may be worth exploring whether a trade-in before lease end makes more financial sense than paying the per-mile penalty at return. We can help you work through the math with your specific numbers.
A lease buyout means you purchase the vehicle from the leasing company at the residual value in your agreement. A trade-in means the dealer facilitates the buyout on your behalf and applies the vehicle's equity toward a new purchase. When you trade a leased vehicle at a dealership, they handle the buyout transaction — you do not need to purchase the car yourself first.
Yes. We work with leased vehicles regularly. Bring your most recent lease statement, which shows your residual value and remaining payments, and we can help you understand whether an early exit or trade-in makes financial sense for your situation.
Get a current market value on your leased vehicle and compare it to your residual. Come in when you are ready.
Feldmann Acquisitions is operated by Feldmann Imports, a family-owned luxury dealer in Bloomington since 1983.
A service of Feldmann Imports · 4901 American Blvd W, Bloomington, MN