Are You Obligated to Repair Your Leased Car or Pay for Damages?
When you lease a car, you may face the challenge of deciding whether to repair the vehicle to a high standard or to accept the hefty penalties for damages. This decision is not always straightforward and can be influenced by legal requirements and the terms laid out in your lease agreement.
You are legally responsible to pay for damages regardless of whether you were the one who caused them.
Understanding Your Obligations
According to the lease agreement, you must return the vehicle to the same condition it was in when you received it. This means making repairs to any damage beyond normal wear and tear. Failure to do so will result in significant fees charged by the leasing company.
Excess Wear and Tear Clause
The leasing agreement usually includes an 'Excess Wear and Tear' (EWT) clause. This clause specifies
the acceptable level of wear and tear that is considered normal. Any damage beyond this
acceptable limit is your responsibility to repair.
Getting Professional Repairs vs. Paying Penalties
Professionally repairing the vehicle to a high standard ensures that you meet the lease agreement's requirements and likely avoid the high penalty charges. However, there are instances where the leasing company may allow you to opt for another vehicle or negotiate a lower penalty in exchange for a lease agreement with another dealership.
Insurance and Leasing Considerations
Having car insurance can help cover the cost of repairs, but you are still responsible for returning the leased vehicle in a condition that meets the lease agreement. Neglecting to repair the vehicle may also affect the lease return value, potentially reducing the value of the vehicle at the end of the term.
Returning Your Leased Car
Your obligation is to return the leased vehicle in the condition specified in the leasing agreement. This does not mean returning the car in pristine condition or as new, but rather in the condition expected for the level of usage it has received. If you fail to do so, the leasing company will charge you fees for the repair costs.
The Financial Implications
Even if you have insurance, the professional repair costs may still impact your lease return value negatively. Therefore, it is advisable to repair the vehicle yourself or work with an approved repair center to avoid additional fees.
Conclusion
Leasing a vehicle is a significant financial commitment. Understanding and adhering to your lease agreement's terms is crucial to avoid penalties and unnecessary costs. Professional repairs may be the most cost-effective and efficient way to meet your obligations and return the vehicle in good condition.