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What Is a Lease Return?
A lease return is when you give your leased vehicle back to the leasing company at the end of your lease, assuming you’re not planning to buy it or start a new lease.
It’s a required step unless you buy out the vehicle or extend the lease.
Lease Return Meaning in Car Leasing
In car leasing, a lease return is more than just dropping off your vehicle. It involves a formal inspection, final paperwork, and the possibility of added fees.
When your lease is up, you can:
- Return the car and walk away
- Lease or finance a new vehicle
- Buy out the leased vehicle
Returning a leased car includes a review of your car’s mileage, condition, and documentation. If the car has excess wear or you’ve gone over the mileage limit, you may be responsible for additional charges.
How the Lease Return Works
Here’s what the typical lease return process looks like:
- 60–90 days before lease-end: Your leasing company sends a maturity notice with return instructions.
- 30–60 days out: Schedule a pre-return inspection to assess mileage and wear.
- 1–2 weeks before turn-in: Repair any damage and clean the car inside and out.
For the return day:
- Hand over the keys and complete final paperwork
- Vehicle undergoes a final inspection
- You receive a summary of any remaining fees
If you’ve leased through a dealership, they may coordinate the return, even if they didn’t originate the lease. You’re not required to return the vehicle to the same dealer.
Lease Return in Car Leasing Agreements
The lease return process is outlined in your original lease contract. The agreement will detail:
- Mileage limits and per-mile overage fees (typically $0.15–$0.30 per mile)
- Acceptable wear-and-tear standards
- Disposition fee, charged by most lessors at lease-end
- Timeframe for returning the car
Make sure to return the car by your contract’s stated maturity date to avoid extension fees or added payments. Always request and retain a copy of your final inspection report.
What To Bring to a Lease Return Appointment
Being prepared for your lease return can help you avoid unnecessary fees or delays. Here’s what to bring and check before your return appointment:
- All sets of keys and remotes
- Original floor mats, cargo covers, and accessories included at delivery
- Owner’s manual and maintenance records, if available
- Vehicle registration and insurance info (for verification)
- Pre-inspection report if you completed one
- Odometer reading documentation, if required
You should also confirm:
- That the vehicle is clean, inside and out
- Any damage or repairs have been addressed
- The fuel tank is at the required level, if noted in your agreement
Missing items like second keys or accessories can result in replacement charges. Having everything in order speeds up the return process and helps close out your lease smoothly.
When Lease Return May Not Be the Best Option
While lease return is the default path, it’s not always the most cost-effective. Consider alternatives:
- If the vehicle is worth more than the buyout price, you could sell or trade it and keep the equity.
- If you’ve exceeded mileage or have wear-related damage, buying the vehicle might be cheaper than paying fees.
- If you simply love the car and want to keep it, explore lease-end financing.
Pro tip: Dealerships may offer loyalty incentives such as waived disposition fees or bonus cash for returning lessees who lease again.
Related Terms in Car Leasing
- Prev Term: lease residual value
- Next Term: lease transfer
- Related Terms: lease buyout, disposition fee, excess mileage, pre-return inspection