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The possible disadvantages of car leasing are the following:

Early Termination Cost
If you must terminate your lease before the end of your contract, the cost is usually very high, much higher than might be expected. However, cost can be minimized by making the right termination choices. See the Early Termination Guide in our Lease Kit. Most people end their lease on schedule and do not end early, which avoids all early termination costs.

Little or No Ownership Equity
The trade-off for low monthly lease payments is that you typically do not build ownership or trade-in value in your leased vehicle. However, it is fairly common that the market value of a vehicle at lease-end is higher than the purchase option price specified in the lease contract - which means you may have some equity trade value. It's not unusual to end up with a few thousand dollars of unexpected equity.

Excessive Mileage Charges
If you exceed the mileage allowance in your lease contract, you will be charged for the extra miles at a specified per-mile rate, usually a reasonable $0.20 per mile. A large mileage excess could result in a hefty charge, even at a reasonable per-mile rate. You can reduce your exposure if you "buy" the extra miles you expect to drive at the time of lease signing. You avoid the higher end-of-lease charge this way. If you choose this option, you will be refunded for any unused miles.

Excessive Wear-and-Tear Charges
If you return a leased vehicle at lease-end with excessive dents, scratches, or unrepaired accident damage, you will be charged - because those damages reduce the vehicle's value. Most lease companies clearly specify what is considered "excessive" so that you'll know if you should get it repaired before returning your vehicle. Get the repairs done yourself before you return the vehicle and avoid being charged.

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