Complete Guide to Fighting Lease-End Charges

• Excess Wear and Tear:
• Dents, dings, and scratches beyond normal
• Interior stains, tears, or burns
• Windshield chips and cracks
• Wheel damage and curb rash
• Missing equipment

• Excess Mileage:
• Charges per mile over your lease limit
• Typically $0.15-$0.30 per mile
• This is contractual and harder to dispute

• Disposition Fee:
• Fee for processing the returned vehicle
• Usually $300-$500
• Often waived if you lease another vehicle from the same brand

• Missing Equipment:
• Floor mats, cargo covers, keys
• Owner's manual, spare tire
• Charges are often inflated

The key question is: what's "normal" wear and tear? Federal law requires lessors to define this clearly, and industry standards provide guidance.

• Generally considered NORMAL:
• Small scratches that don't penetrate the clear coat
• Minor dings under 1/4 inch
• Light scuffs on bumpers
• Normal tire wear
• Small chips from road debris

• Generally considered EXCESS:
• Deep scratches or gouges
• Dents larger than a quarter
• Cracked or broken parts
• Burned or torn upholstery
• Broken or malfunctioning equipment

The gray area is where most disputes occur. This is where the Credit Card Test and manufacturer guidelines become crucial.

The Rule: If a scratch, dent, or area of damage can be covered by a standard credit card (approximately 3.375" x 2.125" or about 85mm x 54mm), it's generally considered normal wear and tear, not chargeable damage.

1. Application:
2. Place a standard credit card over the damaged area
3. If the card completely covers the damage, it's likely normal wear
4. If damage extends beyond the card's edges, it may be excess wear

• Important Notes:
• This applies to individual instances of damage, not cumulative damage
• Deep damage (dents, gouges) may still be chargeable even if small
• Multiple small damages in the same area may be considered together
• The test is a guideline, not an absolute rule

When disputing charges, reference the Credit Card Test explicitly:

In your dispute letter: "The scratch on the driver's door measures approximately 2 inches in length and does not penetrate the clear coat. Per the industry-standard Credit Card Test, damage that can be covered by a standard credit card (3.375" x 2.125") constitutes normal wear and tear, not excess wear. This damage clearly meets that standard."

• Documentation tips:
• Photograph the damage with a credit card placed next to it for scale
• Measure and document the exact dimensions
• Note if the damage is superficial or structural

• Lessors must clearly disclose:
• The standards for determining excess wear
• How excess wear charges will be calculated
• Your right to obtain a pre-return inspection

If these weren't disclosed: You may have grounds to dispute any charges. Check your original lease agreement for the wear standards section.

• Required disclosures include:
• Written description of what constitutes excess wear
• Statement of any charge for excess wear at lease end
• Clear explanation of how charges will be determined

Regulation M requires wear standards to be "reasonable." This means:

• Standards must be based on expected wear for vehicle age and mileage
• Charges must reflect actual cost to repair, not arbitrary amounts
• Lessors cannot create standards designed to generate fees

• Unreasonable examples you can challenge:
• Charging for damage that wouldn't affect resale value
• Using new-part prices when used parts are industry standard
• Charging labor rates far above market rates
• Assessing multiple charges for related damage

You have the right to request a pre-return inspection. This is powerful because:

1. You see charges before returning: No surprises
2. Time to fix issues: You can repair items yourself for less
3. Documentation: Get the inspection in writing
4. Negotiation opportunity: Dispute items face-to-face

• How to request:
• Contact your lessor 30-60 days before lease end
• Request a written inspection report
• Ask about any identified charges
• Get repair estimates to compare with charge amounts

Most OEM wear guides are available online or from your dealer:

BMW: BMW Financial Services Wear and Use Guide Mercedes: MBFS Fair Wear and Use Guidelines Toyota/Lexus: Toyota Financial Services End of Lease Guide Honda/Acura: Honda Financial Services Wear Guide Ford: Ford Credit Wear Guidelines Audi: Audi Financial Services Wear & Use Standards Tesla: Tesla End of Lease Return Guide

Tip: Request a copy in writing from your lessor. They should provide their standards upon request.

Reference the manufacturer's own guide in your dispute:

Example dispute language: "According to the BMW Financial Services Wear and Use Guide, 'minor scratches on wheels that do not expose bare metal' are considered normal wear. The wheel damage documented in my inspection report consists of light curb scuffs that do not penetrate to bare metal. Per BMW's own standards, this should not be a chargeable item."

• Key sections to review:
• Exterior paint and body
• Interior surfaces
• Tires and wheels
• Glass and lights
• Mechanical components

When you receive your inspection report or final bill:

1. List every charge and its amount
2. Compare to your photos taken before/during return
3. Identify charges that may be:
4. - Normal wear per Credit Card Test
5. - Compliant with OEM wear guide
6. - Pre-existing (document with dated photos)
7. - Incorrectly assessed

1. Calculate total disputed amount vs. amount you accept

Build your case with documentation:

• Photographs:
• Dated photos from lease return
• Photos with credit card for scale reference
• Photos showing condition vs. what's claimed

• Documents:
• Original lease agreement (wear standards section)
• OEM wear guide
• Pre-return inspection report (if obtained)
• Repair estimates from independent shops

• Research:
• Market rates for repairs in your area
• Industry standards and guidelines
• Your state's consumer protection laws

Your dispute letter should include:

• Header information:
• Your name, address, account number
• Vehicle information (VIN, make, model)
• Date of lease return
• Reference to inspection report/bill

• For each disputed item:
• Specific item and amount charged
• Reason for dispute (cite standards)
• Supporting evidence reference
• Requested resolution

• Closing:
• Total amount disputed
• Request for response within 30 days
• Statement of intent to escalate if not resolved

Send via certified mail with return receipt requested.

If your initial dispute is denied:

1. Internal escalation:
2. Request supervisor review
3. Ask for specific policy citations for their position
4. Mention intent to file regulatory complaints

1. External escalation:
2. State Attorney General - Consumer protection division
3. CFPB - Consumer Financial Protection Bureau
4. State DMV/Motor Vehicle - For licensed dealer issues
5. BBB - Better Business Bureau
6. Small claims court - For amounts under your state limit

• Arbitration:
• Some lease agreements include arbitration provisions
• New York offers a specific lease arbitration program through the AG
• Check your contract for dispute resolution procedures