by Tom Williams

Savvy business owners who choose to lease business equipment can save themselves hard-earned cash, accumulated debt, and industrial-strength headaches by optimizing their relationships with lending entities.

Customers who are looking to lease equipment for their business most frequently seek financing from one of two sources – traditional bank financing programs, or specialized leasing companies like eLease. The following are four key differences to consider when comparing these programs.

1. Interest Rate Fluctuations

In a healthy economy, banks often choose to offer equipment leasing as a service for their business clients. In this way, banks foster economic growth in local communities by supporting expansion in growing industries. However, banks are not in the business of taking risks, and because of this, their programs are subject to change as current economic conditions falter.

An example of this is interest rates. Consistent with their conservative risk philosophy, banks do not entertain risk with interest rates. Typically, bank lines fluctuate on the Prime Rate — as the Federal Reserve raises or lowers the rate, so will your interest payment increase or decrease. These economic fluctuations can have financial impact on your business outside of your control.

The opposite is true for leasing companies, because they take 100% of the interest rate risk. Therefore, when industry rates decrease or increase, your lease payment stays the same. The payment on a lease will never change during its term regardless of interest rates and inflation. You know what you are getting from day one.

 

2. Impact on Additional Financing

The way that your financing source reports your leased business equipment with the Secretary of State can directly impact your ability to obtain additional financing for your business.

When your business equipment is financed by a third-party leasing company, that company files a UCC (Uniform Commercial Code) which specifies to the Secretary of State where the customer is located, and that the leased equipment is owned by the leasing company. For example, if your business makes the decision to lease an oven for your new restaurant, a leasing company would designate the oven itself as collateral.

In comparison, all property owned by the business is stated when a bank finances the lease. A Blanket UCC is usually filed, which includes the equipment as well as all assets. Therefore, not only would the oven for your new restaurant be considered collateral, but so would your entire business.

When a blanket UCC is in place, other banks will not want to provide overlapping financing with another lender. If, however, your financing is provided through a third-party leasing company, other lenders will see that only equipment is under consideration, and be favorable to loan financing because they will be able to Blanket UCC the rest of the business.



3. Access to Capital

Both banks and leasing companies evaluate exposure (the total amount of debt taken on by a company) when considering whether to offer financing. The difference in the way these entities look at total debt can have significant influence on their decision to finance your equipment, as well as other financed assets.

In most cases, banks have a borrowing threshold with a borrower. This may include the line of credit on the home, auto loans, credit cards, business debts and personal mortgage. If you get into an amount of debt that the bank sees as a risk, they may choose to end business with your company. Or, they may refuse you financing due to how much debt your already have.

Leasing companies deal with the same issue, but only consider the equipment financed for that customer. So, by using a third party leasing company, you can retain access to capital with your banker without tying up credit lines. A business can never have too much access to capital!



4. Flexibility in Terms

Most banks are highly structured and cautious in their leasing terms. Frequently, they require 10% to 20% down to finance equipment for a business, with a requirement of security such as a minimum amount in a CD, or reserve in a checking account.

While the primary objective of a bank is to protect its interests, a leasing company’s main goal is to generate cash flow. Therefore, leasing companies are highly creative in finding the easiest way for a business to get new equipment. It is not uncommon to terms that include seasonal payments, or no payments for 90 to 180 days.

 

In summary, a good rule of thumb is to use your bank for working capital, and equipment finance companies to finance equipment.

 

 



Sell and Rent Back

The following are frequently asked questions you should know the answers to before signing your new car leasing agreement.

Q. Can I trade my existing car in, what will it be worth and how will it affect the cost of my new lease car?

A. This can help lower the monthly payments on your new lease car. You need to know when the discount is applied and how much this will be as you may have to pay the full amount and claim it back later find out first! Make sure you know exactly how much trade-in value you are getting.

Q. What do I pay when signing the lease?

A. Find out all the costs and what they are before you sign on the dotted line for your new lease vehicle. There can be several charges that you haven’t thought of and you should know what each one is and when it needs to be paid.

Q. What free miles do I get, what happens if I go over this?

A. A typical lease car agreement will be for annual mileage between 10,000 and 15,000 miles.

After this you will be charged for every mile at a set rate per mile. Sometimes you can agree a lower rate than first offered this is important if you think you may go over the set mileage as costs can mount up on your lease car!

Q. If I can’t make a lease payment on my new car what happens?

A. Although this is unlikely you still need to find out what happens if you find yourself unable to make the payments on your lease car. Even if it is only a temporary change in circumstances involving one late payment make sure you know the consequences. Insurances such as Early Termination Insurance and Redundancy Insurance are available to cover all eventualities, please ask one of our sales team for further information on that.

Q. Can I hand my new lease car back early?

A. Typically if you have to hand the car back before the end of the lease agreement you will have to pay an early termination charge. Make sure you ask how much this could be. Again, insurances such as Early Termination Insurance and Redundancy Insurance are available to cover all eventualities, please ask one of our sales team for further information on that.

Q. How long is the lease?

A. Lease terms can vary anywhere between 1 year (12 months), two years year (24 months), three years (36 months) and even five years year (60 months). When you choose your lease term you should take into consideration the servicing schedules of the car as terms that go slightly over a 12 month period could end up costing you more in servicing charges e.g. a 39 month term instead of a 36 month term. Check the servicing schedule first!

Q. Can the lease be extended?

A. Not usually a problem but it is worth asking first as the monthly costs may go up. You do not want to be paying one fee for two years then when you decide to keep your lease car for another year to find that the monthly payment goes up.

Q. What happens at the end of the lease?

A. If you have ever wondered where all the cars go at the end of the lease the answer is the caution rooms. Main deals and independent car dealers by the ex-lease stock at trade prices and them sell it on to the public with their profit added. So if you are looking for a used car bargain, don’t visit your local dealer, go to the source and get down to your local car auction!

Q. Can I lease a used car and save money?

A. You can lease a used car but there are several points you should be aware of. The car usually has to be less than 24mths old, “VAT Qualifying” and covered less than 20,000 miles.

Your payment may be lower compared to leasing a brand new car because much of the depreciation will have already occurred. British manufactured cars are usually good value as used cars as they suffer heavy depreciation in the first 12mths. A car that is one or two years old is usually a good bet don’t buy something too old. Also check the residual value at the end of the term to make sure it is not too high.



Sell and Rent Back

Having just completed the Canyon Leasing Training program (www.CanyonLeasing.com) I am embarking on building my own Leasing Company. In hopes of developing relationship with small business the acquire equipment I have outlined the benefits of leasing in this article.

While 80% of all US businesses have leased equipment at one time or another, some may not be aware of the benefits, nor of the hidden costs involved with leasing. Sometimes leasing equipment, instead of buying it, can be the best option for your business.  However, there are many variables that should be considered, including costs, use restrictions, and legal implications.

Leasing operating equipment, such as computers, vehicles, and machinery, often makes more sense than buying. However, while favorable leases are often good bets, unfavorable ones can easily sink an emerging venture. While doing your legal homework can help prevent bad deals, it’s always a good idea to have a lawyer look over a lease before signing it.

Benefits of Leasing Equipment

1.      Leasing is Flexible.

Companies have different needs, different cash flow patterns, and sometimes irregular streams of income. For instance, startup companies typically are characterized by little cash and limited debt lines. Mature companies might have other needs - to keep debt lines free, to comply with debt covenants, and to avoid committing to equipment that may quickly become obsolete. Therefore, your business conditions - cash flow, specific equipment needs, and tax situation may help define the terms of your lease. Moreover, a lease provides the use of equipment for specific periods of time at fixed rental payments. Therefore, leasing allows you to be more flexible in the management of your equipment.

2.      Leasing can be Cost-Effective.

Equipment is costly and some of the costs are unexpected. When you lease, your risk of getting caught with obsolete equipment is lower because you can upgrade or add equipment to best meet your needs. Further, your equipment needs can change over time due to changes to your company, such as diversification. Leasing allows you to stay on the cutting edge of technology.

3.      Leasing Has Tax Advantages.

Rather than deal with depreciation schedules and Alternative Minimum Tax (AMT) problems, you, the lessee, simply make the lease payment and deduct it as a business expense.

4.      Leasing Helps Conserve Your Operating Capital.

Leasing keeps your lines of credit open. You don’t tie up your cash in equity. Also, you avoid costly down payments. With other advantages such as off-balance sheet financing, leasing helps you better manage your balance sheet.

Although leasing does provide benefits to business owners, there are hidden costs to deal with, and business owners need to be aware of such costs.

Hidden Costs of Leasing

1.      Non-Cancellable Agreement

When entering into a lease contract, the business owner agrees to make all the lease payments to the end of the term. While there is no penalty for early payoff, the full payments are normally required to pay off the lease early.

2.      Document Fees

These fees are administrative costs due upon signing the lease and range from $50 to as much as $350 or more, depending upon the complexity of the lease contract and size of the transaction.

3.      UCC-1 Fees

These are fees required by the Secretary of the State where the equipment is being leased. The fee is usually is a one-time percentage that is due upon signing the lease documents.

4.      Taxes

In most states, there is a tax on goods purchased. Some states tax at 5 or 6%, or more. The tax is factored into the lease payments, so be prepared to calculate this cost, as it could increase your monthly lease payments $20 or more per month depending upon the total cost of the equipment, and the state of purchase.

5.      Insurance

A section in the lease documentation will require that the equipment be covered by insurance. Here the leasing company is protecting their interests. They want to make sure they will be fully compensated for the equipment in the event of fire, theft, flood, etc. Most business owners will already have adequate insurance on their building to cover such equipment (if it is contained and used inside). However other companies using more portable equipment (such as lift trucks, golf carts, hydraulic lifts, bulldozers, etc.) may need to take out additional insurance to assure adequate coverage.

The bottom line is that when you are deciding to lease equipment, be certain you are aware of all costs involved with the transaction. Then balance them against the benefits to choose the appropriate choice for you and your business.

Albert Lindenberg

Canyon Leasing

Al.Lindenberg@CanyonLeasing.com



Repossession

Once you have decided to lease a vehicle, the next step is to decide where you are going to lease the vehicle from. Car leasing directories can be a great help when deciding this. A car leasing directory is basically a listing of different leasing companies. These listings are generally sorted by region or county. Once you have found a directory with different leasing companies, you can click on their name and find a short description of the company. It is here that you can also find contact information pertaining to certain leasing companies.

The first advantage to a car leasing directory is that it saves time. Because you will have a listing available for many different leasing companies in the area, you will have a general idea of what services they offer and will be able to compare companies very quickly to find exactly what it is you are looking for. There is no need to run around to different leasing companies and talk to them each individually, only to find out that the majority cannot offer you the services you are looking for.

Finding a leasing company through a car leasing directory can also be beneficial because you will not be limited to companies that are just in your immediate area. These directories usually have information regarding leasing companies outside the surrounding area. This could prove very useful when looking for a lease as you may be able to find a better deal with a company that is not in your local area.

The companies will advertise what vehicles they currently have deals on. This can also be very beneficial as they may be offering something that is perfect for you and this will give you a heads-up that there is a company specializing in a particular vehicle or a certain lease package that is just what you have been wanting.

Car leasing directories will also usually have complete contact information for the leasing companies that they have listed. This can save a lot of hassle as well. When the leasing company is actually part of a dealership or other car sales company, it can sometimes be difficult to know who to speak to about leasing a car. Because this can be just one small division in a huge company, it can seem a little overwhelming without a little help. Car leasing directories offer this help and will point you in the right direction before you even pick up the phone to call the company.

Once you have decided that leasing a car is the right option for you, checking out different car leasing directories, these can be a really big help. Not only do they save time and hassle but they can take a lot of confusion out of leasing a car. These directories will give you many different options for a leasing company and will outline what those different companies have to offer.



Quick Property Sale

Some of these factors are minor, while others will have a major impact on your decision. If you do opt for Lease Takeovers and consequent Lease Transfer, you should keep these factors in mind while making your decision and calculations of the cost.

One Question that you should be asking is about the charges or Lease Transfer fee that the car dealership or leasing company will charge you. The lease transfer charges vary with every leasing company and car dealer. There is no standard fixed charge and you enquire about the fees with the vehicle leasing company or the vehicle dealership. If you want to get out of a lease, you can call the business manager of the vehicle dealership and request them for a quotation for the Lease Transfer fees. If you are considering a Lease Takeover and if the current lessee requests that you pay the lease transfer fees, you can speak to the current lessee and request the amount.

Another important factor to consider is if the vehicle is in another province or state and if so, whether you can still go ahead with the Lease Takeover. If the vehicle-leasing company that you are dealing with has a nationwide presence, as almost all of them do, then the Lease Takeover and Lease Transfer will be a smooth and trouble free affair. Nut you will have to enquire about this with the vehicle dealership and the vehicle leasing company and enquire about the charges too, if any.

If you are considering a Lease Takeover from another province or state, you must also enquire and consider the cost of transportation and other charges. The cost of transport can and should be negotiated with the current lessee, as most of them are desperate to get out of the lease, and will certainly negotiate. If you have found the vehicle that you have liked, then you can discuss the geographical location with the current and make an offer that could include the transportation costs of the car. For vehicle inspection, you can ask the current lessee to get the vehicle inspected – with both a physical and mechanical inspection - by the vehicle dealer. You can request the lessee to send the reports of the inspections to you for review. Since the owner of the vehicle does not change, only the lessee changes, provincial inspections and paper work are very minimal and not too costly for a Lease Transfer across provinces.

You should also be aware of the legal issues relating to the Lease Takeover and Lease Transfer. Lease transfers are basically credit approved legally valid transfers that have been sanctioned by the Vehicle Leasing Company. A typical case is where the selling vehicle dealership participates in the Lease Transfer, as they are the selling agents for the Vehicle Leasing Company. In short, there are many factors and issues, along with the final and total costs that you should calculate and be aware of before finalizing the deal for the Lease Takeover and Lease Transfer to your name.

Please do write to us for information / assistance or visit our site for more information on

Lease Takeover, Lease Transfer (in English) or transfert de bail, transfert de location (in French) anywhere in Montreal, Quebec, and Canada.



Repossession

When most people are looking for a new car, one of the options that they think about is whether or not a car lease would be more beneficial and cost effective for them than purchasing the car. There are many schools of thought about this and many differing opinions, but what it comes down to is that there is no right or wrong answer that applies to everyone, because everyone’s situation and needs are different.

When you sign on for a car lease, it means that your payments are going to reflect the amount of depreciation of the car over the term of the lease. For example, if the car you are looking at has a sticker price of $30,000 and you sign up for a one year car lease, the dealership estimates that this vehicle, after two years of use and about 24,000 miles, can be sold for say $20,000, assuming a modest dealer profit is included there as well. So your lease payments would be based on $10,000.

Granted, this is a very simplistic look at how lease payments are calculated, but this is pretty much the bottom line. Based on this, you can see that choosing a vehicle for your car lease that has a great resale value is going to keep your lease payments much lower than a car that depreciates much more quickly and does not have a good resale value.

The miles that you plan to drive the car that you put on lease is critical, since one of the major factors that influences the car’s resale value will be the number of miles on the car. Most lease programs allow you about 12,000 miles per year. It is very important that you are able to come up with a very good and very accurate estimate of the number of miles you will drive the car over the lease term, since that will have a major impact on the amount of your monthly lease payment.

If your planned usage of the car is to drive more or less than the standard number of miles per year, talk to your dealer about that. If your usage can be committed at 9,000 miles per year instead of 12,000 then your lease payments will be lower because the car will have fewer miles on it at the end of the car lease term, thereby giving it a higher resale value. But if you realistically plan to put 18,000 miles a year on the car, be VERY sure to mention that also. Your lease payment will go up, but that is much better than being assessed for excess mileage at the end of the lease, where excess mileage may be charged at a rate as high as 30 cents per mile!

In a car lease, you do not own the car and will never have title to the car. In essence, you are doing a long term rental of the car. But you still need to make the payments, and you are responsible for car insurance on it. And since you do not own the car, you will need to carry full insurance coverage on the car, including collision coverage. You are also responsible for repairs to the car, including things that are not covered under warranty, as well as “consumable” things such as tires, wiper blades, oil changes, etc.

The beauty of a car lease is that at the end of the lease, you turn in the car and can walk away. You don’t have the hassles of trying to sell it yourself, and can turn right around and lease a brand new car.

A car lease may be right for you but make sure you understand how a lease works and what the restrictions are so that it does not cost you more than a purchase would have!



Real Estate Professionals

Leasing equipment provides the lessee with all the following benefits of utilizing the equipment without having to pay the up-front costs or assuming the risk of ownership. A lease is one of the best ways for businesses to stay on top of the development curve. With so many new developments that occur (particularly in the technology areas) equipment leasing is less financially expensive.

Running a business means making sound financial decisions that improve the condition and quality of a business. Equipment leasing provides such a benefit along with:

1.    Minimal Cash Outlay

2.    Overcoming Budgetary Limitations

3.    Avoidance of Obsolescence

4.    Flexibility in Terms and Equipment

5.    Conservation of the Business’ Working Capital

6.    Increased Opportunities

7.    Tax Benefits

8.    Fast Applications

9.    100% Financing

The minimal cash outlay allows a business to conserve their own capital. A lease also provides for servicing equipment failures. When managing a large computer room, owning all the computer equipment would place not only the upfront cost of purchasing the equipment, but also maintenance and repair as needed. Businesses that conserve personal business capital and lines of credit can handle the more mundane day-to-day expenses and unexpected events.

Budgetary concerns over new equipment purchases can be circumvented through equipment leasing. Operating budgets tend to be more flexible than a capital budget. The lease terms can be as flexible as required and are often negotiable on an individual basis. Lease terms are usually much longer than a standard bank loan, which makes their payment terms even better.

The ability to upgrade remains one of the best benefits of equipment leasing. Businesses grow; technology changes and the needs of both can change year to year. Equipment leasing allows businesses to benefit from developments on both sides of the aisle. Lease terms may also be structured to handle these changing situations.

Considering this multitude of benefits for equipment leasing, it’s not surprising that more and more businesses are reaching out to lease their equipment rather than purchase it. The benefits of leasing are not limited to the computer industry or to large corporations. Small businesses can benefit even more from equipment leasing than a large corporation may.

In a contest of leasing versus buying, leasing wins most of the time. Imagine the small business that houses only two employees. Their working capital may afford a couple of PCs and some exterior accounts to host a website. When a PC in the office goes down, if they are not leasing they will need to replace the machine. In general, the cost of replacing a standard PC is significantly lower than repairing one.

Small businesses need the ability to remain flexible, to upgrade and to keep their machines in maintenance and up to date. Even more than their corporate big brother, they need to know they will remain on the cutting edge of the industry in order to make better business decisions. A small construction company that has no access to certain types of equipment will not be able to take on more challenging jobs. The graphic’s designer that doesn’t have the equipment to support the latest software will find himself or herself less competitive. An accountant that doesn’t have the disk space to maintain growing accounts will have to turn away business.

Leasing equipment makes sense on a variety of financial levels, but also on levels addressing future growth. The business that takes advantage of these benefits are planning two steps ahead of their own niche market and will likely avoid being trumped by their competition. So whether a business is large or small, thinking ahead provides them with opportunity. What is the best benefit a business can receive from leasing their equipment? Opportunity.

Albert Lindenberg

Canyon Leasing

Al.Lindenberg@CanyonLeasing.com



Rent Back Fast

Except in rare cases, a foreigner (a non Thai person) cannot acquire land ownership title in Thailand. As a result, leasing a plot of land for 30 years and registering this long term lease of land contract at the local Land Office is one of the ways known and practiced by foreigners.

 

 

Please note that I do not recommend a 30 years lease of land contract plus promises by landowner to renew the lease of land contract at the end of the 30 years. (This is explained in my article – Does a 90 years Lease of Land Exist in Thailand? published by Pattaya Mail newspaper on October 24, 2008) Foreigners are commonly advised to enter into a risky 30 years lease of land contract with promises by the landowner to renew the lease. However, these foreigners may not be aware that a lease of land contract can be made and registered for the lifetime of the foreign lessee.

 

 

Leasing land for the lifetime of the lessee or of the landowner is expressly provided by Section 541 of the Civil and Commercial Code:

 

 



“Lease contract can be made for the duration of the life of the lessor or of the lessee”

 

 

The lease will be registered as a lease for the lifetime of the foreign lessee. This registered right on the land or “real right” is binding on any third party for the lifetime of the lessee, this would include the landowner’s heir(s). In other words, no one, not even the landowner’s heirs, will have any rights over the leased land unless and until the lessee dies. A Land Office rule, effective since December 2008, confirmed that a lifetime lease registration made for the lessor’s (landowner) or for the lessee’s lifetime is only applicable to individuals or “natural persons”. The Land Office cannot proceed with the lease registration if the foreign lessee is a company, a partnership or any kind of juristic entity.

 

 

Tip

 

 

The lease registration fee payable at the Land Office is calculated based on the rental amount for the first 30 years lease period. The foreign lessee’s responsibility here is 50% of this fee, unless agreed otherwise between the landowner/ lessor and the lessee. Also, there is a stamp duty payable.

 

 

** Written by David Tan. David is a Lecturer of Business Law at Asian University and author of the book - A Primer of Thai Business Law, available online at www.chulabook.com . In Bangkok, the book is available at all Kinokuniya and Asiabooks bookstores. Any questions to David regarding land leases should be sent to blas.inter@yahoo.com

 





Sell and Rent Back

Auto finance is now different. It is now populated with all sorts of choices to help you purchase that auto of your dreams. Auto lease deals are one of the fastest growing areas.

An auto lease is a long-term rental agreement - terms typically start at 24 months with 36 and 48 months much more usual. Auto lease agreements do have a few twists to watch out for though.

As the name suggests, you don’t actually own the auto when you take out an auto lease. The leasing company owns the auto and then leases it to you. When the lease expires you return the vehicle. If you are within your agreed mileage target and the auto has suffered no worse than normal wear and tear then you can simply work away

As you don’t own the vehicle the lease company can sell it at the end of your contract. Your payments therefore depend on the difference between the buying price and the selling price. Lease companies spend a lot of time and effort to ensure they have a good idea of exactly how much each vehicle in their fleet will be worth at the end of the lease agreement.

So, suppose you find a auto for $20,000 purchase price. The lease company does some sums and tells you that if you take out a 3 year deal with a 12,000 mile per annum mileage limit they will guarantee a residual value of $8,000. The net cost to the auto leasing company is $12,000 plus administration charges (setting up the deal and selling the auto at the end) and finance charges.

You pay lease charges on the $12,000 difference.

The result is that you can drive a new auto for low upfront cost and relatively low monthly payments. The downside is that you never own the vehicle and may have nothing to show for all your payments at the end of the agreement.

Remember that residual value mentioned earlier? Well that gets interesting at the end of the lease period. Auto lease companies usually set this at the low end of expectations. If you stay within the terms of your lease the chances are that the auto will be worth more than the residual value. This means you have 3 choices: 1. Buy the auto for the agreed residual value 2. Part exchange the auto and use the extra value as the deposit on your next lease vehicle. 3. Give the keys back and get on with your life

The most common option taken by auto lease customers seems to be to part exchange and use the difference as the deposit on the next auto.

There are downsides to auto leasing. In the long run it will always be more expensive than buying through an auto loan.

Auto leasing deals are not for everyone. To manage their risks auto leasing companies put tight constraints on the deals they offer. Leases are for fixed period and it is practically impossible to exit a lease early. Calculation of residual values is highly mileage dependent so you may find any excess mileage payments are expensive. Nevertheless, if you want to drive a new auto, can guarantee to keep the vehicle for the full term of the lease, and can stick to the mileage limits in your agreement, leasing can be a great choice.



Rent Back

Deciding to lease a car is big decision. It is not an option for some as they prefer to own their vehicle. However for many it is a great option. They get to have a great new car, with sometimes lower payments then purchasing a vehicle, and they also get to get a new car every few years! There are many advantages and disadvantages with deciding to choose the lease option on a vehicle. However, there is a basic rule to leasing: Be responsible with your lease!

Leasing a vehicle is where you choose a vehicle and basically pay to borrow that vehicle for a certain amount of time. A lease agreement will be drawn up between you and the person(s) leasing you the vehicle. There are usually constraints and requirements put on the person “borrowing” the vehicle. Usually there is a restriction of miles to be used and if more are used you will be charged. The vehicle also should be returned in a acceptable condition, acceptable condition would be outlined in the lease agreement. Each lease agreement will be a little different. Make sure that you fully understand you lease agreement. This is the first step to being responsible with your lease.

You will need to take good care of your lease. Your lease agreement will most likely state that if there is excessive wear and tear to the vehicle inside or out you will be charged per damage. The lease will also dictate what they feel is excessive wear and tear. However, sometimes you cannot clearly determine what is or isn’t, or you may simply not have the time for figuring it out. Try to be responsible with your lease and prevent damage from happening. That way you will save yourself a lot of money upon returning your lease.

If damage does occur to the vehicle or if you unsure what is considered excessive wear and tear you can take your vehicle to an auto body repair shop for a lease return inspection. They will examine and evaluate your vehicle to determine the degree of damages. Once they determine what is considered excessive wear and tear, they can let you know. You can then choose to have them complete the repairs for you. Usually this is a great choice since independent repair shops usually charge less than the owner of your lease or dealerships would. Even though you pay a little bit, it will be less than what the owner could charge you. You do not have to get the work completed at the shop where you got the lease return inspection. However it is still good to know what to expect when returning your lease. And you can also consider it a second opinion away from the owner.

The bottom line is to take good care of your lease to avoid paying more money in the end. However if something does need to be repaired be responsible and get it repaired. There are many auto body shops who are qualified to work on leased vehicles!



Repossession