What Is a Lease Return?

Lease Return refers to the process by which a lessee concludes the leasing agreement and returns the leased vehicle to the lessor at the end of the lease term. During this process, the vehicle is typically inspected for wear and tear, and the lessee may have the option to either lease a new vehicle, purchase the leased vehicle, or explore other alternatives.

Explanation: As the lease term nears its conclusion, the lessee is obligated to return the vehicle in accordance with the terms specified in the lease agreement. The condition of the vehicle is assessed, and any excess wear and tear or mileage overages may result in additional charges. The lessee then has the choice to enter a new lease, purchase the current vehicle, or explore other options based on their preferences and needs.

Examples: Suppose you have leased a car for a period of 36 months, and as the lease term approaches its end, you decide to return the vehicle to the lessor. Before the actual return, the lessor may schedule a Lease-End Inspection to assess the condition of the vehicle. This inspection typically evaluates factors such as mileage, wear and tear, and overall maintenance.

If the vehicle meets the agreed-upon conditions outlined in the lease agreement, the return process concludes smoothly, and you may choose to lease a new vehicle from the same lessor. Alternatively, if you have grown attached to the current vehicle, you might explore the option of purchasing it, either through a lump sum payment (Buyout Price) or financing.