Can a Car Dealer Call and Ask You to Pay Damages After Returning a Lease Vehicle?

Many car lessees are surprised when they receive an unexpected call from a dealer or bank demanding payment for damages to the vehicle after they already returned the lease without mentioning any issues. This situation can be confusing and frustrating, but it's important to understand the potential consequences and your responsibilities as a leaseholder. In this article, we will explore the rights and responsibilities of both lessees and dealers, discuss acceptable damage levels, and provide guidance on how to handle such situations.

Understanding Your Responsibilities

In the car leasing world, the car is in your care during the lease term. If you return the vehicle with more exterior or interior damage than the typical 'normal wear and tear' can cover, you will be responsible for those damages. This principle applies whether you are dealing with a dealership or a bank.

Dealers and banks typically issue a letter requesting payment for the damages with a detailed explanation of the issue. Ignoring such a request can lead to severe consequences. Non-payment may result in the matter being sent to collections, impacting your credit report, and leading to higher future costs for loans and mortgages.

Distinguishing Between Acceptable and Unacceptable Damage

The acceptable level of damage varies depending on the specific terms of your lease agreement. Some dealerships have a policy that allows for minor scratches and dents, such as those that can fit inside a 1-inch circle, to be considered 'normal wear and tear'. However, any damage beyond these levels will be your responsibility.

While a salesperson at a GM dealership I worked at, they would often use a 1-inch circle as a measuring guide. They would ask if the vehicle was involved in an accident during the lease period. If any damage was visible and not reported, the responsibility could fall on the salesperson. For unreported, obvious damage, additional fees could be charged on the next new car purchase.

The Dealership’s Role in Damage Recovery

If a dealership purchases a car from a bank and finds significant damage that wasn't addressed during the lease return, they may demand that the vehicle be brought up to standard before selling it. Dealerships do not want to pay for unnecessary damages, as it impacts their ability to sell the vehicle for a higher price.

Therefore, if a dealership calls you demanding payment for damages that exceed normal wear and tear, it is an indication that they want to ensure the vehicle is in good condition for resale. In such cases, it's important to acknowledge your responsibility and address the issue promptly.

Giving Your Response

When faced with a demand for payment, it's crucial to approach the situation with maturity and responsibility. Acknowledge your responsibility and pay for the damages. Repeatedly ignoring the request can damage your credit score and lead to long-term financial consequences.

Maintaining a good credit score is essential for securing loans for future purchases, such as cars or houses. If you ensure that your credit report remains clean, you can avoid higher interest rates and more negative impacts on your financial future.

Conclusion

While it can be surprising to receive a call from a dealership or bank demanding payment for lease return damages, understanding your responsibilities and responding appropriately can help you avoid further complications. Keeping a clear record of any damages and addressing them promptly can ensure a smooth transition and prevent future financial issues.