1. Early Termination Fee: Many lease agreements include an early termination fee, which is a flat fee charged by the lessor for breaking the lease before its natural expiration. This fee can vary in amount and may be a significant cost.
2. Remaining Lease Payments: Depending on the lease terms, you may be required to pay the remaining lease payments even after returning the vehicle. These payments cover the remaining lease period, and you may have to pay the full amount or a prorated portion.
3. Lease-End Disposition Fee: When you end a lease early, you may be responsible for the lease-end disposition fee. This fee covers the costs associated with preparing the vehicle for sale or return to the lessor, such as cleaning, repairs, and transportation.
4. Mileage Penalties: If your lease includes mileage restrictions, exceeding the allowed mileage can result in mileage penalties. These penalties are usually charged per mile over the specified limit and can add up to a substantial amount.
5. Vehicle Condition Penalties: Upon returning the leased vehicle, you may be charged for any damages, excessive wear and tear, or missing equipment that exceeds normal usage. These penalties aim to restore the vehicle to its original condition and can vary based on the extent of the damage.
It's essential to carefully review the terms of your commercial auto lease agreement before making any decisions about early termination. Understand the specific penalties and costs involved to make an informed choice. Additionally, it's advisable to communicate with your lessor to explore options for resolving the lease early and potentially minimizing the penalties incurred.
