Florida Car Lease Buyout Lawyer

Hidden and Excessive Fees – The Lease Buyout Trap

When you lease a vehicle, your lease agreement typically specifies the purchase option price—the price you can pay to buy the car at the end of the lease term. This price is usually agreed upon when you sign the lease, along with any official fees, such as taxes or registration costs.

However, many consumers have reported being hit with additional, undisclosed charges when they attempt to exercise this purchase option. Some common fees that dealerships add at the time of the buyout include:

• Pre-delivery service fees: Even though the lessee has been driving the vehicle throughout the lease term, some dealerships charge a fee to “prepare” the car for sale.
• Document fees: These inflated fees are for allegedly processing paperwork, which often goes far beyond what is reasonable or necessary.
• E-filing fees: Charges for allegedly electronically filing documents, sometimes exorbitantly priced.
• Inspection or certification fees: Some dealerships tell you that they are required to inspect or certify the pre-owned process, even though the vehicle has been in your possession during the lease.

These charges can add up to thousands of dollars, far exceeding the purchase price disclosed in the lease agreement.

According to the Consumer Leasing Act, these extra fees are not lawful unless they were clearly outlined in your original lease.

Your Rights Under the Consumer Leasing Act

The Consumer Leasing Act (CLA) is designed to protect consumers from unfair leasing practices and hidden charges. Under the CLA, all fees related to the lease or lease buyout must be disclosed at the start of the lease. This includes any fees for exercising the purchase option, such as pre-delivery service charges or documentation fees. If these fees are not mentioned in the lease, the dealership has violated federal law.

Under the CLA, you could be entitled to:

• Reimbursement of improperly assessed fees: If the dealership has charged fees not listed in your lease agreement, you could demand that these be refunded.
• Attorney’s fees and costs: If you take legal action, the dealership may be required to cover your legal costs.
• Statutory damages: You may be entitled to additional damages, up to $2,000, if the dealership violated the CLA.

How to Take Action

If you face unexpected fees when buying out your lease, the first step is to carefully review your lease agreement. Look for any mention of the fees being charged—if they’re not listed, the dealership is likely in violation of the CLA.

Next, gather any documentation, such as invoices or receipts, that show the dealership has charged fees that were not disclosed. This will be crucial if you decide to pursue legal action.

Many consumers across Florida have successfully recovered thousands of dollars in unfair charges from dealerships that imposed hidden fees during lease buyouts. Whether it’s a pre-delivery fee, document fee, or a fabricated inspection cost, you have options to get your money back and hold the dealership accountable.

Hidden fees during lease buyouts are a growing problem, but you don’t have to accept them. The Consumer Leasing Act offers strong protections, requiring dealerships to disclose all fees upfront. If your dealership is charging undisclosed fees, you can take legal action to recover your money and prevent other consumers from falling into the same trap.

Our Florida Car Lease Buyout Lawyers Help You Fight Back Against Hidden Lease Buyout Fees

At Baron, Herskowitz, and Cohen, we specialize in protecting consumers from unfair and deceptive practices, including those involving hidden fees during lease buyouts. If you’re facing excessive or undisclosed charges when purchasing your leased vehicle, our experienced legal team of car lease buyout attorneys and staff can help you hold the dealership accountable.

Here’s how we can assist you:

1. Free Case Evaluation: We offer a complimentary review of your case to determine if the dealership has violated the Consumer Leasing Act by charging hidden fees.
2. Legal Representation: If your dealership has imposed unauthorized fees, we will file a claim on your behalf, seeking reimbursement for the improper charges. We’ll also pursue recovery of your attorney’s fees and other potential damages.
3. Expert Guidance: Our attorneys are well-versed in the Consumer Leasing Act and Florida’s state laws. We will help you navigate the complexities of your lease agreement and ensure your rights are protected.
4. Proven Track Record: We have successfully recovered significant amounts in compensation for clients who have been unfairly overcharged by dealerships.

Don’t let a dealership saddle you with unnecessary fees—We are here to ensure you receive a fair, transparent buyout process. Contact us today for your free case evaluation and take the first step toward reclaiming your rights and money.

A Closer Look at Hidden Fees in Your Car Lease

Car dealerships in Florida may sometimes charge hidden or unexpected fees during a car lease buyout, which can catch lessees off guard. Here are a few examples of how these fees may appear:

1. Disposition Fee

This fee is typically charged at the end of a lease if you return the vehicle, but some dealerships may also apply it when you purchase the vehicle through a buyout. The disposition fee is usually a fixed amount (e.g., $350 to $500) meant to cover the dealership’s cost of reconditioning and reselling the car. If you’re buying the car, the dealer may still try to charge this fee, even though you’re not returning the car to them.

2. Excess Wear and Tear Charges

When you’re leasing a car, the lease agreement typically includes a clause stating that you will be responsible for any excessive wear and tear. In a lease buyout scenario, some dealers might conduct an inspection and then apply hidden charges for things like minor dings, scratches, or tire wear that could be considered beyond normal use. These charges could add hundreds of dollars to the cost of the buyout.

3. Buyout Document Fees

Dealerships may charge additional fees for preparing or processing paperwork related to the lease buyout. These fees could include administrative charges or document prep fees, which may range from $100 to $500 or more, depending on the dealership.

4. Early Buyout Fees

Some leasing companies or dealerships may impose an early buyout fee if you choose to buy the car before the lease term ends. This fee is meant to cover the dealer’s cost of selling the vehicle early or the potential loss of revenue from the remaining lease payments. While this fee isn’t necessarily hidden, it may not always be clearly stated upfront.

5. Sales Tax or Registration Fees

While you might expect to pay sales tax on the purchase of the vehicle, some dealerships may try to include additional taxes or fees that were not disclosed upfront. For instance, Florida has specific regulations on how sales tax should be applied to a lease buyout, and if not explained clearly, it can be a source of confusion. Additionally, registration and title fees might be added without adequate transparency.

6. Gap Insurance or Extended Warranty Offers

Sometimes dealerships may offer “optional” products like gap insurance or extended warranties during a buyout. While these may be beneficial, they are often presented as almost mandatory, and the costs can be inflated if not properly reviewed. For example, a gap insurance policy might be sold to you at a much higher rate than through other providers.

7. Finance Charges

If you plan to finance the buyout (instead of paying cash), dealers might include hidden finance charges in the buyout offer. These could be higher than what you might get through a bank or credit union, and may not be clearly disclosed when you inquire about the buyout price.

8. Inspection Fees

Some dealerships require an inspection of the car to determine its condition before a buyout is approved. This inspection fee might be billed as a separate charge, sometimes with no clear prior warning. The fee could range from $50 to $200, depending on the dealership.

9. Environmental or “Documentary” Fees

These are fees that dealerships sometimes add to cover the costs of “processing” the paperwork related to the buyout. Florida allows dealerships to charge a documentary service fee, but the amount is capped. However, some dealers might try to disguise additional “environmental” or administrative fees that weren’t disclosed upfront, inflating the cost of the transaction.

10. “Marketplace” Fee

In some cases, dealerships may try to charge you a “marketplace fee” or “market adjustment” when buying out the lease, particularly if the vehicle’s market value has increased due to demand. This fee is essentially an attempt to capitalize on the vehicle’s perceived increased value, even though it’s not typically part of the lease agreement.

What to Watch For From Florida Dealerships:

• Ask for a detailed breakdown of the buyout price, including any additional fees that might be added.
• Review your lease agreement thoroughly before proceeding with a buyout to ensure you’re not being charged for something that should be waived.
• Be clear on taxes: Understand how sales tax is calculated for a lease buyout in Florida, as it can differ from the typical sales tax rate.
• Shop around for financing if you need it, as dealers often offer financing options that might not be the most competitive.

If you suspect you’re being charged hidden fees, always feel free to ask the dealership for clarification and negotiate the charges when possible! Importantly, our attorneys may be able to help you – we have years of experience protecting consumer’s rights. We offer free consultations and can review all lease documents. Call today at 305-670-0101.