Spotting Deceptive Dealer Add-Ons: Understanding and Avoiding Hidden Costs in Lease Buyouts

For drivers nearing the end of their car lease, purchasing the leased vehicle often feels like a straightforward option. You’ve driven the car, taken care of it, and know its history well. However, many consumers find that the lease buyout process isn’t as simple as it seems. As dealerships increase efforts to upsell customers, they sometimes add unnecessary costs, or “add-ons,” to the buyout transaction. Knowing how to spot these deceptive add-ons can save you from paying hundreds or even thousands of dollars in unnecessary fees.

What Are Dealer Add-Ons in Lease Buyouts?

Dealer add-ons refer to additional services, fees, or “extras” that dealerships claim are required when you buy out your lease. While some add-ons, like taxes and title fees, are legitimate and required by law, others serve only to increase dealership profits without adding any actual value to the transaction. Here’s a look at some of the most common add-ons that dealerships may try to include in your lease buyout:

1. Extended Warranties: Dealerships may push extended warranties or service plans, claiming they are necessary for the car’s continued maintenance. However, these warranties are often overpriced, and in many cases, you may not need them if you’ve been maintaining the vehicle or already have coverage through the manufacturer’s warranty.
2. Gap Insurance: If you financed the vehicle, gap insurance can be helpful in certain cases, as it covers the difference between the car’s value and what you owe. But for a lease buyout, gap insurance is often unnecessary, especially if you’ve completed the lease term without any incidents. Some dealerships include this without informing you that it’s optional.
3. Pre-Delivery Service Fees: Since you’ve already driven the vehicle, pre-delivery fees are generally redundant. These fees are intended to cover cleaning or light maintenance, but if you’ve maintained the vehicle, this charge is usually unwarranted and can be challenged.
4. Document and Processing Fees: While some level of documentation fee is common, dealerships often inflate this charge. Since the paperwork required for a lease buyout is typically minimal, excessive processing fees are often a red flag that the dealership is padding the cost.
5. Certification or Inspection Fees: In some cases, dealerships charge a certification or inspection fee for pre-owned cars, claiming it’s necessary to certify the car’s condition. This may be true for other used cars, but if you’ve been driving the car throughout the lease and have maintained it, an extra certification charge can be unnecessary.

How to Spot Unnecessary Add-Ons

Understanding which fees are necessary and which are not can empower you during the lease buyout process. Here are some tips for identifying unnecessary add-ons:

1. Review Your Lease Agreement: Go back to your original lease agreement and look at what was initially outlined for your lease buyout. Any fees not mentioned in the lease may be optional or excessive.
2. Ask for an Itemized Breakdown: Request an itemized bill that lists each fee. This allows you to see exactly what you’re being charged for and gives you leverage to question or negotiate specific charges.
3. Research Common Fees: Take some time to research average lease buyout fees in your state, especially any additional costs that are legally required, such as title and registration. If the dealership is asking for fees far beyond these norms, there’s a good chance you’re dealing with add-ons.
4. Know Your Rights Under the Consumer Leasing Act: The Consumer Leasing Act (CLA) mandates that all fees should be disclosed at the beginning of the lease. If the fees you’re seeing aren’t in your original lease agreement, they may be illegal or unnecessary.
5. Be Willing to Walk Away: If the dealership won’t budge on certain add-ons, consider going to a different dealership or negotiating a more favorable buyout. In many cases, dealers rely on the consumer’s willingness to comply rather than lose the sale.

Steps to Take If You’re Facing Deceptive Dealer Add-Ons

If you find yourself in a situation where the dealership is insisting on unnecessary add-ons, you have options. Here’s how to handle the situation:

• Negotiate: Politely but firmly push back on each itemized add-on. Explain that these fees were not disclosed in the original lease agreement and that you don’t consider them necessary.
• Document Everything: Keep copies of all communications, invoices, and documentation regarding the lease buyout. If you later need to take legal action, these documents will serve as valuable evidence.
• Consul an Attorney: If the dealership refuses to remove unnecessary fees, contact a lawyer.

How Baron, Herskowitz, and Cohen Can Help

If you’re facing unnecessary add-ons or fees during your lease buyout, Baron, Herskowitz, and Cohen is here to help. We specialize in protecting consumers from unfair practices and understand the deceptive tactics dealerships use to inflate buyout costs.

Our team can assist you by providing:

• A Free Case Evaluation: We’ll review your lease agreement and itemized fees to determine if any charges are unlawful or unnecessary.
• Legal Representation: If a dealership is charging fees not included in your lease, we will take action on your behalf, seeking reimbursement and protecting your rights.
• Knowledge of Consumer Leasing Laws: With extensive experience in these cases,  our attorneys are equipped to challenge illegal add-ons and ensure you aren’t overcharged.

Don’t let deceptive dealer add-ons stand in the way of a fair lease buyout. Contact us today for your free consultation and let us help you secure a transparent and just transaction.