For many people, leasing a vehicle offers flexibility and lower monthly payments. When it’s time to buy the car at the end of the lease, however, there can be unwelcome surprises—particularly in the form of added fees. One of these fees is the “pre-delivery service fee,” which some dealerships charge to “prepare” the car for sale. This fee is especially puzzling to lessees who have been driving the car for years and who may question what exactly needs preparation.
Let’s explore what a pre-delivery service fee really is, why dealerships charge it, and your rights under the Consumer Leasing Act if it wasn’t disclosed at the start of your lease.
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.
What Is a Pre-Delivery Service Fee?
A pre-delivery service fee is a charge that dealerships sometimes add at the time of a lease buyout. The fee is meant to cover the cost of preparing the car for sale, such as cleaning, inspecting, and doing minor maintenance. But because lessees have already been driving the vehicle and presumably maintaining it according to the lease agreement, the need for “preparation” is questionable. The fee often comes as a surprise, as many lessees feel that any preparation should have already been included in the lease payments they’ve been making all along.
Why Do Dealerships Charge Pre-Delivery Service Fees?
Dealerships may argue that pre-delivery service fees are necessary to prepare the car for resale or ensure it meets certain standards. However, in the case of a lease buyout, these fees can be excessive and seem more like a way to pad the final sale price rather than a legitimate service. In reality, some dealerships add these fees simply because they know the consumer has already invested years and money into the vehicle, and they assume the buyer will pay to avoid hassle.
Consumer Leasing Act Protections
The Consumer Leasing Act (CLA) protects lessees from hidden fees that were not disclosed at the time of the lease signing. Under the CLA, any fee related to a lease buyout must be clearly stated in the original lease agreement, including any pre-delivery service charges. If a dealership tries to add this fee at the buyout stage, you may have grounds to challenge it.
How to Challenge a Pre-Delivery Service Fee
- Check Your Lease Agreement: Look over your lease agreement to see if pre-delivery service fees were disclosed. If they aren’t listed, they may be illegal under the CLA.
- Request Documentation: Ask the dealership for an itemized explanation of the fee. You can then review this with a consumer rights attorney if necessary.
- Consult with a Consumer Protection Attorney: If the dealership refuses to remove the fee, an attorney can help you seek reimbursement, attorney’s fees, and possibly statutory damages.
When facing a lease buyout, remember that you have rights and protections. The CLA requires transparency from dealerships, and hidden fees like pre-delivery service charges may not hold up under scrutiny.
How Baron, Herskowitz, and Cohen Can Help
If you’re dealing with a pre-delivery service fee on a lease buyout and feel that it’s unwarranted, Baron, Herskowitz, and Cohen can help you protect your rights. Our firm has extensive experience in consumer rights cases, and we’re here to help you navigate any unlisted or excessive fees. Our team can review your lease agreement, advise on the legality of the charges, and take action to secure reimbursement or fair terms for your buyout. Don’t let hidden fees burden your lease buyout—reach out to Baron, Herskowitz, and Cohen for a free consultation on how we can assist.
