Exercising a purchase option on a motor vehicle lease can be an exciting opportunity to own the car you’ve been driving for the past few years and can be one of the larger financial decisions you may make.
Because of that, it’s crucial to be diligent and well-informed to avoid improper car leasing fees or unexpected charges during the purchase option process. Keeping and reviewing the right documentation is one easy step to protect yourself and ensure a smooth transition from leasing to ownership. In this blog post, we will outline some of the documentation you should keep and review when exercising a purchase option on a motor vehicle lease.
- The Lease Agreement: The lease agreement is the primary document to review thoroughly before exercising a purchase option. Pay close attention to any provisions related to the purchase option, including fees, penalties, and expiration dates. Understanding your rights and obligations will help you navigate the process effectively. Generally speaking, car dealerships are supposed to adhere to the language contained within the lease agreement, and dealerships deviating from the purchase pricing disclosed in the lease agreement can violate the Consumer Leasing Act or other state laws.
- Purchase Option Provision: In most cases, the lease agreement contains a purchase option price provision that should appear towards the beginning of the lease. In some cases, a separate addendum or agreement may exist, specifically outlining the terms of the purchase option. Regardless, it is important to review this document carefully to understand the purchase price, any additional fees or charges, and any conditions or contingencies that need to be met. Ensuring transparency and clarity in this agreement is crucial to avoid surprises later on. Car dealerships deviating from this provision can also lead to violations of the Consumer Leasing Act or other state laws.
- Vehicle Inspection Reports: Before exercising the purchase option, it’s important for you as the purchaser to inspect the vehicle thoroughly. This is to avoid buyer’s remorse and to ensure you are getting what you are expecting to pay for. Review any inspection reports conducted at the beginning of the lease term with recent inspection reports to compare the condition of the vehicle. If you don’t have a recent inspection report, it may be wise to conduct a new inspection to assess the current state of the vehicle, ensuring that any damages or excessive wear and tear are documented. By doing so, you can evaluate your purchase decision.
- Mileage Records: Most lease agreements have mileage restrictions, and exceeding those limits can result in additional fees. Review your mileage records throughout the lease term to ensure you have stayed within the agreed-upon limits. If you are close to exceeding the mileage, consider adjusting your purchase decision accordingly to avoid excessive charges.
- Service and Maintenance Records: Maintaining regular service and maintenance records is essential throughout the lease term. Review these records to ensure that all required maintenance has been performed according to the manufacturer’s recommendations. This documentation will also help demonstrate that the vehicle has been properly cared for, potentially reducing any potential fees related to excessive wear and tear should you choose to not purchase the vehicle.
The attorneys at PKG are experienced in litigating and settling such CLA claims and have represented dozens of consumers for such cases throughout the United States. If you have been quoted illegal or unexpected car dealer fees or other purchase fees that are not covered in your lease, do not hesitate to contact us at info@pkglegal.com or at (561) 726-8444 for a free evaluation of your claim.