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Don't Neglect Maintenance On Leased Vehicle - March 03, 2007
Some lease customers assume that new cars are designed to run problem-free and maintenance-free for two or three years.
Most auto lease customers understand the importance of maintaining their vehicles.
It's one of the requirements of a standard lease agreement.
Lately, I've been hearing about some customers who have neglected to perform the required maintenance on their vehicles, and it has cost them money at the termination of their leases.
Here's a cautionary tale for those who might be tempted to avoid performing regular maintenance on their leased vehicles.
In 2003, Byron leased a luxury sedan for a three-year term. Throughout the lease, Byron put on 110,000 kilometres and had practically no maintenance done on the car.
In fact, his dismal maintenance record consisted of just two oil changes, as well as a tire rotation at the 50,000-km mark.
This hardly qualified Byron for any sympathy at the dealership at the end of the lease.
Byron made an assumption that more and more lessees appear to be making these days ? that it's okay to let their vehicle maintenance slide because they don't actually own their vehicles.
These lease customers believe they have no financial responsibility to their vehicles, other than their monthly payments. They assume that new cars are designed to run problem-free and maintenance-free for two or three years.
In addition to not maintaining his car, as he was obligated to do, Byron ignored a safety recall notice from the manufacturer on his vehicle. That's another no-no.
In Byron's case, the recall notice was to adjust the steering column mechanism. It was a mandatory notice, which meant that Byron had an obligation to bring his car to a dealership to have the defective mechanism fixed.
His failure to do so put himself, his family and other motorists at risk. In fact, Byron's negligence could have had serious consequences.
If Byron had been involved in a collision that resulted from the defective steering mechanism, it could have affected his insurance coverage.
When Byron returned his car to the dealership at the end of his lease, he faced some sobering news.
Although the car's interior and exterior looked clean, all was not well under the hood.
The dealership concluded, quite rightly, that vehicle neglect had caused excessive wear and tear.
The engine needed major work. The brake pads needed replacing. Repair costs alone amounted to $2,500. Plus, excessive wear and tear on the mechanical and drivetrain components lowered the vehicle's market value to the tune of $1,500.
On top of the unexpected repair and depreciation costs, Byron also had to pay $1,820 in excess mileage charges (which he expected to pay anyway).
In total, Byron had to pay the dealership $5,820 in extra charges to walk away from his lease. He wasn't happy about it, and he tried to negotiate his way out of paying.
But in the end, Byron owned up to his responsibility. He agreed that regular care and maintenance would have avoided this unpleasant outcome.
This type of situation is awkward for the customer and the dealership. Dealers want to lease or sell their customers new vehicles. How do you ask a customer to pay $5,820 in repairs, excess depreciation and kilometre charges in one breath, and then turn around and discuss new-car options?
All standard auto lease agreements stipulate certain conditions that must be met. One of these is the obligation for lessees to maintain their vehicles to the manufacturer's recommended specifications.
Regular maintenance usually includes such things as changing the oil and filter, inspecting belts and hoses, maintaining fluid levels and tire rotation.
New-car dealerships are the recommended repair facilities for all maintenance and repairs. Dealerships know your make and model better than anyone else, and they're equipped with the specialized training and the sophisticated tools to make any repairs.
If you receive a recall notice for your vehicle, do the right thing and make an appointment with your local new-car dealer.
I agree that recalls are an inconvenience. But, on the positive side, they don't cost you anything except an hour of your time, after which the vehicles will run better and more safely than before.
Ultimately, it's the lessee's responsibility to maintain the vehicle. Dealers are sometimes willing to forgive normal wear and tear, but if a vehicle has been neglected to the extent Byron's was, the dealership has little choice but to charge for the repairs and depreciation.
It's not fair that a dealership should underwrite the costs of repairs due to a lessee's negligence.
If you're driving a leased vehicle and it's overdue for maintenance, make an appointment with the service department at your new-car dealer. It will save you a lot of time, money and aggravation.
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