Cost example updated October 24, 2026
In the worked example below, returning the car costs $3,245: $2,000 for miles over the limit, a $395 return fee, and $850 for wear items. That is the bill at the end of the lease, separate from the monthly payments already made. The rest of the page shows where every dollar comes from, what each charge means in plain words, and what buying the car instead would cost in numbers.
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The worked return bill, line by line
Here is the example, with every input stated so you can check it: the car is 10,000 miles over its lease mileage limit, at $0.20 a mile; the flat return fee is $395; and the inspection lists three wear items, a dent at $350, wheels at $300, and a windshield at $200.
- Miles over the limit: $2,000 (10,000 miles x $0.20 a mile)
- Disposition fee (the flat return fee): $395
- Dent: $350
- Wheels: $300
- Windshield: $200
That totals $3,245 to hand the car back ($2,000 + $395 + $350 + $300 + $200). The wear items in this example add up to $850 ($350 + $300 + $200). The $395 return fee sits inside the usual $300 to $500 range. Your own bill will differ, your contract's per-mile rate, your miles over, and your car's condition decide it, but the shape of the bill does not change: it is the return fee, plus miles, plus wear.
Formula
The worked return bill, line by line, with every input stated. The car is 10,000 miles over its lease mileage limit, at $0.20 a mile: 10,000 times $0.20 equals $2,000 in miles. The flat return fee, the disposition fee, is $395. The inspection lists three wear items: a dent at $350, wheels at $300, and a windshield at $200, which add up to $850. That totals $3,245 to hand the car back: $2,000 plus $395 plus $350 plus $300 plus $200. The $395 return fee sits inside the usual $300 to $500 range.
Three scenarios, same $395 return fee and same $0.20 a mile rate in all three, so only the miles and the wear change. Clean return, $395: within the mileage limit and no wear items billed, the bill is the $395 return fee alone. Miles over, no wear items, $1,395: 5,000 miles over at $0.20 a mile is $1,000, plus the $395 return fee. Miles over plus wear items, $3,245: the worked example above, $2,000 in miles plus $395 return fee plus $850 in wear items. The gap between the clean return and the worked example is $2,850. Almost all of it is miles and wear, not the return fee itself. Mileage overage usually runs $0.10 to $0.30 a mile, so at the ends of the usual range, 10,000 miles over would be $1,000 at $0.10 a mile or $3,000 at $0.30 a mile, and the same miles over can swing the bill by $2,000 depending on the contract rate.
Buying the car instead is a different total. The buyout price starts with the residual value, the car expected value at the end of the lease, written into the contract when you signed. On the buyout example on this page, a residual value of $20,000 plus a purchase-option fee of $350, inside the usual $150 to $500 range, comes to $20,350 before sales tax and title costs. Sales tax and title costs are added on top and vary by state, so they are not in that $20,350. Side by side: returning costs $3,245 and the car goes back; buying it out costs $20,350 plus sales tax and title costs, and the car stays yours. When you buy the car out, the return fee, the mileage charge, and the wear charges do not apply, because you are keeping the car rather than handing it back.
Each charge, in plain words
The disposition fee: the flat charge for handing the car back
A disposition fee is a flat charge the leasing company adds when you return the car instead of keeping it. In plain words, it is the cost of taking the car in, checking it over, cleaning it, and getting it ready to sell again. It usually runs $300 to $500 and is written in your lease contract. Some leasing companies waive it if you lease or buy your next car from the same brand, that depends on the company, so check your contract. It is charged even if the car is in perfect shape, because it is about processing the return, not about damage.
Mileage overage: paying per mile over your limit
Most leases set a mileage limit, often 10,000, 12,000, or 15,000 miles a year. Miles over the total limit are billed at a per-mile rate printed in your contract, usually $0.10 to $0.30 a mile. The math is simple: miles over x your per-mile rate. At $0.20 a mile, 5,000 miles over is $1,000 and 10,000 miles over is $2,000. At the ends of the usual range, 10,000 miles over would be $1,000 at $0.10 a mile or $3,000 at $0.30 a mile, so the same miles over can swing the bill by $2,000 depending on your contract's rate.
Excess wear and tear: damage beyond normal use
Excess wear and tear means damage beyond what normal driving leaves behind for a car of that age and those miles. Small scuffs from everyday driving are normal use. Dents, cracked glass, torn seats, and tires worn below the required tread depth are the kinds of items an inspector can bill for. There is no single published price list for these items: the charge is the cost of fixing that item, and it varies by the damage, the shop, and the leasing company. That is why the dent ($350), wheels ($300), and windshield ($200) in the example above are example charges for one car, not rates you can count on for your car. Before the return date, most leasing companies offer an inspection, that inspection report is the list to work from, because it names exactly what will be billed.
Three scenarios, with the totals checked
Same $395 return fee and same $0.20-a-mile rate in all three, so only the miles and the wear change:
- Clean return, $395. Within the mileage limit and no wear items billed. The bill is the $395 return fee alone.
- Miles over, no wear items, $1,395. 5,000 miles over at $0.20 a mile is $1,000, plus the $395 return fee: $1,000 + $395 = $1,395.
- Miles over plus wear items, $3,245. The worked example above: $2,000 in miles + $395 return fee + $850 in wear items = $3,245.
The gap between the clean return and the worked example is $2,850 ($3,245 minus $395). Almost all of it is miles and wear, not the return fee itself. That is why the bill catches people off guard: the return fee is the smallest and most predictable part, while miles and wear are the parts that grow quietly over the years of the lease.
What buying the car instead costs, in numbers
The other path at lease end is the buyout: you pay to keep the car instead of returning it. The buyout price starts with the residual value. In plain words, the residual value is the car's expected value at the end of the lease, written into your contract when you signed. It is not changed by how many miles you drove or by dents, it was set at the start.
The buyout side in full, with a calculator for the contract own numbers, is on the lease buyout page.
Here is a buyout example with its inputs stated: a residual value of $20,000 plus a purchase-option fee of $350 (inside the usual $150 to $500 range) comes to $20,350 before sales tax and title costs. Sales tax and title costs are added on top and vary by state, so they are not in that $20,350, ask your leasing company for a payoff quote that includes them, because that quote is the full buyout price.
Side by side, for the examples on this page: returning costs $3,245 and the car goes back; buying it out costs $20,350 plus sales tax and title costs, and the car stays yours. Those two totals are not directly comparable like-for-like, because one leaves you without a car and the other leaves you owning one. When you buy the car out, the return fee, the mileage charge, and the wear charges do not apply, because you are keeping the car rather than handing it back. Both sets of numbers are on the table; the call is yours, based on your contract, your payoff quote, and what the car is worth to you.
What this page cannot pin down
Three gaps are stated here rather than filled with guesses. First, wear-item prices have no published standard rate card, the $350, $300, and $200 in the example are one car's charges, and your inspector's report is the only list that matters for your car. Second, the top of the per-mile range varies by source: some guides cite $0.10 to $0.25 a mile rather than $0.10 to $0.30, so your contract's printed rate controls. Third, sales tax and title costs on a buyout vary by state and are not included in the $20,350 buyout example above. If any of those numbers matters to your decision, get them from your lease contract and your payoff quote.
Calculation transparency
Scope. One worked return bill for one example lease, 10,000 miles over at $0.20 a mile with three wear items, plus the clean return and miles-only scenarios on the same inputs, and the buyout price for the same car. The bill at the end of the lease, separate from the monthly payments already made.
Rules and time period. Example car 10,000 miles over its lease mileage limit at $0.20 a mile; flat return fee $395; wear items dent $350, wheels $300, windshield $200, example charges for one car, not rates; mileage limits of 10,000, 12,000, or 15,000 miles a year are the common contract caps; buyout residual $20,000 plus purchase-option fee $350, before sales tax and title costs.
Scope and limitations. Educational estimate only. Wear-item prices have no published standard rate card: the $350, $300, and $200 in the example are one car charges, and your inspector report is the only list that matters for your car. The top of the per-mile range varies by source: some guides cite $0.10 to $0.25 a mile rather than $0.10 to $0.30, so your contract printed rate controls. Sales tax and title costs on a buyout vary by state and are not included in the $20,350 buyout example. Prices vary by car, shop, and city. Get a written quote for your own car before you decide.
Source links checked November 6, 2026. Figures: Disposition fee $300 to $500 and mileage overage $0.10 to $0.30 a mile, as carried in LeaseEnd end-of-lease guides and legal guides to lease-end costs, consistent with the Federal Reserve vehicle-leasing guide; purchase-option fee $150 to $500, as carried in legal guides to lease buyouts. The Federal Reserve vehicle-leasing guide is named only, not linked.
Primary sources: LeaseEnd, end-of-lease return costs explained; Lease vs buy; How your lease payment is built; Check your quote. How the numbers are calculated is written down on the methodology page, and every source is listed on the sources page.
Definitions
Disposition fee. The flat charge for handing a leased car back. It covers the leasing company cost of taking the car in, checking it over, cleaning it, and getting it ready to sell again. It usually runs $300 to $500 and is written in your lease contract.
Mileage overage. Miles over the lease limit, billed at a per-mile rate printed in your contract, usually $0.10 to $0.30 a mile. On this page, 10,000 miles over at $0.20 a mile is $2,000.
Excess wear and tear. Damage beyond what normal driving leaves behind for a car of that age and those miles. Dents, cracked glass, torn seats, and tires worn below the required tread depth are the kinds of items an inspector can bill for, at the cost of fixing them.
Residual value. The car expected value at the end of the lease, written into your contract when you signed. It is not changed by how many miles you drove or by dents, it was set at the start.
Purchase-option fee. A fee added to the residual value when you buy out the lease, usually $150 to $500. On this page, $350.
Buyout. Paying to keep the car instead of returning it: the residual value plus a purchase-option fee, plus sales tax and title costs. On this page, $20,350 before sales tax and title costs.
Questions people actually ask
What is a disposition fee?
A disposition fee is the flat charge for handing a leased car back. It covers the leasing company's cost of taking the car in, checking it over, cleaning it, and getting it ready to sell again. It usually runs $300 to $500, it is written in your lease contract, and it is sometimes waived if you lease or buy your next car from the same brand.
How much do extra miles cost when a lease ends?
Extra miles usually cost $0.10 to $0.30 for each mile over your lease limit. At $0.20 a mile, 5,000 miles over costs $1,000 and 10,000 miles over costs $2,000. Your own per-mile rate is the one printed in your lease contract.
What counts as excess wear and tear?
Excess wear and tear means damage beyond normal use for the car's age and miles. Small scuffs from everyday driving are normal use. Dents, cracked glass, torn seats, and tires worn below the required tread depth are the kinds of items an inspector can bill for, at the cost of fixing them.
Can I buy my leased car instead of returning it?
Yes, if your lease includes a purchase option. The buyout price starts with the residual value, which is the car's expected value at the end of the lease, written in your contract when you signed. A purchase-option fee, usually $150 to $500, plus sales tax and title costs, can be added on top, so the full buyout price is higher than the residual value alone.
What does a clean return cost at lease end?
The $395 return fee alone. Within the mileage limit and no wear items billed, the bill is the $395 return fee alone. Miles over and wear items are the parts that grow the bill, not the return fee itself.
Related: The end charges trace back to how the lease was built. See how your lease payment is built.
Related: Get the end charges in writing and check them. Check your quote line by line.
For next time: lease vs. buy, side by side
This page is about the bill at the end of a lease. If you are thinking about your next car, the lease vs. buy page compares leasing and buying from the start, and the lease vs. buy calculator runs the same comparison with your own numbers. The calculator on the homepage works out the five-year cost of owning a car outright.
Figures: disposition fee $300 to $500 and mileage overage $0.10 to $0.30 a mile, as carried in LeaseEnd's end-of-lease guides and legal guides to lease-end costs, consistent with the Federal Reserve's vehicle-leasing guide; purchase-option fee $150 to $500, as carried in legal guides to lease buyouts. Mileage limits of 10,000, 12,000, or 15,000 miles a year are the common contract caps. Your lease contract controls your own rates, the figures here are the usual ranges, not your contract.