Know what your lessor may charge before you turn the car in.

Returning a leased car: what counts as excess wear and tear, and what to fix first

What excess wear and tear means

When you lease a car, you agree to return it in a condition the lessor calls normal for its age and mileage. Anything beyond that is excess wear and tear, sometimes called excess wear and use. The Federal Reserve's consumer leasing guide puts it plainly: excessive wear and tear is wear that exceeds the standards stated in your lease agreement. It gives examples such as broken or missing parts, dented or damaged body panels, cuts, tears, burns or permanent stains in fabric or carpet, excessively worn tires, cracked or broken glass, and poor quality repairs.

Two things in that guide matter for everything below. First, the standards are the lessor's, written in or referenced by your lease, so there is no single national rule. Second, the Fed says any standards the lessor sets must be reasonable, and that state law may limit the charge to actual repair costs or a reasonable estimate of them. If you read only one document before turn-in, read the wear and tear section of your own lease and the lessor's current guide.

The credit card test and where it stops

Many lessors use a credit card as a ruler. Toyota Financial Services states that a standard credit card is 3 3/8 inches long and calls a single dent larger than a credit card excessive. Its Lexus guide, Mazda Financial Services and Mercedes-Benz Financial Services use the same idea. Mercedes-Benz describes it as damage that cannot be seen when a standard credit card is placed over it. Seats and trim follow the same rule at Toyota, Lexus and Mazda: a single cut, tear, burn or stain larger than a credit card.

The card test is a good first pass, but it is not universal and it is not the whole picture. Toyota's guide gives no number for scratches beyond severe ones where the paint is removed and the panel is exposed. Mazda counts a scratch or cluster of scratches that penetrates the paint and is larger than a credit card. Other lessors, including Ford Credit, GM Financial and Nissan, publish counts and inch limits instead. The sections below go lessor by lessor.

Lessor by lessor: what the published guides say

These are the numbers we found in guides that lessors publish. They change from time to time and your contract controls, so treat this as a map, not a promise. Where a lessor does not publish a number we say so, because a missing number is useful to know.

• Toyota Financial Services and Lexus: a single dent larger than a credit card (3 3/8 inches) is excessive. Wheel gouges greater than 1 inch are excessive. Seat and trim cuts, tears, burns or stains larger than a credit card are excessive. No tread number is published in the guide we read; it refers to exposed cords, sidewall damage and tires that fail the manufacturer's guidelines.
• Ford Credit (guide dated July 2024): up to 3 dents, dings or scratches per panel are acceptable when each is no more than 4 inches across. Up to 15 paint chips per panel. Wheel scratches and gouges up to 6 inches. Glass damage is acceptable only up to 2 chips or cracks per panel that each fit within a 1 inch circle. Heated windshields are excluded from that repair allowance. No tread number in the guide we read, but tires must have no exposed cords or belts and no sidewall damage or plugs. Spare tire and tire tools must be in their storage area.
• GM Financial: fewer than 4 dings per panel under 2 inches is normal; 4 or more, or several 2 inch dings, is excess. One dent of 4 inches or less per panel is normal. One scratch under 6 inches per panel is normal; 6 inches or more is excess. Tire tread must be at least 4/32 inch. Wheel scratches and gouges of 3 inches or less are normal. Holes in upholstery over 1/8 inch and tears of 1/2 inch or more are excess. Cracked glass of 1/2 inch or more or any spider crack is excess, as are missing keys and fobs and illuminated warning lights.
• Nissan: dents over 2 inches or 4 or more dents on any panel are chargeable. Scratches over 3 inches on painted panels and over 6 inches on bumpers and wheels are chargeable. Ten or more chips on one panel. Tread below 1/8 inch at the lowest point. A single windshield chip over 1/8 inch, or any chip in the driver's line of sight. Panel misalignment over 1/8 inch. Missing keys, remotes or a spare tire are chargeable.
• BMW Financial Services (as described on a BMW dealer's lease end page): dings under 2 inches are not charged and dings over 4 inches count as large. Minimum tread is 1/8 inch, measured at the thinnest point away from the wear bar. Run-flat tires must be replaced with run-flat tires. Any scratch, chip or crack in the windshield requires replacement. Non-working lights and cracked lamps are charged. Return both sets of keys, the owner's manual, tool kit and spare if equipped.
• Mercedes-Benz Financial Services: uses the credit card test for exterior damage. Its page does not list further numbers, so use the vehicle condition guidelines in your lease paperwork.
• Mazda Financial Services: credit card benchmark for paint, dents, wheels, seats and trim. Windshield cracks, stars or bull's-eyes, damaged lights and mirrors, tires with exposed cords or sidewall damage, and missing keys or accessories have no size limit.
• Honda Financial Services, Hyundai Motor Finance and Tesla: the pages we read did not state inch or tread numbers. Honda directs customers to their online account (End of Term) and the preliminary end of lease statement. Tesla points to its Excess Wear and Use Guide. Hyundai's Canadian page points to an excess wear and tear guide and a self-evaluation card that arrives about four months before lease end. If you lease one of these, use the guide in your lessor's portal.

Tires: 4/32 inch, 1/8 inch and how to measure

Tread depth is where lessors differ most, and it is easy to get wrong. GM Financial's minimum is 4/32 inch. Nissan and BMW use 1/8 inch, which is the same as 4/32. The Federal Reserve notes that excessively worn tires are often defined as 1/8 inch of tread at the shallowest point. Kelley Blue Book advises replacing tires if less than an eighth of an inch is left. Ford and Toyota do not publish a number in the guides we read, so check your own lease. A simple rule is to treat 4/32 inch (1/8 inch) as the floor and 5/32 inch or more as comfortable.

Measure with a tread depth gauge, which costs a few dollars. Take readings in the lowest groove on each tire, on the inside, middle and outside of the tread, and record the lowest number. If you only have a coin, a quarter placed upside down in the groove is a rough check: if the top of Washington's head is covered, you have at least 4/32 inch. Remember that tires wear while you drive. A tire at 5/32 inch today could be under the line by the time of the inspection.

Also check what is on the car. BMW charges tires that are not equal in size, quality and speed rating to the originals, and requires run-flats to be replaced with run-flats. GM lists mismatched tires, or tires that differ from the original size and speed rating, as excess. Kelley Blue Book suggests getting the dealer's tire quote first and then comparing a local shop quote that includes mounting, balancing and disposal.

Dents, dings and scratches

Body damage is the most common source of surprise charges. The thresholds above differ in two ways: by size (a credit card, 2 inches, 4 inches) and by count per panel. A car with several small dings on one door can fail a count rule at Nissan or GM while passing a size rule at Toyota. That is why the report matches your photos to your lessor and not to a generic standard.

Photos make size estimates hard, so the shot list asks for each damaged area twice: once from a step back to show where it is, and once close up with a credit card or ruler beside it. Take photos in even daylight or open shade, because direct sun and glare hide scratches and make shallow dents look deeper. Wet the area or wait for a clean, dry panel; a dirty panel can make a scuff look like a scratch and the reverse.

Whether a scratch is surface or through the paint matters. BMW describes surface scratches that buff out as acceptable, while paint breaks over 2 inches are not. Mazda counts scratches that penetrate the paint. A fingernail test helps: if your nail catches in the scratch, it is probably through the clear coat. Kelley Blue Book notes that paintless dent repair works only when the paint is not broken.

Glass, lights and wheels

Glass rules are strict. BMW says any scratch, chip, crack or scar in the windshield requires replacement. Nissan charges a single chip over 1/8 inch or any chip in the driver's line of sight. Ford accepts up to two chips or cracks per panel within a 1 inch circle, and heated windshields are excluded from that allowance. GM treats cracked glass of 1/2 inch or more, or any spider crack, as excess. Toyota, Lexus and Mazda list windshield cracks, stars or bull's-eyes without a size.

Check with your insurer first, as BMW's page suggests, because your policy may handle glass differently from other damage. On newer cars, replacing a windshield may also require recalibrating driver assistance cameras, which makes a replacement costly. Kelley Blue Book advises original factory glass for those cars. A small chip repaired early is usually far cheaper than a replacement later.

Wheels are measured differently at each lessor. Toyota and Lexus charge wheel gouges over 1 inch. GM allows scratches and gouges of 3 inches or less. Nissan charges over 6 inches combined on wheels and bumpers. Ford allows scratches and gouges up to 6 inches. Curb rash is cheap to fix at a wheel repair shop compared with a dealer wheel replacement, so wheels are often the best candidate for repairing before turn-in. Also check headlights, tail lights and mirrors: cracked or non-working lights are charged by BMW, GM and others.

Missing items, modifications and warning lights

Lessors charge for what is missing, often at replacement prices, and these items usually have no size limit. Common ones are keys and fobs (all of them), the owner's manual, floor mats, the spare tire and tire-changing tools, cargo covers and other original or dealer-installed equipment. Ford lists all keys and fobs, all original and dealer-installed equipment, and the owner's manual. BMW asks for both sets of keys, service records, the tool kit and, on some models, the cargo cover. Tesla says to bring both key fobs and the mobile charging bundle.

Aftermarket changes need to come off. Tesla says aftermarket parts and modifications, including changes to factory window tint, must be removed or additional fees may apply. BMW requires non-BMW items to be removed and any holes repaired. Mazda lists modifications that were not on the car at lease start as chargeable.

Also look at the dashboard. GM lists illuminated warning lights and messages, mechanical defects and cracked headlights as excess. BMW says active service indicators or warning lights may result in charges. Overdue maintenance can also lead to a bill: the Federal Reserve says to be prepared to document that required service was done, and that you do not necessarily have to use a franchise dealership. Keep your oil change and service receipts together.

Mileage overage math

Excess mileage is its own charge, separate from wear. Your contract states an allowance for the full term, for example 36,000 miles over three years, and a rate per mile over it. Kelley Blue Book gives an example of 20 cents per mile, so 10,000 miles over costs $2,000. Your rate may be higher or lower, so use the one in your contract.

The formula is simple: odometer at turn-in, minus the odometer at lease start, minus your allowance, times your rate per mile. Use the allowance for the whole term, not per year, and check whether your lease has a starting mileage above zero or a buy-down of extra miles. For example, 38,400 miles used against 36,000 allowed is 2,400 miles over, and at 20 cents that is $480.

The mileage keeps growing until you hand the car in, so work out the number using the odometer on the day you plan to return it, not today's. Santander's Tesla lease guide also notes that unused miles are not credited or refunded. If you are going to be close, ask your lessor what the cost per mile is and whether buying the car or moving into a new lease from the same brand changes anything.

Repair first or pay the charge?

Lessor charges are often higher than a local shop would charge for the same repair, which is the reason a pre-return repair can pay off. Autotrader says to use a local body shop for bumpers, replace worn tires yourself instead of accepting the automaker's tire charges, use paintless dent repair for small dents and get multiple estimates before deciding whether to repair now or pay at lease end. Kelley Blue Book adds that independent wheel repair services can be cheaper than the dealer, and some come to you.

A practical way to decide is to compare three numbers for each item: the likely charge, the repair cost with a quote from a local shop, and the chance that the item is not charged at all because it is within the limits. If the repair is cheaper than the likely charge and the damage is clearly over the limit, repair it. If the damage is well inside the limit, leave it. If it is close to the limit, the risk is the deciding factor, and paintless dent repair is a low-cost way to remove the doubt.

Some repairs are not worth doing. A poor repair can cost more than the original damage; the Federal Reserve lists poor quality repairs as a reason for charges, and Kelley Blue Book warns that a shoddy do-it-yourself job can cost more to correct than the first scratch. Use a shop that can match paint, and keep the receipts. Toyota Financial Services says that if you repair the car after an inspection you should notify them, and another inspection will be ordered at return. Tesla says to keep the receipt if you repair after submitting the inspection.

The timeline: pre-inspections and invoices

Most large lessors offer a free third-party inspection before turn-in. Timing differs: Toyota says to schedule it 15 to 60 days before return and calls it complimentary and optional. GM Financial suggests about 2 to 4 months before lease end and describes it as complimentary. Nissan says to request it up to 60 days before lease end. Honda Financial Services says inspections should be scheduled 2 months before the lease ends so you have time for repairs, and that a free inspection can be booked at the 60-day mark. Hyundai's Canadian page says AutoVIN inspects within 60 days before the end and posts the report about 48 hours later.

Mercedes-Benz Financial Services says its return process starts about four months before maturity, with a complimentary pre-inspection by OPENLANE at a place you choose. Tesla contacts customers 30 to 60 days before maturity, and the Santander Tesla guide describes a free pre-return inspection between 10 and 90 days before the end. BMW's dealer page says a Ding-O-Meter mailing arrives 90 days before maturity.

After turn-in, a final inspection sets the actual charge. Mercedes-Benz says charges are based on the final third-party inspection at turn-in. GM says the lease end invoice arrives 30 to 45 days after return. Santander says Tesla invoices come about 30 days after return, and Tesla says end-of-term charges appear in its app within two business days. Skipping the pre-inspection does not remove the charge: Toyota says one will be ordered at turn-in if you do not do one earlier.

A good order of work is to take your own photos and read your lessor's guide about four months out, book the pre-inspection, compare its report to your own, repair what is worth repairing, and photograph the car again on the day you hand it over.

How to photograph your car for turn-in

A good set of 20 to 40 photos takes about 20 minutes. Wash the car first, because dirt hides damage and invites argument. Park outside in even light, and turn off the camera flash. Do not edit the photos, and keep the original files so the date and time stored by your phone stay with them.

• Four corners of the car, from about 10 feet away, and both sides straight on
• Every panel in turn: hood, roof, trunk or tailgate, each door, each fender, front and rear bumpers
• Every dent, scratch and chip, once from a step back and once close up with a credit card or ruler beside it
• Each wheel, face on, plus a close-up of any curb rash
• Each tire: tread, sidewall, and the number on your tread gauge
• Windshield, rear and side glass, including the area behind the mirror and any chips
• Headlights, tail lights and mirrors
• Front seats, rear seats, door panels, carpet and floor mats, headliner, and the cargo area
• Dashboard with the car on, showing no warning lights, and the odometer
• All keys and fobs, the owner's manual, spare tire and tools laid out together

The photo record and why a date matters

A dated record is useful if a charge looks wrong. Most phones store the date and time inside each photo file. If the lessor later bills you for a dent, you can show what the car looked like on the day you returned it, and compare with the inspection report. A record is not proof of anything on its own, and a lessor is not obliged to accept it. It simply gives you something concrete to point at when you ask questions.

Take photos on the day of turn-in as well, ideally at the dealership or return location, and ask for the inspection report or a copy of the condition form before you leave. Keep your repair receipts, the pre-inspection report, your lease contract and the photos together in one folder, on your phone and a second place such as email or cloud storage.

Waivers, protection plans and when you disagree

Some brands reduce or cancel charges if you stay with them. Honda Financial Services lists a $500 waiver for customers who buy or lease another new Honda within 30 days of turn-in, with total waivers capped at $1,000. Mercedes-Benz Financial Services credits excess wear and use charges up to $500 on a new Mercedes-Benz and a turn-in fee credit up to $595. Mazda says leases after January 27, 2026 have excess wear and use charges waived up to $500, except for missing equipment such as keys. BMW waives its disposition fee if you lease or finance your next BMW through BMW Financial Services. Kelley Blue Book also mentions a disposition fee of about $350 for a simple return and notes that it should generally be waived when you buy another car from the same lessor. Offers change, so read the terms.

If you bought wear protection with your lease, find the contract. It will state which items it covers and the dollar limits. If a charge looks wrong, start with the inspection report: ask for photos of each charged item and the page of the guide it relies on. Compare each item with your lease. The Federal Reserve says lessor standards must be reasonable and that state law may limit the charge to actual repair cost or a reasonable estimate. If you cannot settle it with the lessor, your state attorney general or consumer protection office can tell you what options exist. This page is general information, not legal advice.

Sources

• Toyota Financial Services: Excessive Wear and Use guide
• Toyota Financial Services: Lease End Guide
• Lexus Financial Services: Excessive Wear and Use Guide
• Ford Credit: Excess Wear and Use (July 2024)
• GM Financial: GMC 2026 Lease End Guide
• GM Financial: wear and use guidelines
• Nissan: Wear and Use Guide
• Mazda Financial Services: wear and use
• Mercedes-Benz Financial Services: lease return
• BMW lease end process (BMW of San Antonio)
• Honda Financial Services lease end guide (Bianchi Honda)
• Hyundai Motor Finance Canada: vehicle inspection
• Tesla: lease-end options
• Santander Consumer USA: Tesla Lease End Guide
• Federal Reserve: More Information About Excessive Wear-and-Tear Charges
• Federal Reserve: Wear and Tear (consumer leasing guide)
• Kelley Blue Book: Car Lease Return Quick Facts
• Autotrader: Quick Facts About Car Lease Damages
• Dealership Guy: off-lease inventory (Manheim Used Vehicle Index, Cox Automotive)