A Lease Excess Wear and Tear Service Contract is an agreement typically offered by the dealership or a third-party provider to cover the costs of excess wear and tear on a vehicle that is leased. The contract is designed to protect the lessee from potential charges for damage or deterioration that exceeds the standard wear expected for the vehicle’s age and mileage at the time of lease return.
Key Benefits of a Lease Excess Wear and Tear Service Contract
- Coverage for Excess Damage: This service covers damages or wear that goes beyond what’s considered "normal" by the leasing company. This can include dents, scratches, windshield chips, tire wear, interior damage, and other cosmetic or functional issues that occur during the lease period.
- Minimized Lease-End Costs: At the end of the lease, the lessee may be charged for the excess wear and tear that is considered above normal use. The contract helps offset or eliminate these potential fees, providing peace of mind and reducing unexpected costs when returning the vehicle.
- Service Scope: The contract typically covers repairs up to a certain limit, either for specific types of damage or for a maximum dollar amount per item (e.g., covering up to $500 per wheel for damage). Each contract may have different conditions based on one of NAAG’s providers.
- Convenience: It can simplify the process when the lease term ends, as the service provider may directly handle or repair the damages, removing the need for the lessee to pay out-of-pocket or negotiate with the leasing company.
- Exclusions: Typically, the contract doesn’t cover major accidents, abuse, or negligence, and it might exclude issues like mechanical failures or major body damage that would require comprehensive repairs. It also won’t cover damages that occur after the contract ends.
- Optional: This contract is usually optional and is offered at the start of the lease. It can be a smart option for those who anticipate potential wear or are worried about future charges, particularly if they plan to drive more than average or have children/pets that may cause interior damage.
A Lease Excess Wear & Tear Service Contract helps protect lessees from paying large fees for damage deemed above normal wear, offering convenience and potential savings when returning the leased vehicle.
