Q about Lease Return: Excessive Wear Warranty...to Buy or not?

[rickkapur]

Q about Lease Return: Excessive Wear Warranty...to Buy or not?

Decided on the 3.8L, RWD, Ultimate Lease.

In addition to the $400 disposition fees at the end of the lease, the dealer is giving an option of buying an Excessive Wear Warranty (covers up to $5000) for $695. As I have never leased a car before, I am not sure if this is normal; that they charge an arm/leg at lease return for Wear, or is this warrnty not a good investment?

My assumption is that if most of the folks here who have done any lease return, have had to pay $500 or more towards wear, then this $695 is well spent; else, it is waste.

Thoughts please?

Thanks

 

[DRS]

What if any exclusions are in the excessive wear insurance? Does it include tires that say have tread life below what is required at turn in? Chipped paint? Say your lease is 36k miles.. With the undersized tread depth (to save a few shekels for Hyundai with less rubber per tire) tires that come with the cars (8-9 32nds instead of 12-13 32nds), you likely have worn out tires by that point. You want to foot the bill for $1300 in tires (or more)? So, IF they cover tires, not bad deal.

 

[ksoze]

I suspect the exclusions make it not worth it. If you take normal care of the car, you should not be socked with charges at lease end. Most lease returns are fine, unless it was abused and the warranty would probably not apply then anyway. If it does need tires baldy at turn in, buy cheap ones.

 

[kn5owa]

Watch out for:

1. Property damage deposit -

2. "Redemption fee"

3. "Return paper processing fee"

And, you are at the mercy of the dealer when you turn the car in - but you can "forum shop" - i.e., go to different dealers. The limited manner in which you can get rid of a leased car is, in my opinion the biggest argument against leasing.

When I turned in a Ford Taurus, the nearest Ford dealer wouldn't even look at the lease contract - & wanted a $500 processing fee and a $500 "Ford Fee" (haven't quite figured that one out yet).
Went to a different dealer and had no probs.

Insurance: Look for the usual deductions and exclusions - in my opinion a rip-off.

 

[Dimitry]

Here's a good resource for this:

https://www.hmfusa.com/Data/Teamsite/HCA/HMF/img/lease-end/HMF_leaseend_kit.pdf

Effectively, it covers any damage that isn't above usual wear and tear. More specific information (for HMF leases) in the link above.

I wouldn't suggest it. Some manufacturers (Honda, Acura, when I had them) have a program that automatically covers up to 1500 in damage, up to 500 damage per instance, free of charge. Hyundai, unfortunately, does not.

 

[greekgeek]

Sounds like a high margin add on, would pass.