Wear and Tear in Car Leasing: What’s Considered Normal and What Will Cost You Extra?

Wear and tear refers to the natural deterioration of a vehicle over time due to regular use. Even if you take great care of your car, minor damage is inevitable. This includes small scratches, minor dents, and material wear.

Vehicle wear and tear can be classified into two categories:

• Cosmetic wear, which affects the car’s appearance (scratches, dents, stains, fading, and upholstery wear).
• Mechanical wear, which includes tire tread wear, brake degradation, and suspension component deterioration.

While a certain level of wear is expected, anything beyond the leasing company’s predefined limits is considered excessive wear and may result in additional charges.

Table of Contents:

• What is considered normal wear and tear?
• What qualifies as excessive wear?
• Examples of Excessive Wear and Tear
• Standards for vehicle wear and tear
• Consequences of excessive wear in leasing
• How vehicle wear is assessed
• The required condition for returning a leased vehicle
• What types of damage will you have to pay for?
• How to properly return a leased car at the end of the term
• Tips to minimize vehicle wear and tear
• How to reduce penalties for excessive wear
• What to do if your car has excessive wear and tear

Excessive wear and tear on a leased vehicle can lead to extra charges when returning the car at the end of your lease. The dealer will charge a fee to restore the vehicle to an acceptable condition, with the exact amount determined by a professional inspection.

To minimize wear and tear, practice careful driving, perform regular maintenance, and address any necessary repairs promptly. Avoid eating and drinking in the car, use floor mats and seat covers, and be mindful when parking to prevent dents and scratches.

In this article, we will explore what qualifies as normal wear and tear, what is considered excessive, how damage is assessed, and what financial consequences drivers may face for excessive wear.

What Is Considered Normal Wear and Tear?

Normal wear and tear refers to minor signs of daily use, exposure to weather conditions, and other factors that naturally occur with regular driving. This type of wear is considered acceptable and expected throughout the lease term.

When wear and tear go beyond these normal limits, the lessee becomes financially responsible for repairs. Understanding what qualifies as normal wear is essential for distinguishing between expected aging and damage caused by accidents, negligence, or intentional harm.

Examples of Normal Wear and Tear

Normal wear includes surface-level imperfections that do not impact the vehicle’s overall appearance or functionality. These may appear on both the exterior and interior of the car:

• Exterior wear: Minor scratches, small dents, light scuff marks, and minor paint chips.
• Interior wear: Slight seat and carpet wear, small stains, minor dashboard scratches, and surface blemishes.
• Mechanical wear: Moderate tire tread wear and brake wear within acceptable limits.

Below is a table outlining examples of acceptable vs. excessive wear: 

Key Considerations

Only cosmetic imperfections are considered normal wear and tear. These minor flaws typically result from everyday use, such as small impacts from:

• Neighboring car doors in parking lots
• Shopping carts
• Tree branches or road debris

Interior wear is also influenced by friction, sun exposure, and regular use of the car’s surfaces. 

Understanding these distinctions can help lessees avoid unexpected charges when returning their leased vehicle.

What Qualifies as Excessive Wear and Tear?

Excessive Wear and Tear (EWT) refers to any damage that goes beyond what is expected from normal use of the vehicle. It includes visible deterioration of the car’s paint and body (deep scratches, large dents, evidence of poor repairs), interior damage (torn upholstery, large stains, deep cuts on the dashboard), and significant mechanical wear (cracked glass, broken headlights, heavily worn tires, and more).

The lease agreement outlines acceptable wear and tear standards for the car's interior, exterior, and mechanical components. If the wear exceeds these limits, the lessee is financially responsible for repairs at the end of the lease term. A certified inspector determines the extent of the damage and the repair costs during the lease-end inspection.

Examples of Excessive Wear and Tear

Leasing companies expect you to maintain the vehicle in good condition throughout the lease period. Any damage that significantly affects resale value or drivability is considered excessive. 

Leasing Standards for Acceptable Wear and Tear

The lease agreement specifies acceptable wear levels for tires, body condition, and interior materials. While exact definitions vary by leasing company, most agreements include Excessive Wear and Damage (EWD) policies that cover:

• Damaged or tinted glass and mirrors
• Structural body damage (cracked bumpers, broken headlights, bent fenders, damaged handles)
• Deep scratches or dents
• Torn or heavily stained upholstery
• Burn marks, rips, or large stains on seats or carpets
• Poor-quality repairs (mismatched paint, uneven panel gaps)
• Missing parts (hubcaps, jack, spare tire, keys)
• Unauthorized modifications (stickers, aftermarket body kits, different wheels)
• Tire tread below 1/8 inch at the lowest point
• Any mechanical damage affecting safety or drivability

Additionally, lack of routine maintenance or attempting to conceal damage may result in additional lease-end penalties. Proper care and adhering to the leasing company’s guidelines can help minimize costs when returning the vehicle.

Consequences of Excessive Wear and Tear in a Lease

Excessive wear and tear on a leased vehicle can result in financial penalties for the lessee. When returning the car at the end of the lease term, a leasing company representative will conduct a damage inspection. Any excessive wear beyond the lease agreement’s standards will lead to additional repair costs, increasing the total cost of the lease.

Some leasing agreements include a security deposit that may be applied toward excess wear fees. However, if the damages exceed the deposit, you will be responsible for paying the remaining balance.

This means that a lease offer with low monthly payments can become unexpectedly expensive at the end of the lease term, even when you've chosen the best offer at the time of the deal. Additionally, significant damage can negatively impact your leasing history, potentially affecting approval for future leases.

How Is Vehicle Wear and Tear Assessed?

Assessing wear and tear involves a detailed inspection of the vehicle’s exterior, interior, mechanical condition, and maintenance records to determine if it meets acceptable return standards.

A trained leasing inspector evaluates the following areas:

• Exterior: Scratches, dents, paint damage, glass condition, tires
• Interior: Upholstery condition, dashboard wear, stains, odors
• Mechanical Systems: Brake wear, suspension issues, engine performance
• Documentation: Service records, accident history, unauthorized modifications

The purpose of this inspection is to determine the extent of wear and tear and assess how much the vehicle’s condition has deviated from the expected resale value. This distinction between normal and excessive wear helps determine any additional fees the lessee may owe. 

How Does Your Vehicle Measure Up?

Each leasing company has its own guidelines for assessing wear and tear. However, most use simple measurement tools like a quarter, credit card, or ruler to determine whether damage is within acceptable limits or requires additional charges. 

Common Wear and Tear Measurement Standards:

• Tire tread depth: If a 1/8-inch marker (about the height of a quarter’s edge) is visible in the shallowest part of the tread, the tire is excessively worn.
• Scratches, chips, and dents: These should be no larger than 2 inches in diameter to be considered normal wear.
• Interior stains, cuts, or burns: Any damage larger than 1/2 inch is considered excessive. This applies to seats, carpeting, headliners, and glass.
• "Credit Card Test" for Scratches: If a scratch or dent can be completely covered by a standard credit card, it’s typically acceptable.

What You Are Responsible For

The following table outlines typical lease-end damage assessments used by inspectors to determine acceptable vs. excessive wear and tear: 

Why This Matters

These guidelines help lessees understand acceptable damage levels before returning a leased vehicle. By reviewing your leasing company’s specific wear-and-tear policy, you can assess whether your car’s condition meets return standards and avoid unexpected fees at lease-end.

What Condition Should You Return a Leased Vehicle In?

Manufacturers and dealerships account for normal wear and tear in lease agreements. However, excessive damage, high mileage over the agreed limit, poor maintenance, or unauthorized modifications can result in additional fees at lease-end. While you have the option to fix damages or replace broken parts yourself, there is still a chance the leasing company may charge you for further repairs. 

Acceptable Wear and Tear

When returning your leased vehicle, it should meet reasonable wear standards, including:

✅ Minor scratches on headlights, taillights, and wheels.
✅ Small interior stains, light carpet wear, or minor upholstery tears.
✅ Mileage within the agreed lease terms.

Additionally, you must provide proof of regular maintenance, including oil changes and required services. The dealership will also expect you to return:

• All original documentation (owner’s manual, maintenance records, etc.).
• Spare keys and key fobs.

When Will You Be Charged Additional Fees?

You will face extra charges if the vehicle has:

🚨 Broken or missing parts (e.g., a missing remote key, damaged trunk lid, non-working sunroof, or missing EV charging cable).
🚨 Non-functional equipment (e.g., malfunctioning electronics, non-operational sensors, or broken safety features).
🚨 Unauthorized modifications, including:

• Suspension alterations.
• Custom paint jobs, decals, or drilled holes.
• Window tinting that doesn’t comply with regulations.
• Engine or fuel system modifications.

Tire Replacement Rules

If you need to replace a tire, it must match the original manufacturer’s model and specifications. Leasing companies often require that all four tires be replaced together, even if only one or two are excessively worn. 

How to Avoid Unexpected Fees

To ensure a smooth return process, follow the wear and tear checklist provided by your leasing company. Addressing issues before the inspection can help you avoid costly end-of-lease charges and make the return process quick and hassle-free.

Steps to Take Before Returning Your Leased Vehicle

Returning a leased vehicle requires careful preparation to avoid unexpected fees. Follow these steps to ensure a smooth and cost-effective return process:

1. Inspect Your Vehicle

✅ Check for Damage – Examine the car for dents, paint scratches, upholstery stains, or worn-out carpets. Repair significant damages before returning the vehicle.
✅ Verify All Equipment is Present – Ensure the original keys, spare keys, key fobs, user manuals, DVD system (if applicable), original wheels, and any leased accessories are included.
✅ Reinstall the Third Row of Seats (if removed) – Many drivers take out the third-row seats for extra cargo space but forget to put them back.

2. Clean the Car Inside and Out

✅ Perform a Deep Clean – Get a professional interior detailing or, at the very least, vacuum the seats and carpets and remove any stains with a cleaner.
✅ Wash and Wax the Exterior – A clean, polished car makes a good impression and helps inspectors focus on the vehicle’s actual condition rather than minor dirt or smudges.

3. Gather Necessary Documents

✅ Service Records – Bring proof of regular maintenance, oil changes, and scheduled services performed during the lease term.
✅ Lease Agreement – Review the contract to understand the leasing company’s return policies.

4. Obtain a Return Receipt

✅ Get a Signed Inspection Report – Ensure the dealership or leasing company provides a return receipt that includes:

• Vehicle condition (wear and tear assessment)
• Odometer reading
• Any additional charges (if applicable)

✅ Check for Accuracy – Review the mileage, damages, and other details to avoid disputes later.

5. Additional Steps to Complete the Return

Return All Keys and Equipment – Hand in all key sets and original accessories.
Sign the Odometer Disclosure Statement – This document is legally required when transferring a leased vehicle.
Check DMV License Plate Requirements – In some states, license plates must be returned after the lease ends. Contact your local DMV (Department of Motor Vehicles) for guidance. 

How to Minimize Lease-End Wear and Tear

To reduce excess wear charges and keep your leased car in good condition:

1️⃣ Drive Carefully – Avoid aggressive driving, potholes, and reckless parking to prevent dents, curb rash, and tire damage.
2️⃣ Follow Regular Maintenance – Stick to the manufacturer’s maintenance schedule, change the oil on time, and fix any mechanical issues promptly.
3️⃣ Protect Interior Surfaces – Use:

• Seat covers to prevent stains and tears.
• Rubber floor mats to protect carpets from dirt and spills.
• Sunshades to prevent dashboard and upholstery fading. 

4️⃣ Avoid Eating and Drinking in the Car – Spilled drinks and greasy food can leave stubborn stains and odors that may result in cleaning fees.
5️⃣ Document All Repairs and Maintenance – Keep records of oil changes, tire rotations, and any repairs to prove proper upkeep. 

By following these steps, you can minimize potential lease-end charges and ensure a hassle-free vehicle return.

How to Minimize Excess Wear-and-Tear Charges

To reduce lease-end fees related to excessive wear and tear, follow these proactive strategies:

1. Replace Worn Tires Before Returning the Car

🔹 If any tire has less than 1/8 inch of tread, replace all four to ensure even wear. Mixed front and rear tires may lead to additional charges.
🔹 Buying and installing new tires yourself is often cheaper than paying the leasing company’s replacement fees.

2. Fix Dents and Scratches Early

🔹 Dents larger than a quarter (1 inch in diameter) should be repaired before the return. Paintless dent repair (PDR) services are usually more affordable than what the leasing company will charge.
🔹 Any scratch longer than a credit card should be addressed. A local body shop can repair these damages at a lower cost.
🔹 Bumpers are closely inspected — fix cracks, deep scratches, or paint chips before returning the vehicle.

3. Address Windshield and Glass Damage

🔹 Cracks or chips on the windshield should be repaired in advance to avoid full replacement costs from the leasing company.

4. Protect Rims and Wheels

🔹 Use rim protectors to prevent curb damage, as scratched or bent wheels often result in high repair fees.

5. Spread Out Repairs Over Time

🔹 Fix damages as they occur instead of waiting until lease-end to avoid a large lump-sum bill.

Can Lease Wear-and-Tear Protection Help?

Some leasing companies offer wear-and-tear protection plans that cover certain damages beyond normal wear. However, keep in mind:

✅ It may cover repairs exceeding a minimum threshold (e.g., only if the cost exceeds $1,000 but not more than $5,000).
✅ It’s an extra cost — consider whether the potential savings justify the added expense. 

What to Do If Your Car Has Excess Wear and Tear?

If your leased vehicle has excessive damage, you have two main options:

1. Fix the Damage Yourself

• Take the car to a certified repair shop before lease-end.
• Keep receipts and documentation to prove repairs were done.

2. Return the Car As-Is (and Pay the Fees)

• The leasing company will send a bill based on an inspection report.
• However, they are not required to perform the repairs — they can simply charge you based on an estimated repair cost.

To avoid overpaying, request an independent third-party wear-and-tear assessment before returning the vehicle.

Final Lease-End Tips

📅 Get an inspection within 20 days of lease-end to allow time for repairs.
📷 Document the car’s condition with photos before returning it to prevent disputes.
💰 If applicable, you can opt to forfeit your security deposit instead of paying for repairs.

By handling wear-and-tear issues proactively, you can save money and avoid unexpected charges at the end of your lease. 

Wear and Tear

Nathan Brooks

I’m Nathan Brooks, a financial consultant and market analyst based in Austin with over 20 years of experience. I specialize in auto financing, including leasing and purchasing options. Passionate about cars and technology, I focus on helping people make informed financial decisions. Outside of work, I enjoy spending time with my family and exploring the world of automobiles.