The term, lease return, in car leasing, refers to the process of returning a leased car to the lease finance company at lease-end.

When a lease car is returned, it must be returned on the specified date, or earlier, to a dealer who sells the same make of vehicle. It doesn’t have to be the same dealer from which the vehicle was originally leased. The dealer accepts the vehicle on behalf of the lease finance company, the owner of the vehicle. The dealer may choose to buy the car from the lease company, or return it to them.

If the car has mileage overage, damages, or excessive wear-and-tear, as specified in the lease contract, the lessee will receive a bill from the lease company several days or weeks after the return. Part of that bill will also be a charge for the “disposition fee” (usually about $350) specified in the contract.

Lessees also have the option of purchasing their vehicle for the price stated in their contract. This avoids having to pay for damages or extra miles. Those who go for this option usually get a used-car loan to make the purchase.