It's the age-old debate -- leasing versus buying a car. For many drivers, leasing may seem to be the more affordable option. While there are some benefits, any damage to the car when it's returned can also result in an unwelcome dent to your wallet.

Peter Traicheff leased a 2007 Dodge Grand Caravan. When the lease expired he returned it to the dealership. Following an inspection he was told he owed $683 for scratches and wear and tear. He agreed to pay and thought that was it.

However, two months later he got a bill in the mail from Chrysler Financial saying he owed another $2,230 for a seized engine.

Traicheff told CTV News "I couldn't believe it. My wife drove the vehicle into the dealership when she dropped it off and it was working fine. To get a bill two months later that the van needs a new engine makes no sense."

Chrysler Financial told Traicheff it had concerns the oil had not been changed in some time and demanded paperwork to show proof of oil changes. Traicheff admitted he had not changed the oil in 14,800 kilometers before dropping it off but said he always made sure it was at the proper level.

"The oil was dirty but it was always full. I don't think dirty oil would lead to a seized engine."

When we contacted Chrysler Financial our calls were not returned. The company was purchased by TD Auto Finance last month and when it was, TD Spokesperson Kelly Hechler returned our call immediately.

"Because the proper process wasn't followed and the dealer didn't do the inspection in a timely manner…we are going to reverse the charges," Hechler said. 

The Traicheffs are off the hook and won't have to pay, but it's a lesson for everyone to do proper maintenance, keep your paperwork as proof and realize that when you return a leased car you could be hit with additional charges.

Key Points:

  • Lease customers can be charged hundreds or even thousands for excess wear and tear
  • Tires are especially prone to wear and may have to be replaced at the end of a lease
  • Excess mileage can also result in hefty fees. Most dealerships allow leased vehicles to accrue about 20,000-25,000 km per year
  • Other common problem areas include bumpers, windshields, interior damage (holes, tears or cuts), exterior dents and scratches or missing/malfunctioning electronic key fobs
  • Vehicles should also be up to date with mechanical repairs and scheduled maintenance
  • Try to be present for the inspection, get a copy of the report and find out about any excess charges
  • Some drivers may also choose to repair any damage on their own beforehand as it can be cheaper upon researching various options
  • Customers can also buy a protection plan from the dealer before the lease to cover excess wear and tear