TAMPA, Fla. — Car leases have grown in recent years as the price of cars continued to skyrocket. But, the ABC Action News I-Team found some dealers are charging illegal fees to consumers who try to buy out their leases. Some are even billed for items not in the original agreement.
I-Team investigator Jackie Callaway found dozens of consumers have complained to the Attorney General regarding auto dealers adding inspection and other fees to the price of a lease buyout. The problem is the fees are not listed in the original contract.
Venice resident Brett Spengler said it happened to him when he attempted to exercise the purchase option on his 2020 BMW X3.
Brett's lease agreement states his buyout price, also known as the residual value. ABC Action News found the lease contract doesn't list any fees related to a buyout. He said BMW told him he would need to use a local dealer to process the buyout.
That’s when the deal went south.
The dealer's buyout proposal included multiple fees that were not in Brett’s lease contract. Brett told ABC Action News the dealer fees added $1,200 more to the buyout price listed in the leasing contract.
“They are adding inspection fees, taxable fees, PTA fees which they couldn't really explain,” he said.
Attorney Joshua Feygin said these fees violate the federal Consumer Leasing Act. “If it's not in the lease, they can't charge it.”
According to federal law, "A dated disclosure must be given to the consumer before signing the lease and must contain all of the information..." Additionally, “Lessors are required by federal law to provide the consumer with leasing cost information and other disclosures..." including any sort of buyout provision at the end of the term.
So, Brett fought back.
“We told them that hey, you know, we're going to report you because they're, they're breaking federal law,” he said.
Feygin said went back and forth with the dealer for four days.
“They called and said, 'We're going to drop all the fees,'” he said.
If you’re going to lease a car, always check the fine print before signing. In the event fees are added on to the buyout after the fact, try negotiating with the dealer.
If that doesn’t work, you can file a complaint with the Consumer Financial Protection Bureau and the Florida Office of Financial Regulation.
