Excess mileage charges apply when the miles you�ve put on the vehicle exceed over and above the predetermined contractual limit. Typically the contractual limit is between 10,000 and 15,000 miles per year.

The best way to avoid having to pay for excess mileage is to estimate how much you will drive the car before you sign the lease. Include any weekend and holiday use in the estimation. Most leases allow you to purchase extra miles up front, and it is usually less expensive to do this in the beginning, than to pay extra mileage at the end of a leasing term.

When the wear and tear to a vehicle is in excess of what the wear should be during normal everyday use, then the vehicle is said to have �excessive wear and tear�, whereas the definition of �normal wear and tear� should be clearly defined in the terms of the lease agreement. If you have caused excess wear and tear, you are responsible for compensating the leasing company for the resulting loss in the car�s residual value.

Typically, excess wear and tear charges are limited to the sum of three months� worth of monthly installments on the lease. If, however, you have an open-ended lease, you may be required to pay more � so make sure you get a closed lease. Do your research before you sign, to be sure that the definition is reasonable compared to other leases. If the definition is vague or overly strict, find another leasing company.

The best way to avoid excess wear and tear charges is to make sure that you follow the manufacturer�s maintenance schedule for your car and have any problems fixed right away. You should also wash a leased vehicle regularly and keep the interior clean, since the car�s appearance, as well as its state of repair, will be assessed when you turn it in.

A disposition fee is a fee that is sometimes charged if you do not buy the car at the end of your lease. Before you sign, check to see that the lease contract does not impose a disposition fee.