Back to Learn
Can I Return a Leased Car if it Has Problems?
Published 4/21/25
Estimated Read Time: 4 minutes
TL;DR: If your leased car starts having problems early, you may have options. Depending on your state’s lemon laws and the terms of your lease, you could either get the issue fixed or even return the car. But the clock is ticking—reporting issues early is crucial. If your car is past the lemon law period, you might be able to buy it out and avoid further hassle.
Let’s face it, returning a leased car at the end of the lease is already a hassle—why make it worse with car problems? But what if your leased car starts acting up way before you’re ready to hand it back? Can you return it, or are you stuck with the repair bills? Let’s dive into your options.
Know Your Lease Terms: Reading the Fine Print
Before we get into the legal stuff, let’s remember: Your lease agreement is essentially your contract with the dealer. Most leases require that you return the car in good condition—that includes fixing major mechanical or body issues. If your leased car has some serious problems, you could be on the hook for additional charges when it’s time to return it.
So, what should you do if things start going wrong early? The key is to act fast. The earlier you spot a problem, the easier it is to get it resolved without costly penalties.
Lemon Laws & Leasing
Fortunately, there’s a chance that your car’s problems are covered by federal or state-specific lemon laws. These laws protect consumers stuck with substantial defects or mechanical issues on a new vehicle, typically within the first 1-2 years of ownership.
Lemon Law for Leased Cars
Lemon laws are designed to protect consumers who have purchased defective vehicles. “Lemon” is a term used to describe a car with serious mechanical issues upon purchase.
Why a “lemon?” At least since 1909, this slang term referred to something that is substandard, even a “booby prize,” possibly because of the sour taste it leaves in your mouth, like the fruit.
Today, state lemon laws apply to defects impacting a car’s use, safety, and/or market value. When a new (leased) car is under warranty, these laws protect owners by requiring defects to be repaired by the car manufacturer. And if the manufacturer can't resolve the issue, they must replace the car or give you a refund.
Every state can have different specifications about what is protected for used cars. In some cases, state lemon laws may restrict which types of vehicles are covered, how old they can be, and the specific terms of a warranty.
Example: In Idaho, if your new and/or leased vehicle experiences issues in safety, ineffectiveness, or devaluation within 2 years or 24,000 miles, the dealer must repair the defect within “a reasonable number of attempts.” Otherwise, the driver is entitled to a replacement vehicle or a cash settlement. This covers cars, trucks, and vans.
The Magnuson-Moss Warranty Act
Also known as the "Mag-Moss" Act, this is a federal ruling.
Where state laws differ on the finer details of individual lemon laws, this act covers a wide variety of vehicles, including ATVs, motorhomes, and boats. Mag-Moss also covers used cars that came with a written warranty, whereas many state laws only apply to new car protections.
Watch Out for These Common Issues
No matter how prepared you are, a lemon can find its way into your life unexpectedly. However, there are certain things you can watch out for.
Let's say you lease a sedan for your daily commute, only to discover unsettling noises emanating from the engine. Despite getting your oil changed, the issue persists, disrupting your routine and leaving you questioning the reliability of your leased vehicle.
If your leased car has mechanical issues, such as engine or transmission problems, it's essential to address them as soon as possible. Most states’ lemon laws allow 24 months or less to report problems.
Sure, you can leave it be. But sooner or later you’ll need to get the issue repaired. Leaving these issues unresolved can result in you covering the charges at the end of your lease term instead of your manufacturer.
What to Do if You Get a Lemon
So, you’ve got a lemon on your hands. What now? Well, you’ve got two basic options:
- Contact the Dealer or Manufacturer: If your car’s showing issues, don’t wait around—contact them immediately. It’s best to have your warranty info on hand, and make sure you document every problem you’ve experienced since getting the car.
- Handle It Yourself (Cautiously): If you decide to take the repairs into your own hands, remember that you may get penalized when returning the car if the repairs aren’t up to par with the lease agreement’s standards.
Pro tip: If you’re feeling uncertain, it might be worth getting a consumer protection agency or legal expert involved. It’s better to be safe than sorry!
In short, returning a leased car with problems is possible. But addressing any issues as soon as you notice them is essential.
What If My Car is Past the Lemon Law Term?
If you waited too long and are worried you might be stuck returning a lemon (and possibly even held responsible for the issue), you may be able to avoid penalties and keep your car with a lease buyout. Lease End’s expert advisors specialize in lease buyouts and can help you navigate the transaction, even if your leased car has problems.
Plus, you’ll avoid the hassle of dealing with the leasing company and the inconvenience of shopping for a new car—especially if you love the one you’ve got.
If you're ready to chat through your options with a dedicated financial advisor, give us a call at 888-307-5197 to get in touch with one of our lease-end experts.
Or, enter your license plate number or VIN in the form below to start the process online.
About the author
Rebecca Graham
With over a decade of professional writing experience, Rebecca transforms complex concepts and data into clear, engaging content. When she's not honing Lease End's organic growth strategy, she's fanning the flames of her Wicked obsession, crafting custom candles, or walking Utah’s mountain trails. Connect with Rebecca on LinkedIn.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
©2025 Lease End
©2025 Lease End
Give Us a Call:
(844) 902-2842