Merchants are entitled to charge fees if the vehicle shows abnormal wear when it is returned at the end of the leasing contract. Such wear is different from the wear that results from normal use of the vehicle.

To avoid unpleasant surprises, it is recommended that you have the vehicle’s condition evaluated before the end of your lease. You will then have an opportunity to have any necessary repairs made.

Contracts entered into before April 5, 2024

You can have the vehicle’s condition evaluated by the mechanic of your choice. If there is a problem with the merchant, you will then have a written evaluation of the vehicle’s condition prepared by an independent third party.

Contracts entered into on or after April 5, 2024

At least 90 days before the end of your long-term leasing contract, the merchant is required to offer to inspect the vehicle free of charge. You are free to accept or refuse this offer.

If you accept the offer, the inspection must be carried out at least 30 days, but no more than 60 days, before the end of the leasing contract. The merchant may choose whether the inspection is to be carried out at its place of business or at your home.

Written inspection report

The merchant must give you a written report immediately after this inspection. If applicable, the report must include the following information:

• the vehicle’s parts or components that show abnormal wear, in the merchant’s opinion;
• the possibility for you to repair these parts or components or have them repaired by the person of your choice.

After the vehicle has been returned

Once the vehicle has been returned, the merchant must give you a written notice if the wear is considered to be abnormal. The notice must include the following information:

• the parts or components that show abnormal wear;
• the possibility for you to repair these parts or components or have them repaired by the person of your choice within 10 days after receiving the notice.

The merchant cannot charge fees for abnormal wear in the following situations:

• The merchant did not offer to inspect the vehicle free of charge at least 90 days before the end of the lease.
• The merchant did not give you the required inspection report.
• The merchant did not give you the required written notice.
• The merchant sells or leases the vehicle again before the end of the 10-day deadline indicated in the written notice.

Fees that cannot be charged

Merchants are not allowed to charge fees for:

• wear that is not excessive;
• bringing the vehicle back to a better condition than what is considered normal wear.

The merchant cannot charge you the cost of replacing the vehicle’s hood because of slight scratches or bumps caused by stones during normal use of the vehicle.

Moreover, a tear in the fabric of a seat that is not due to normal wear cannot lead to exorbitant costs. The merchant must charge you a reasonable amount (e.g., the cost of a used seat).

In the event of conflict

If you and the merchant cannot come to an agreement concerning the vehicle’s wear, you may dispute the fees charged by the merchant.

Merchants should not charge you to replace a part or component if it can reasonably be repaired at a lower cost.

Moreover, the merchant cannot claim the full repair cost, but rather the resulting loss in value, if this loss is lower than the cost of the repair.

Origin, nature and quality of a part or component

Have you had maintenance or repair work done on the vehicle during your lease?

The merchant cannot charge fees because the nature or quality of a part or component installed as part of regular maintenance is deemed unsatisfactory. The merchant may only do so under one condition: when the leasing contract clearly specifies that the item can only be returned with a part or component of a determined nature or quality.

In addition, the merchant cannot charge fees because the part or component is not an OEM part or component or that the maintenance work was done by someone other than the manufacturer or a business approved by the merchant.

In the event of conflict

If you and the merchant cannot come to an agreement concerning the repair or replacement of a part or component, you may dispute the fees charged by the merchant.

Some merchants will ask you to pay the cost to replace the tires. Sometimes, this is not justified.

Tires considered excessively worn

The merchant cannot charge you for a new set of tires to replace tires that are considered excessively worn. Charging for the installation of a set of used tires is more appropriate, provided these tires are considered to show normal wear.

Refer to the page on vehicle wear to find out more.

Winter tires

Are you returning the vehicle while it is fitted with winter tires? Some merchants may charge fees to replace the winter tires with the same type of tires that were originally installed: all-season tires or summer tires.

The merchant can only charge such fees if they are provided for in the leasing contract. This requirement is more acceptable if, for example, the merchant asks for the winter tires to be replaced if the vehicle is not returned in winter.

Refer to the page on repair or replacement of a part or component to find out more.

Leasing contracts usually include a clause that provides for the kilometre allowance for the duration of the contract. For example, a 48-month contract can provide for an 80,000-kilometre allowance.

Specified kilometre allowance

When the contract specifically mentions applicable fees, the merchant can charge additional fees if you go over the kilometre allowance.

No kilometre allowance

If your contract does not include a kilometre allowance or does not mention fees for additional kilometrage, the merchant cannot charge any additional fees in this regard.

In the event of conflict

If the merchant fails to abide by the terms of the leasing contract, contact us to file a complaint.

Are you disputing the fees charged by the merchant at the end of the lease?

First, try to come to an agreement with the merchant. If the negotiation fails and you maintain that you are not required to pay those fees, you can simply refuse to pay the bill. If the merchant intends to pursue the issue, the merchant will have to undertake legal proceedings and prove any damages in court. 

To do so, notify the merchant in writing by indicating:

• that you believe you do not owe the merchant the amount being charged;
• that the merchant will have to prove the claim in court;
• that no unfavourable note can be entered in your credit file as long as the merchant has not proven the damages in court.

Another option

You can also decide to pay the fees under protest by writing the words “Under Protest” on the invoice or cheque you will give the merchant. This means that you will dispute the amount you paid.

In this case, you will be responsible for undertaking legal proceedings to recover your money. The page titled Filing a Complaint With the Small Claims Court explains the procedure to follow.