Understanding yourlease-end options

Your vehicle lease is about to end, but your options andopportunities are just beginning.

cula.com

Before this lease ends, we at CULA and your credit union wantto say thank you for leasing with us. We hope you have enjoyedyour leased vehicle and that your leasing experience hasexceeded your expectations. If you are in the market foranother leased automobile, please consider CULA inpartnership with your credit union. This brochure has been designed to help you identify yourlease-end options and guide you through the decisions you willbe making and the action items that will result from thosechoices.

CULA thanks you

Your Lease-End OptionsAs your vehicle lease comes to a close, you will have to makesome decisions relating to what you want to do with your car.You have three options available to you. Option 1: Prior to your lease ending, you can trade your car inon a new one.Option 2: If you are happy with your car, you can buy it!Option 3: At lease-end, you can return the vehicle.

Option 1: Trade InA trade-in means the dealer is purchasing the vehicle from thecredit union. A dealer making your remaining payments is notpurchasing the vehicle, and therefore it is not considered atrade-in but is a turn-in, which means you remain responsiblefor the vehicle and all remaining lease obligations. You shouldreceive documentation from the dealer that the vehicle wastraded and that they will be paying off your lease balance withyour credit union.

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Option 2: PurchaseYour CULA Closed End Vehicle Lease Agreement containsprovisions for you to purchase the vehicle. Your credit unionwill be happy to review this option with you and provide youwith the full pay off balance. This could be a great choice inthose circumstances when the car is worth more than yourpay off balance.

Option 3: Turn In the VehicleTo ensure a smooth and efficient turn-in process, we stronglyrecommend that you work closely with your CULA CustomerService Representative (CSR). The CSR can guide you throughthe steps necessary to avoid many of the possible surprisesand costs associated with returning your vehicle. Your CULA Closed End Vehicle Lease Agreement provides forcharges that you may be responsible for when you return yourcar; for example, excess wear and use charges. The leaseagreement also provides for possible charges in the event ofexcess mileage and costs to restore the normal wholesalevalue of the vehicle in the event of damage and neglect. By identifying your turn-in costs early in the process, you allowyourself the opportunity to make decisions that could save youmoney. For these reasons you will be asked to have yourvehicle inspected 60 days prior to your termination date. YourCULA CSR is here to help!

It is important to note that should you choose this option, youare responsible for completing your lease pay off obligationat the credit union, even though the dealer will be doing thison your behalf, and to inform CULA that you have traded inyour vehicle.

Frequently asked questionsWhy am I being contactedby CULA?

My lease agreement shows adisposition fee. What is that feeand can it be waived?

I want to purchase my vehicle atlease end. What price will I payand what is the process?

What is excessive wear anduse (wear and tear)?

CULA is the lessor, or owner, of yourvehicle. The credit union is the lender, orthe lien holder, of your vehicle until suchtime as all your lease payments havebeen made. Since CULA is responsiblefor the vehicle at lease-end, our CSRswill be in touch with you to guide youthrough your options as your leaseapproaches its end. You may also contact us at 800-878-5400 or at turnin@cula.com.

In accordance with your leaseagreement, a disposition fee ischarged at the end of your lease ifyou do not purchase the vehicle. Thefee cannot be waived. (Paragraphs 15and 18 of the lease agreement.)

Your lease agreement specifies theterms under which you may purchaseyour vehicle. The purchase priceincludes a purchase option fee, theoutstanding principal balance, accruedinterest, any applicable late charges,and any fees or taxes imposed by thetransaction. (Paragraph 16 of the leaseagreement.) Contact your credit unionfor the pay-off amount.

When you signed your leaseagreement, you agreed to maintainyour vehicle in accordance with therequirements set by themanufacturer. CULA does not expectyour vehicle to be in the exactcondition it was in when you firstleased it. Reasonable wear and tear isexpected. Refer to page 9 (Mileage,Wear and Tear) for more informationon charges that might be imposed forexcessive wear and tear.

Can I pay for the excessmileage and wear and usecharges over time?Please contact your credit union todiscuss your options.

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Who do I talk to if I do not agreewith an item or the repair costson my final bill?

At what point can I drop thevehicle from my insurancepolicy?

If I have not driven my allottedmiles, can I get a refund?

When CULA has accepted delivery ofthe vehicle from you, you can dropyour insurance coverage on thevehicle. In order for CULA to acceptdelivery of your vehicle, the followingitems must be complete:

I am ready to return my vehicle,where do I return it and when?

CULA and your credit union want yourleasing experience to be a positiveone. Your CULA CSR will work withyou to ensure that you thoroughlyunderstand your bill and resolve yourquestions.

No. It is important to structure yourlease for the number of miles you willdrive throughout the lease term so youwill not owe money for excessivemileage or feel disappointed for notusing all of your miles.

After your vehicle has been inspectedand all payments made, you mayreturn your vehicle to the placespecified by your CULA CSR. Yourvehicle must be turned in by yourtermination date.

Why do I have to make theremaining payments if I turn myvehicle in early?When you signed your lease agreementyou agreed to pay your credit union aspecific number of monthly payments.Returning your vehicle early does notrelieve you of this obligation.

Our vehicle inspection must becomplete and results provided toyouAll monthly payments must beposted by your credit unionYou will have delivered the vehicleto the location specified by yourCULA CSRYou will have completed andreturned our vehicle turn-in receipt

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So that your end-of-lease costs can be properly determined,CULA and your credit union require you to submit your vehicleto an inspection process. CULA has contracted with anindependent vehicle inspection service to perform this serviceat no cost to you. The inspection service will call you to coordinate and scheduleyour inspection at a time and place convenient to you, but notlater than 30 days prior to the end of your lease. This allowsyou time to evaluate options available to you based upon theresults of the inspection. For example, you may want to havethe vehicle repaired prior to turning it in or you may decide thatyou would rather purchase the vehicle than pay for thenecessary repairs. All we ask is that you have your car washedso that the inspector can review clean surfaces on the car.

The inspection process

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We strongly encourage you to be present at the inspection. Bybeing present at the inspection you will receive a copy of thereport from the inspector. Please note that the inspector willdocument all discrepancies observed during the inspection. Itis likely that you will not be charged for all the items listed inthe report. After the inspection has been completed, your CULA CSR willreceive the inspection report and review it with you along withyour options. Your vehicle must be inspected prior to youturning in your vehicle.

Inoperative mechanicalparts including poweraccessoriesDents, scratches, chips, orrusted areas on the body(including truck beds)Mismatched paint or anymark left by specialidentificationCracks, scratches, pits orchips in the windshieldBroken windows orinoperative windowmechanismsBroken headlight lenses orsealed beamsBumper dents orscratches through thechrome, paint or plasticBroken grills or dents inthe grillsDents on other trim parts,including headlight andtaillight bezelsSeats, seat belts,headlining, door panels orcarpeting which are torn,damaged, stained orburned

Inspected items

Have youmaintained yourvehicle inaccordance with therequirements of themanufacturer?Has the vehicle beenin an accident?Has the vehicle beenrepainted?Is there anythingmechanically wrongwith the vehicle?Are there any brokenor non-operatingdevices on thevehicle?

Mismatched tires or tireswith less than 1/8 inch oftread—including spareCuts or damage of anykind to any of the tiresScratches, peeling, dents,gouges, corrosion or ruston rims/wheelsMissing parts,accessories andadornments, includingbumpers, ornaments,aerials, hubcaps, chromestripping, rear viewmirrors, radio and stereocomponents and sparetireVehicle Identificationnumber and odometerreading and operationFluid levelsStickersVehicle modificationssuch as lift kits, loweredvehicles, exhaustsystems

Your CULA CSRwill ask youthese questions:

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Mileage, wear and tear

The vehicle inspection template

CULA does not expect your vehicle to be in the exact condition it was in whenyou first leased it. Reasonable wear and tear is expected. The criteria forreasonable wear and tear depends on the length of your lease. Usually, theshorter the lease, the better condition your car is expected to be in. Mileage: Refer to your CULA Closed End Vehicle Lease Agreement for theamount of miles authorized and the charges for exceeding allowed mileage. Wear and tear: According to your lease agreement, you can be charged for anyitem that will detract from the vehicle’s wholesale value. The most commonitems of repair or replacement are listed for you in your lease agreement as wellas on page 7 (Inspected Items) of this pamphlet. To assist you in identifyingsome of these items, a Vehicle Inspection Template has been included and isdescribed below.

Use the template to identify areas where potential excessive wear and usemight exist on your vehicle.

Dents: Use the 1 inch diameter circleScratches: Use the ruler to identify scratches longer than 5 inchesWindshields: Use the dime size diameterTires: Use the Tire Depth Gauge

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What happens next

1. Please make sure that you keepthis brochure and the VehicleInspection Template in a safeand easily accessible place. Werecommend the glovecompartment of the leasedvehicle itself. Having these itemsavailable during the lease-endprocess will answer manyquestions you might have.

If you choose to return yourvehicle and not purchase it, aCULA CSR will assist you withthe inspection process, anyadditional charges related todisposition fees (whereapplicable), excess mileage,wear and tear and the turn-inprocess.

Contact us immediately to letus know if you will be returning,trading in or purchasing yourvehicle.

A CULA CSR will work with youto schedule a location and timefor you to return your vehicle.(See page 10 for a checklist forreturning your vehicle.)

Please do not return yourvehicle to a dealership withoutcontacting us first. This willsave you time and money.

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Go to www.cula.comClick on "Lessees" at the topof the screenUnder "Lease End" click on"Checklist Form"Fill in the form and submitit. We will call or email youafter receiving yourinformation to review yourlease-end options in detail.

Call us at 800-878-5400, ext. 0.Our hours are Monday-Friday,7 a.m. to 4 p.m. Pacific Time.

Online

By phone

After turn in, your vehicle will gothrough a final inspection. Thevehicle will be put up on a lift,checking for frame/unibodydamage, mechanical issues,etc. that cannot be found on apreliminary inspection. Shouldanything be found during thisinspection you will be notifiedimmediately.

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Checklist for returning a leased vehicle

800.878.54009665 Granite Ridge Drive,Suite 400

San Diego, CA 92123

Before turn-in At turn-inVehicle will be inspectedInspection results reviewedwith youYou will have made all leasepaymentsCheck with credit union onstatus of paymentsRemove personal belongingsfrom vehicle

Provide all keys and keyless entryremotesComplete Vehicle turn-in receipt andFederal Odometer Disclosure StatementBoth you and the dealer must sign thisreceiptFax receipt to CULA on day of turn inIf unable to fax on day of turn in pleasecall us withyour odometer reading and mail thereceipt to us.Your vehicle is not considered turned inuntil we have the receipt back.

For information about your lease, contact CULA:(800) 878-5400

turnin@cula.com

www.cula.com

Updated 06/26/2019