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Model Y rear wheel arch scratch repair - what are your opinions on these vastly different quotes?

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Folks, the poster is LEASING this car!

That's a big difference. Leasing companies often allow vehicles with minor wear and tear to be turned in. I think that with a little cosmetic fixing, that this would probably pass inspection. So instead of paying $5,000, maybe all that's needed is a few hundred dollars or just touch up paint.
You have clearly never tried turning in a personal lease car in the UK.
 
And what happens? They look at it and say you need to fix it? Or charge for it? That's when you can decide to fix it or take the hit. But there's always a chance that if you make it not as noticeable it will pass inspection.
Honestly i totally agree with this.

If you want to repair it because it bothers you / you don't like the look of it, then go ahead and do whatever you can afford / you're willing to pay.

But if you're doing it because you're worried about charges at the end of the lease, then wait till much closer to it, get everything repaired at once (who knows if you'll damage the same spot again...) or just chance it and see what they ask you to pay. You could get away with it...
 
And what happens? They look at it and say you need to fix it? Or charge for it? That's when you can decide to fix it or take the hit. But there's always a chance that if you make it not as noticeable it will pass inspection.
I was not questioning whether you could get away with a cheap repair, that is possible. I was questioning that lease companies "allow vehicles with minor wear and tear to be turned in" In my experience some lease companies will nickel and dime you for everything then can.