Trying to figure out how to get out of a car lease early? Even though it can be a costly and prolonged process, you may have multiple options to choose from. We understand there are times when a car lease might no longer work for you because of personal reasons or maybe because the car just doesn’t fit your needs anymore. So if you’re considering terminating your car lease early, also keep in mind that it can come at a high price.
Luckily, early termination isn’t your last option. Take the extra time and investigate other less-costly alternatives which could help you be in a better financial position. We’ve explained in detail some options for getting out of a car lease earlier than you’re supposed to.
Get Out Of Car Lease Early: Top 3 Ways To End Car Lease Early
A great option is transferring your lease to a new lessee. As long as it is legal in your state, permitted under your lease and the party you’re transferring the lease to meets your lender’s credit requirements, this is your safest and cheapest option.
While a lease transfer may still require you to pay a lease transfer fee and other costs, you must still do your research and check if it’s cheaper than early termination. If you’re having trouble finding someone to transfer your lease to, consider using a service that connects you with those looking to take over a lease like leasetrader.com or swapalease.com. You can even head on over to the Car Factory, in our Miami or Florida outlets and discuss your lease transfer options. Our experts will guide you to the best possible deals, with minimal effort from our end. You can book an appointment for a consultation on our website Car Factory or by calling (786) 406-6234.
Whatever you do, make sure you transfer the lease to someone you know and trust, because you can still be on the hook for the lease.
Early lease termination
Ending your car lease early, means that you’re free from making any remaining payments on your current leased vehicle. But only the leasing company can offer you this option, so check with them first, before you plan on ending the lease. This also means that you have to turn in the car and pay the due balance, including any costs, fee and penalties, associated with early termination. The federal Consumer Leasing Act requires that details for terminating your lease early be disclosed in your lease.
What happens when you end your car lease early, as the first step, the lease company may charge an early termination fee, which is usually the difference between the remaining balance owed on the lease and the credit you receive for the current value of the car, based on the calculations mentioned in your lease. You may also have to pay fees like vehicle disposal fee, transfer fee and other taxes.
In short, the earlier you terminate the lease, the higher the cost usually will be.
At times, buying out your lease early and purchasing the vehicle outright is easily your best option. There are still fees involved, but you should run the numbers to see if paying the early buyout amount, along with any associated fee, and then selling the car yourself would put you in a better financial position than an early termination or lease transfer. Keep in mind though, if you don’t have the funds available to pay the early buyout fees, you’ll have to factor in buyout financing into your decision.
In the end, you need to decide whether getting out of your lease early at all is worth the costs and hassle. Sometimes, it’s smarter to stick it out and finish the lease.
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