Ending Your Lease Early

What You Should Know

 

You were excited about your new car. It was exactly what you wanted at the time you drove it off the lot. But life changes. What happens if you lose your job and can’t afford the payments? If you got a promotion and can afford a nicer, better car, why keep the small compact? What if your two-door dream car won’t be what your family needs when the new baby comes? If you financed the vehicle you can sell it or trade it in fairly easy. If you decided leasing was a better option, you are asking: Can I terminate my lease early?

In short answer, yes. Just make sure you do your research first and be careful. Car companies know that life happens. You are not the first person to ask this question. Therefore, check your leasing contract for the specifics for terminating your lease early. Not all contracts are the same, so don’t assume the fine print. It is rare that you will be able to end the lease early without paying for it, but it is not impossible.

Available Options to Consider:

1. Return the car and pay the fees. Make sure you are aware of the exact amount you will be responsible for before making this decision. If you are near the end of your contract, it may be more save you money to finish the payments.
2. Transfer your lease. This is a viable option with most contracts. There are trusted online companies that offer this service. It allows you to advertise that you are wanting to sell your lease to those that are interested in taking it over. Just be aware that you may still be liable if something goes wrong, i.e. payments stop being made, because your name will still be on the original lease contract. It’s a good way to get out of your lease if everything goes smoothly.
3. Trade in for another vehicle. You can roll the fees over into a new lease agreement. This will make your new monthly payment higher, but allow you to pay the fees from the old lease over time and not all at once.
4. Purchase the vehicle. You are able to purchase or buy out the leased vehicle at anytime during the lease period. Just do the math and make sure it is worth the extra money.

Conclusion

It is very possible to end a lease agreement early. Read the fine print on your contract and crunch the numbers before jumping out. Depending on your contract, the market, and your specific circumstances it may cost you less and give you more peace of mind to finish out the contract.

 

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