You went into leasing a car with the best intentions but now need to get out of it. It happens, everyone knows this. But there could be some issues with terminating the lease early though which include making the payments as promised. No one wants to be stuck.
However, there are ways to terminate your lease. Here are a couple of tips for terminating your lease early. Don’t resort to defaulting on the payment if you can. That should be the last option as it can destroy your credit and possibly get you sued.
Transfer your lease
Most leasing companies will allow you to transfer the lease to another person. However, be aware that in most cases, you will still technically be on the contract and liable if that other person stops making payments. You may also have to pay a transfer fee which can range between $50 and $500.
Sell or Trade the vehicle
Purchasing the car before the lease is up can give you the option to sell or trade it in for something else. This is called an early buyout and can be a great way to get out of your lease if you can find a buyer for the car. The payoff amount will include an early termination fee of around $200 to $500 plus any remaining depreciation cost. Then, you’ll be ready to sell yourself or trade it in for another car.
Return the vehicle and pay the penalties
This is probably the worst option to get out of your lease early. You will end up paying a large termination fee and the remaining depreciation of the vehicle. If you are trying to save money, the best option is to buy the car and sell it yourself.
Asking the leasing company for help
If your problem is financial trouble, contact the leasing company. They have options to help. Those options include lowering or possibly stopping payments on the car to help you get back on your feet. Calling them and getting ahead of the issues can help you from getting extra fees in the process.
Don’t let the fear of being stuck in a lease scare you into having to buy a car. Know your options and make an informed decision. Then head to the dealership to pick out the car you love.