If you want to enjoy the benefits of driving a nice car but don't want to deal with the hassle of long-term maintenance or finding a buyer when you're done with it, leasing a vehicle is a great option for you. It is also convenient because you are aware of the precise amount of time that you will be confined to the vehicle that you are currently operating. What should you do, however, if you can't wait until the end of the lease to ditch the car you've been leasing? Or are you relocating to the other side of the world and unable to bring your car with you? But you shouldn't go back to the parking lot with it just yet. If you return the vehicle before the end of the lease, you may be subject to hefty penalties that can reach as high as the total amount still owed on the lease. But don't give up hope just yet; there are ways out of your lease without having to pay an arm and a leg to get out of it.
Please Review Your Agreement Carefully
Even though you hopefully already did this when you were signing the lease for the first time, it is a good idea to reread it keeping this in mind as you go through it again. Is there anything in this that would charge you a fee for terminating the contract before it was due? There is likely to be in the overwhelming majority of instances. But in addition to that, you should look for any exceptions or circumstances that might allow you to get around these penalties.Make an Effort to Discover Someone Who Can Replace You on Your Lease
It is not a foolproof method, and you cannot just choose anyone off the street as a candidate. There are some dealers that will not allow you to switch leases at any time. Many impose a number of constraints on both the kind of person who can take over your lease and the window of time during which they can do so. However, many businesses do indeed permit the transfer of a lease for a fee that is significantly lower than the typical price of continuing the lease. People who have leases that they want to unload post their offers on various websites, and people who are looking to take over a lease respond to the ones that pique their interest. These websites essentially function as online dating platforms for automobiles. It's also a good idea to ask your family members and friends if they or anyone they know would be interested in the opportunity. If you want to find someone to take over your lease, be aware that they will still need to have good credit and be approved by the company. If you want to find someone to do this for you, see the previous sentence. Unfortunately, some dealers will still hold you responsible if there is any damage to the vehicle, even if you take out additional insurance.Swap It Out for a Different Automobile
If you need to get out of your lease because you are moving out of the country or you are having financial difficulties, this is not a good idea to pursue. However, if you just want to try driving a different kind of vehicle for whatever reason, you are free to switch to a different one at any time. You will be responsible for paying early exit fees; however, in most cases, you will not be responsible for the remaining payments on your current lease if you break your lease early. Additionally, switching to a less expensive model could save you money on your monthly payments; at the very least, it wouldn't hurt to ask about this possibility.Take advantage of the Option to Buy Out Early
If you decide at any time that you want to purchase the vehicle you're driving instead of just making monthly payments on it, you have the option to do so through the early buyout mechanism, by which the company will calculate the approximate value of the vehicle you're driving as well as how much you've already paid into the lease. This is one of the reasons why leasing can be appealing. If you decide at any time that you want to purchase the vehicle you're driving instead of just making monthly payments on it, you have the option to If you are feeling ambitious and you have the cash on hand, it might be worth your time to buy the car from the lessor and then attempt to sell it. After you have purchased the vehicle, you have the option of selling it to a dealership (although doing so is only worthwhile if you paid less than the price listed in the Kelley Bluebook for it), to a member of your immediate or extended family, or to a stranger you have met through Craigslist. Even if you incur a loss, the amount may be less than what you would have suffered if you had fulfilled the remaining obligations of the lease and paid any penalties.Or... You Could Always Wait It Out
When you take a vehicle out on a lease, it is not required that you use the vehicle each and every day that you have it in your possession. If you are moving to a different state and simply want to get out of your lease a few months early, you could try leaving the vehicle with a friend (they obviously can't drive it!) and then just returning it when the lease is up. It's possible that this will be the least expensive choice, particularly if you still have a few months left on your lease. If you wish to terminate your lease, you should almost always ensure that you are doing so for compelling and unavoidable reasons, as this is the only circumstance in which it will be financially beneficial to do so. However, if that is not the case, then it is most likely going to be to your advantage to continue driving the vehicle for which you signed up until the end of the contract. It is possible that it is not the custom hot rod of your dreams or the very best vehicle for your circumstances, but the expense or the hassle of attempting to get out of the deal early might not be worth it.Questions That Are Typically Asked (FAQs)
What is the fee for returning a leased car before the end of the contract?
If you break the terms of your lease early, you will be responsible for paying any fees associated with the early termination. These fees represent the shortfall that exists between the amount of time remaining on the lease and the market value of the leased vehicle. For instance, if you still owe $18,000 but the car's realised value is only $15,000, you will be responsible for paying $3,000 in additional debt.What happens to your credit score if you return the leased car early?
Both yes and no will hurt your credit score if you are unable to make the payments on your car lease or if you stop making them altogether. If you can hand off the lease to another person, then terminating the auto lease early will not have any effect whatsoever on your credit score.