How Can I Terminate My Car Lease Early?

How Can I Terminate My Car Lease Early?

You were excited when you got a new car lease for two years. But life changes and sometimes you feel that this leased car is a financial burden and you want to terminate the lease early. Here are some ways to exit the car lease early.

Find a Person to Take Over Your Car Lease

Transferring the car lease is the easiest and least expensive option to exit the lease early. In this arrangement, another person who is looking for a car lease for a shorter period takes over your lease. However, before you exercise this option, you need to be certain that your lease agreement allows lease transfer. Many car dealerships allow this transfer provided the type of lease contract does not change. For example, if the car lease contract is of the personal contract type, you can transfer the car lease to another individual. However, you need to inform the car dealership about transferring the car lease.

If you find the whole process of car lease transfer difficult, you can visit a lease swapping website and register your request. While registering on the lease swapping website, you need to mention details of the car (make, model and year), details of the lease and other relevant information. People who find the lease swapping offer useful, will contact you. The lease transfer company can help both parties reach an agreement over the transfer of the lease.

When both parties agree to a lease transfer, the lease transfer company works with the car dealership to prepare the papers. After these documents are signed, you hand over the car to the new lessee. After the lease transfer, the new lessee is responsible to make all payments toward the car lease. Thus, with lease transfer, you can terminate the car lease early. The good thing about lease transfer is you don’t have to pay any early lease termination fee nor any penalties for ending it early. You only have to pay the lease transfer fee that may be a few hundred dollars.

Trade Another Leased Car

If the reason for terminating a car lease early is that you don’t like what you drive, you can always request the dealer to roll your current lease into another one. This way you can terminate the car lease early. You will still be required to pay exit fees but they would be included in your new lease installments.

Buy the Car and Sell It

Many car lease agreements have an option to purchase the car during the lease period. To purchase the car, you need to contact the dealership and find out the buyout price. The buyout price is less than the price of a new vehicle as the value of a car diminishes with time. After you have found the buyout price, you need to approach a car valuation company or use an online car evaluation tool to know the right market price.

If the current market value of your leased car is higher than the buyout price, you can buy the car and then sell it to a private party.