How Can I Terminate My Car Lease Early?
Leasing a car is a nice option if you need a car for a specific period. Many times, changes in location, financial conditions or the needs of the family require you to terminate the car lease early. Although getting a car lease might seem easy, terminating the car is not without difficulties. Before we discuss the options, you should know the different charges and penalties for terminating the car lease early:
Now that you know the penalties and charges, you can go ahead and choose the best option to terminate your car lease early.
Transferring the lease seems to be the best option to exit the car lease early. In this arrangement, you find a person who is looking for a car lease for a shorter period and is willing to take on the car lease from you and continue further. When you transfer the car lease, the person who takes over the lease makes future payments to the lessor (the company that leases the car). However, not every lessor allows lease transfers. The car lease agreement document mentions the terms and conditions of the lease and whether transfer of a car lease is permitted. If the lease agreement allows lease transfers, you can start searching for a person who can take over the car lease.
If you are unable to find the person by yourself, you can always contact a lease transfer company who can find a lessee for you. The lease transfer company not only finds you the person who is ready to take over the lease but also helps with paperwork to complete the lease transfer process. You don’t have to pay any lease termination fees but only a small lease transfer fee. The lease transfer company works with the lessor while transferring the car lease and it does not affect your credit score. Some car dealership may put a condition to keep your name on the car lease making you liable if the new lessee defaults on payments.
Swap Your Vehicle
If the reason to terminate the car lease early is that your family needs have changed, you can trade it in for another car. Many car dealerships offer attractive deals for people who want to terminate the lease and sign another lease. The car dealership might also wave early termination fees. You need to discuss your options in such situations and search for the best offer.
Return the Car
If the car lease agreement does not allow lease transfers and you don’t want another car, the only option you have is to return the car to the dealer. If you return the car to the dealership before the lease ends, you need to make the remaining payments while returning the car. Some dealerships may also require you to pay some penalties or additional fees for terminating the car lease early.
No matter what option you select, make sure it does not affect your credit score in any way. If you ignore this factor, it will be difficult for you to lease or buy a car in the near future.