Getting out of a car lease isn't as impossible as you think. Car owners will want to end leases for various reasons ranging from unexpected lifestyle changes or simply wanting a new car. When signing the original car lease, buyers agree to make payments for a scheduled term until the contract is complete and the car is paid off.
If you want to terminate your car lease early, you can be released from the contract, but you may also need to pay the balance due and any costs, penalties, or fees associated with the early termination agreement listed in the vehicle's contract. But don't worry, we're here to walk you through the steps required to terminate your car lease early.
5 Ways to Terminate Your Car Lease Early
1. Return the car to the dealership you purchased from.
You can always return the vehicle purchased to the place you bought it, but this option will cost depending on the early lease termination agreement stated within your contract. Automotive dealerships are trying to run a business just like everyone else – but good ones, like Bob Penkhus, will work with you to find you the right car before driving off the lot, to ensure you don't have to pay excessive penalties if you want to return it before the lease agreement is up.
2. Sub-lease your vehicle to someone else.
If you can find a family member, coworker, or friend who wants to take over your car payments through the end of your lease term, you may be able to get out of your monthly payment. Many leasing companies will offer a sub-lease option for customers looking to sell their leases, though you will need to research the requirements, transfer fees, and restrictions involved. Though you are no longer responsible for monthly payments, you may be liable if the loan goes into default – so exercise caution if choosing this approach.
3. Purchase your car from the leasing company.
If you want to purchase your car from the company you are leasing from, you may be able to end your contract early. Your lease will have a buyout or payoff amount due to the leasing company, and depending on the current resale value of the vehicle, you may need to pay more for the car than it is actually worth to end the agreement.
4. Trade in your car.
If you bring your car back to the dealership you originally purchased from, you may be able to trade in your car for another model. The penalties or fees associated with the original lease would simply be transferred over to the new car contract, and will also make your monthly payments higher.
5. Sell your car.
You also have the option to sell your vehicle privately. If you've taken good care of your car and it is in good condition, you may be able to sell it and cover your costs without having to pay too much out of pocket. This is also a great option if you want to avoid any penalties associated with exceeding lease mileage or wear and tear fees.
The details of early termination fees and penalties will be listed in your vehicle contract, and if you need help understanding what those are – we're here to help. At Bob Penkhus we want you to love the car you drive. Let us help you terminate your car lease and find you the car you've been looking for! Give us a call or contact us online.
- Your friends at Bob Penkhus