Life is unpredictable and you will never know what surprises it can bring. One day, for example, you may be pressured to think of getting out of a car lease because of a change in life. Getting out of a car lease may be rather painful for your pocket as early lease quitting involves paying high penalties. However, if you decided to terminate your lease early, you had better consider all the options available.
One of the benefits of leasing a vehicle is that you pay very low monthly payments. The bad news is that it is not in the leasing company’s best interest that you return your car early. So, do not expect to go to the leasing company and be free of extra fees and penalties.
The only thing we do not recommend is getting out of a car lease without paying the extra fees. If you do this, it will surely have a negative effect on your credit score report. Do not panic, there are more reliable options than returning the car and paying all of those extra fees, or taking a hit on your credit.
The first option for getting out of a car lease is looking at leasing contracts, particularly the lines about early lease termination. Sometimes the early lease termination fees are so high you start hesitating whether to get out of the lease or not. After looking at the documents and deciding that the best option for you is getting out of a car lease consider all the choices you have.
- You can sell the vehicle and use the money for the buy-off amount of the lease. In this case you need to do some research to find out whether the car’s amount is the same as the buy-off amount. If it is, then you can sell the car. In some instances you may have to ass a few thousand dollars to the car amount to pay for the leased car. It is ok as long as early lease termination fees cost higher.
- You can also transfer your lease to a third party. This is called a lease assumption, when another person takes over your lease; they pay the remaining payments, and return the vehicle at the end of the lease. This is a great option because you won’t have any penalties. Also, after the lease is transferred, you will have no responsibility toward the leasing company as well.
The best way to find a third party is to use one of the specialized companies that help lease buyers find lease sellers. You can advertise your vehicle and lease terms in the websites of these companies, and they will process the paperwork and help you during the transfer process. Of course, you will have to pay some fee for this service, but it will surely be less than what you would pay during lease termination penalties.
Good luck in getting out of a car lease!