How Can I Terminate My Car Lease Early?
Terminating your car lease early means you don’t want to keep the vehicle for the agreed period. There are many people who lease a new car from car dealerships for 18 to 24 months but may want to end the car lease early due to many reasons. Here are some good ways to terminate your car lease early.
Find Someone to Take Over the Lease
Transferring a car lease is the best option for people who want to exit it early. Unlike other methods, there are neither termination fees nor any penalties to pay. The lessee only has to pay a small transfer fee to the company which plans and executes the lease transfer.
The car lease period ranges from 18 months to 24 months. It is one of the conditions that prevent people from approaching car dealerships for a car lease. There are many people who are ready to take over the car lease for shorter periods.
You can approach car lease transfer companies and give details about your car lease. These companies might know people who are ready to take over the car lease. You should always check the car lease agreement and ensure it allows car lease transfer. Many car dealerships allow car lease transfer provided the contract remains the same. For example, if the car lease agreement falls under personal contract, you can transfer the car lease to an individual. You should never consider the car lease transfer option without informing the car dealership.
How Does the Car Lease Transfer Work?
There are several car lease transfer companies who are specialists in this type of work. They act as a facilitator between the old lessee, the car dealership and the new lessee. They work with the leasing company to prepare a new lease contract and get the deal signed. This way, you exit the car lease early without paying any penalties and also keep your credit score in good standing.
What Are Other Options to Terminate a Car Lease Early?
Buy the Car and Then Sell It
Car dealerships are known to offer the lessee an option to purchase the car during the lease period. In this arrangement, the car dealership will mention a payoff amount that you need to pay to end the lease and own the car. If the payoff amount is less than the current value of the car, you can get a good profit by selling a leased car. However, you need to approach a good car valuation company that can tell you the right market value of a the car.
Return the Car to the Dealership
The car dealership can terminate the car lease early provided you make the remaining payments for the lease period along with early termination fees. It is difficult to determine if it is a good option as you may end up paying more than you would have throughout the lease.
Consider this option only if you don’t like what you drive and want to take out a new car lease. Many car dealerships might reduce the penalties if you enter a new lease contract with them.