When you lease a car, you enter into a contract—the same way you do when you rent a home. Ending that lease early will usually result in serious consequences: your credit could suffer, you may need to pay early termination fees, etc. However, there may be some workarounds that can allow you to end your car lease before the term is up, and without penalties. Some of the following are ways you can end your car lease early:
Transfer your lease to someone else
Finding someone to take over your lease payments can be one way to get out of the commitment of making monthly lease payments, but without breaking the agreement. If you don’t know anybody personally who wants to lease your car, try different lease-transferring websites, like LeaseTrader.com and SwapALease.com. These types of websites can help match you up with someone else who may be interested in taking over your car and lease payments. However, before transferring your lease, be sure to check the terms and conditions of your lease. You’ll want to make sure that transfers are allowed and that you won’t be liable if the individual fails to make timely monthly payments.
Buy or sell the car
If you like your car, but you just don’t want to lease it anymore, you may have the option to end your lease by purchasing the car. For example, you may be facing penalty fees because you surpassed the mileage limit that was set in place by your lease. If you’ve already thought about purchasing a car, rather than leasing, purchasing your current car might be the most sensible decision. Most leasing companies will give their customers the option to buy the car before their lease term is up, so if this is something that potentially interests you, ask your leasing company for details. Alternatively, selling the car may be your best bet if you want to end your lease early and you want a different car. Ask your leasing company for details, and be sure to do the math—you may take a loss from the transaction, but it could be less than what you’d otherwise pay by terminating your lease early.
Trade it in
If you prefer to continue leasing a vehicle, but it’s just your current car you’re unhappy with for whatever reason, ask about trading it in. You may have the option to swap out your current car for something else, but depending on the terms and conditions of your lease, you may still need to pay an early termination fee.
Don’t stop making payments
As a way to get out of their car leases early, but while avoiding early termination fees, some people will simply stop making the monthly car payments and will allow the vehicle to be repossessed. However, voluntarily car repossession still has its consequences. Not only are you breaking the terms of your contract, which can have its own penalties, but your credit will be affected. If you feel you’re out of options and you need to get out of your lease, talk to your leasing company and explain your situation. For example, if you lost your job and can no longer afford the payments, tell them that. They may be willing to work with you, and work out a more affordable payment plan for a limited time.
Do you need some extra cash to catch up on monthly bills or expenses? If you’re receiving long-term payments from a structured settlement or annuity, Peachtree Financial Solutions may be able to help. At Peachtree, we can purchase some or all of your future payments and offer you that money sooner, in the form of a lump sum. Contact Peachtree Financial Solutions today for more information and for your free quote.
Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.