If you are currently locked into a monthly lease payment for a car, and you’re either struggling to keep up with the payments or you’ve simply decided that you don’t need the vehicle anymore, you may be wondering how to get out of the lease without incurring any early termination fees.
Common Reasons for Early Lease Termination
Many people find themselves in the same situation as you. For example, you may have lost your job or had a decrease in income that makes it hard to keep up with your auto financing. Or maybe you have a growing family and need a bigger car. Whatever the reason, it’s important to understand that there are ways to end your lease early without paying a stiff penalty.
Understanding Your Lease Agreement
Before you can successfully navigate the process of ending your car lease early, you need to become very familiar with your lease agreement. Review the agreement thoroughly and flag any sections that pertain to early termination.
One important detail to check is the buyout amount, which is the amount you’d have to pay if you were to buy the car in full. This amount might change depending on when you choose to end your lease.
When you’re done reviewing your lease agreement, you will have a clearer understanding of your obligations, rights, and options in regards to ending your lease early.
Options for Avoiding Early Termination Fees
Selling Your Car to a Third Party
If you’re attempting to avoid early termination fees, one option is to find a third party buyer that is willing to purchase the car from you. In most cases, a third party buyer will take over your lease payments and you will avoid having to pay any termination fees.
However, it’s important to keep in mind that not all leasing companies will allow a third party to take over your lease. It’s best to review your lease agreement and consult with your leasing company to ensure that this option is available to you.
Transferring Your Lease to Someone Else
An alternative option to selling your car would be to transfer your lease to another person. This process can often be completed through a lease trading company. Essentially, the person taking over your lease would assume the payments for the remainder of the term, and you would be released from the contract without incurring any early termination fees.
Buying Out Your Lease
If you’re considering ending your lease early, you could also opt to buy out the lease yourself. While this may seem expensive, it can be less costly than the fees associated with early termination. Plus, if you plan on keeping the car, it will be less hassle than starting a new lease or taking out a new auto loan.
Selling or Trading in Your Leased Car
If you’ve decided to end your lease early and none of the aforementioned options are viable for you, you can try selling or trading in your car to a dealership. This process can be tricky as the value of the car may not be worth as much as you still owe on it. However, it’s worth exploring to see if it’s a viable option for you.
Negotiating with Your Leasing Company
Gathering Information About Your Options
If you’re still unsure of what to do, it’s best to gather as much information as possible to help you make an informed decision. This includes researching your lease terms, your leasing company’s policies, and any laws in your state that may protect you.
Contacting Your Leasing Company
Once you have gathered all the necessary information, it’s time to contact your leasing company to discuss your options. Be honest about your situation and explain why you need to end your lease early. They may be able to offer you a reduced fee or a payment plan to help you pay off the lease.
Presenting Your Case and Negotiating a Deal
If all else fails, you can try negotiating with your leasing company directly. Explain your situation and present your case. Speak professionally and firmly, and be prepared to compromise if necessary. Remember, you have the power to walk away if the lease termination fees are too high.
- Remember to review your lease agreement thoroughly before making any decisions
By following these tips and understanding your options, you can avoid incurring costly early termination fees when ending your car lease.