Do you have a car lease that you want to get out of? Today, getting a car on lease is an option adopted by many people who love driving and wish to change cars frequently. But when you take a car on a lease, you are still bound by a long-term agreement where the renter is committed to paying the balance until it reaches the residual value.
Also, there are many reasons you may want to lease your car early. You are shifting to a new place, or a pandemic like today has made it hard for you to maintain it or pay bills. However, you must have heard people saying it is a tedious process, and you will have to bear with some penalties. Well, it is true but breaking a car lease is still doable. So, How to get out of a lease car? Well, I am here to help you with that. You still have some options to end a lease early by taking these steps quickly.
Tip – Before you decide which option you want to choose, review your lease contract and collect the following information:
- How many more months are remaining in the lease
- Your monthly payment?
- The amount of added lease-end fees.
- The residual value, the cost to buy your vehicle at the end of the lease.
Here are some best ways to get out of a lease car
Sell your car
The first and the best option is to sell your car to the dealer. If this option works, you just have to hand over the keys and walk away with no further financial commitment. Also, to get the best price for your car, you must go to the same brand to sell it. It not only has greater chances to end a lease early, but you can also get a good price.
You must also check if your residual value is low and your payments high- you might still be on the hook for a lot of money. Do not forget to keep exploring your options.
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Swap your lease
Find someone to swap the lease period with you. All you need to do is find someone ready to take the lease from you. The new lessee will now own the responsibility of any further payments. Fortunately, many websites make the job easier for you. These websites are like dating websites for your car lease. You have to fill in the details- and you get all the potential buyers. Do not forget that getting someone else to assume your lease usually is not free. Using a trading website to facilitate the transaction will usually cost between $100-$350 to you.
CarLeaseDepot.com, Swapalease.com, and LeaseTrader.com are some companies that expertise in lease transfers and handle the transfer procedure by working directly with your lease company.
However, it is still better to pay that and not penalties to your lease owner. Ending your lease with this method has the lowest cost because you only pay the administrative fee added in the transaction. The original lessee can now walk away from the lease agreement, avoiding a possible significant financial hit without any scratches on their credit bureau.
You can also transfer your lease to family members or friends to take over the monthly payments. However, you must make sure the person you are transferring the lease to meets your lender’s credit requirements. You must also check if transferring lease is legal in your state. The person you are transferring the lease to should be trustworthy and responsible, because you might still be at hook for the lease.
Check our guide on Can I get my repossessed car back?
Buy your car, and sell it.
Buying that car is also an option for you. Majorly all lease contracts allow you to buy the vehicle during your leasing period for a predetermined amount — that early buyout price. You still have to arrange the money for it. So, either you arrange the cash or take a loan for it. However, if you find someone and sell the car privately, it will bring a greater price than the trade-in or purchase figure from a dealer. However, it will need time and some money for advertising to find a potential buyer.
Buy your leased car
In some situations, buying your lease early and purchasing your vehicle is the best option. Majorly every renter will allow you to pay off the lease and provide the ownership of the car.
Maybe you will prefer to keep the car only your monthly payment was lower. The downside is that you would be extending your financial commitment to lower your payments.
Conclusion- how to get out of a lease car
You must there are many ways on how to get out of a lease car. But you must do your research and market check well. What worked for everyone may not work for you. Thus exploring every option possible is something you should always do. There are many options for breaking a car lease- but as you see, it is not free, and none of them are easy.
You must make sure make sure the cost to terminate early is less than the outstanding costs you have to pay if you keep your lease. I hope you find the best way to end a lease early and get the best deal for yourself.
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