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Can You Break A Car Lease Early?

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Are you planning on breaking your car lease early? Yes, this is possible but you have to pay the early termination fee that comes with the lease contract. Moreover, the amount will depend on the remaining lease terms and the overall cost of the lease.

However, there are other ways you can get out of a car lease early without terminating the contract. In a nutshell, early termination of the lease is not the best move if you consider the substantial amount you’ll have to pay.

But there are alternatives to make this work in your favor. So, are you ready to learn more about breaking a car lease early? Let’s teach you how.

3 Ways to Break Of The Lease Early

The fastest way to get out of a car lease is early termination. However, this isn’t the best way if you don’t want to compromise your finances. The good thing is, there are cheaper ways you break out of the car lease early.

Early termination

The most common way to get out of a lease is through early termination. In most cases, car dealers and leasing companies allow early termination of the lease. However, you should be aware that this choice comes with a hefty fee.

The amount will depend on different conditions. But in general, it would be 50% of the remaining lease payments.

Moreover, you’ll be liable for any wear and tear that exceeds the allotted amount in the contract. So, if you’re planning to return the car in bad shape, then this is not the best way to go.

Transferring the lease

Another way to get out of a lease early is by transferring it to another person. This is perfect if you need to move to a different state or country for work.

The good thing about this method is that you won’t be charged any early termination fee. However, there are other things you need to consider before transferring the lease.

For instance, the new lessee has to meet the requirements set by the dealer or leasing company. Moreover, you’ll still be liable for the lease payments until the contract is up.

So, if the new lessee fails to make a payment, you’ll be held responsible. This is why you must screen the person carefully before transferring the lease.

Lease Buyout

The last way to get out of a lease early is by buying it out. This means that you’ll have to pay the remaining balance of the lease contract in one lump sum.

The good thing about this method is that you’ll own the car outright once the buyout is complete. However, the amount can be quite expensive depending on the terms of the lease.

So, if you’re planning to buy a new car after the lease, this might not be the best option for you.

What’s the best time to get out of a car lease early?

The best time to get out of a car lease early is when the value of the car is higher than the remaining balance on the lease. This way, you can sell the car and use the money to pay off the balance.

Moreover, you won’t be charged any early termination fee if you do this. However, you have to keep in mind that the value of the car depreciates over time.

So, if you’re planning to get out of the lease early, make sure to do it at the right time.

The worst time to break out of a car lease

On the other hand, the worst time to break out of a car lease early is when the value of the car is lower than the remaining balance on the lease. This means that you’ll have to pay the difference out of your pocket.

Furthermore, you’ll be charged an early termination fee if you do this. So, if you’re planning to get out of a lease early, make sure to do it at the right time.

In Conclusion

If you find yourself in a situation where leasing a car is no longer feasible, then don’t worry. There are ways you can get out of the lease early without breaking the bank.

Just remember to consider all your options carefully before making a decision. And always keep in mind that the best time to get out of a car lease is when the value of the car is higher than the remaining balance on the lease.

Breaking a car lease early is possible but it comes with a price. So, if you’re planning to do this, make sure that you understand the consequences first. Weigh your options carefully and choose the one that’s best for your situation.

Do you have any questions about breaking a lease early? Let us know in the comments below!

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