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How To Get Out Of A Car Lease?

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Leasing remains the best option to drive a nice car if you can’t afford the big purchase or the huge monthly payments. However, leasing has its biggest disadvantage. And that could be flexibility.

What does this mean? If you return the leased vehicle before the lease is up, you’ll be faced with a huge early termination fee and other penalties? So, how to get out of a car lease early without penalty?

So, what are our other options? Here are our four best tips on how to get out of a car lease.

Lease transfer

This is one of the most neglected ways when getting out of a car lease early. Ironically, it’s the cheapest choice. The only thing you need to do is to transfer the lease to another person.

How does this work? Let’s say you have about one year left from your three-year lease. The person who wants to lease the car before your lease expires agrees to pay for the remaining months of the term. The key is to find the interested person to take over the lease from you.

The next question would be, where can I find the right person to take over the lease from me? Luckily, we have a list of websites to make your search extremely easy with these three best lease swapping websites:

  • Swapalease
  • LeaseTrader

These websites offer listings that match your specific car make and model with people who are interested in taking over your lease.

What’s good about this option is that you’re not required to pay any early termination fees or other penalties. The only thing you need to be careful about is the transfer fee, which is generally very reasonable (usually around $100-$350).

What’s interesting about this method is it could be just as beneficial for the person who assumes the lease. The biggest advantage is they don’t have to make a huge downpayment as it was already done by the previous leaseholder.

Another thing is some people only need the vehicle for only a short period. This makes lease transfer very desirable for the other person to drive a new car who only needs it for about a year or two.

Here’s a bonus tip to make your lease transfer more attractive. Consider giving an incentive for anyone who takes over the lease. An offer of $500 for that lucky person could just sweeten the deal.

The steps to take for a successful lease transfer:

  1. Notify your leasing company that you plan to transfer the lease.
  2. Find someone interested in taking over the lease and is qualified by the leasing company.
  3. Have both parties sign the contract and pay the transfer fee.

Whether you want to get out of the lease for good or you just want to turn the leased car early so you can get another better lease is up to you.

However, you need to be careful because you’ll be held responsible if the person who took over the lease fails to pay the monthly payments.

Trade the car

The second option is to trade in the leased car and get another one.

You might be thinking, I don’t want another car. I just want to get out of this lease early!

But trust us, this could be one of the smartest ways to get out of your current lease and into a new one.

Let’s say you’re halfway through your three-year lease and you want to get a new car. The dealership will first appraise the value of your current leased car.

After that, they’ll deduct the remaining amount you need to pay for the current lease from the price of the new car you’re planning to purchase.

The good thing about this method is you can trade in your current car for a brand new one. The only downside is you might end up paying more than what you’re currently paying for the lease.

This is because the monthly payments of a brand new car will be higher than the payments of your current leased car. Plus, you’ll need to pay the early termination fee but they can be rolled out into the new payments.

Buyout the leased car

The third option is to buy out the leased car.

Paying the full amount of the vehicle might not be feasible for some people, but it could save you a ton of money in the long run.

How? You won’t need to pay monthly payments anymore since you already own the car. This means you can put that extra money towards other things like savings or investments.

The only thing you need to be careful about is the early termination fee, which could range from $200-$500. But if you’re planning to keep the car for a long time, then it’s worth it.

Sell the car

The last option is to buy the car before the lease ends and sell it. But this can only happen if it’s allowed by the dealership. But you need to be careful with this method because there’s a chance that the lease payoff amount could be higher than the vehicle’s current market value.

This will end up as a loss on your part. However, if that loss is only a small fraction compared to the early termination fees and other penalties, only then would you need to consider it.

In Conclusion

There are a lot of ways how you can get out of your present car lease. But you need to be careful with your choice because some methods could end up costing you more money.

The best thing you can do is to consult with the dealership or the leasing company first. They would be able to advise you on what course of action you should take.

Take your time in deciding and don’t rush into anything. After all, it’s your hard-earned money that’s at stake here.

With that being said, these are our four best tips on how you can get out of a car lease. Consider your options and choose the one that’s best for you.

We hope this article has helped you in some way. If you have any questions, feel free to leave a comment down below and we’ll try our best to answer them for you.

Thank you for reading!

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