Early Lease Exit 101: Escaping a Car Lease ASAP

Though it’s often considered taboo, breaking a lease early is not unheard of. When a person no longer needs a vehicle, finds that it isn’t a good fit for them, or simply can’t afford it any longer, he or she may look into terminating their lease. If you or someone you know is scoping out options for early lease termination, read this post to learn about a few of the choices available to you. 

1. Pay an early termination cost 

Most dealerships understand that some leases must meet early ends. When circumstances do necessitate a lease break, many contracts have procedures in place to help this process along. If you must end a car lease ahead of schedule, there’s a chance you’ll have to contend with early termination fees. These are established costs that a renter agrees to be responsible for in the event that their lease is terminated early. These costs differ based on the dealership and the car, as well as various other factors. Depending on how long you have left on your lease, you may actually save more money staying on it than cutting it off and paying this fee. 

2. Buy the car 

The most considerate lease-breaking method comes down to having enough money to spare. By flat-out purchasing the car, you’ll effectively end the lease. Before doing this, though, you’ll have to give your leasing contract a detailed read. Not every lease allows a car to be purchased prior to the end of the lease period. Buying out a lease will still come with some associated costs, but the end goal here is to re-sell the vehicle and get your money back. Keep in mind that this isn’t a recipe for guaranteed success—if your car doesn’t end up selling for what the leasing company predicted it would, you could still be out some money once the sale has been completed. 

3. Transfer lease 

If buying out your lease just isn’t feasible, there are other options you can turn to when a car lease needs to end. Rather than terminating the agreement entirely, renters can essentially give their lease to another person. If you know someone else who’s interested in the car you’re leasing, read through your contract and see if a lease transfer is allowed. Provided this person meets the criteria laid out by the lender, they can take over your lease and provide the subsequent payments. There will likely still be some fees you’re required to pay, but taking this route will almost certainly be less expensive than a simple buyout. Sites like LeaseTrader and Swapalease can facilitate a lease transfer by helping you find someone willing to take a car off your hands. 

4. Make a trade 

Sometimes, a car that felt right during a test drive may prove to be unfit as time goes on. When a buyer realizes the car they’re leasing is too big, too small, too old, or otherwise unsuitable for their lifestyle, breaking this lease becomes a tempting thought. The good news is if you have a problem with the particular car you’re leasing, it’s possible you’ll be able to trade it in for a model you like. Contact the dealership you’re under contract with and see if they’d be willing to switch your lease to another vehicle. Fees may apply, but many find this preferable to sticking out a lease on a car they aren’t happy with. Ideally, this scenario would end with a buyer finding a car they feel much more comfortable in. 

What does your lease agreement entail? 

Before making any final decisions about handling your car lease, it’s best to consult the agreement you signed when it began. This contract will contain necessary information about fees and tell you if things like trading, transferring, or buying out a lease are permissible. If your lease is overly confusing or filled with legal jargon, speak with someone at the dealership to ask any questions you may have. 

Shop Transwest 

At Transwest, we sell vehicles you won’t want to let go of. With our expansive product line of cars and trucks, you’re sure to find a ride to match all of your needs. Visit one of our locations today, or explore our selection online.