How Can I Terminate My Car Lease Early?
You get a car lease thinking it won’t be difficult to make payments. But, now you find it difficult and want to exit the car lease early. Here are few ways to terminate your car lease before its expiration.
Swap Your Car Lease
The car lease period may range from 18 months to 24 months or greater. There are many people out there looking for a car lease, but for shorter periods. They do not approach a leasing company directly as the leasing company does not offer car leases for shorter periods. Such people are looking for others who are ready to transfer their car lease. There are many car lease transfer websites where you can advertise your offer. All you need to do is register at such website and fill in the details like the make and model of your car, year of manufacturing, monthly payments, lease period and other details.
If any person is interested in taking over your car lease, they contact you regarding the same. The car lease transfer company helps in transferring your car lease. The company works with the car dealership and prepares documents for the car lease transfer. It also checks the credit score of the new lessee before preparing the lease transfer papers.
When the papers are signed by both parties, you need to hand over the keys and documents to the new lessee. This way you exit the car lease early without paying any early lease termination fees or penalties. However, you need to pay the lease transfer fee to the company that prepares and executes the deal.
Return the Car to the Leasing Company
If the car lease contract does not allow a lease transfer, returning the car to the leasing company is the simplest thing you can do to end the lease. However, it is also the most expensive option as you need to pay the remainder installments, plus early lease termination fees. One good thing about this option is your credit score is not affected and you won’t have trouble getting a new car lease in the future.
Use the Car Lease Buyout Option
Car lease agreements have a buyout option where the car dealership allows the lessee to purchase the car during the lease period. The car dealership calculates the residual value of the car as it expects the value depreciates during the lease period. In some cases, the residual value of the car might be lower than the market value. In such situations, you will pay less to own the car and exit the lease early.
Sell the Car
If you do not want to keep the car purchased through a car lease buyout option, you can sell it and recover your money. However, you need to first find out if the market value of the car is higher than the buyout price demanded by the car dealership.
You need to approach a good car valuation company to find the exact current value of the car. There are also several online tools that will help you find the average market value of the car.