When you decide to lease a car, you sign a contract, and ending that contract early can result in consequences. But if you really need to break a car lease, the following are some ways you might be able to get out of it early, and without penalty:
Sell or purchase the car
If you want to end your lease early because you’re just unhappy with your car for whatever reason, you may have the option of selling it. Ask the dealership if this is an option for you, and do the math first. You might take a loss on the sale of the car, but that loss might still cost you less than the fees you’d be required to pay for terminating your lease early.
On the other hand, maybe you love your car, but you’d rather purchase one instead of continuing with a lease. Maybe you’re putting a lot of miles on the car, and you’re worried about penalty fees because you’re getting ready to exceed the annual mileage restrictions. Instead of breaking your lease, ask your dealership about purchasing the car you’re leasing, which is often an option that is offered to lessees.
Transfer the lease
Another option aside from selling your car to someone else is to transfer the lease to someone else instead. First, make sure that this allowed with your specific lease, and that it can be transferred without penalty. Check your terms and conditions carefully; you also want to make sure that you won’t be held financially responsible if the new lessee falls behind on the car lease payments.
Once you get the green light to transfer your car lease, ask around and see if anybody you know is in the market for a new car and would be interested in taking over your car lease. If there isn’t anybody you know personally who would be interested in taking over your car lease, there are websites out there that can help you out. SwapALease.com and LeaseTrader.com are two good places to start.
Trade the car in
If you’ve just had enough of your current car, and you’re interested in leasing something else, you might have the option to trade it in. Terms and conditions will vary by specific lease, and some lessees may be able to trade in their current car for another and without penalty. However, you may still be required to pay an early termination fee.
Don’t stop making payments
Some lessees might just stop making payments altogether if they want to avoid early termination fees and they want to get out of their car lease. However, giving up on your payments, refusing to pay early termination fees and voluntarily allowing the dealership to repossess the car are all actions that will still have their own consequences. Your credit score can take a tremendous hit as a result, and leasing or financing another car anytime soon after can be very difficult. If you have to get out of a car lease because you can’t afford your monthly payments, contact the dealership and explain your situation. They might be willing to work with you and lower your payments temporarily while you get back on your feet.
Do you need extra cash to catch up on bills and expenses? If you’re receiving long-term payments from an annuity, Peachtree Financial Solutions may be able to buy some or all of your future annuity payments and send you a lump sum of cash. Contact Peachtree Financial Solutions today to learn more and to receive your free quote.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.