There are times when unforeseen circumstances may result in the need for an auto lease termination. Whether it’s because of relocation, job loss or financial hardship if you need to get out of your vehicle lease there are options for you.
Check your lease agreement to see if there are any restrictions on terminating your auto lease. Some lease companies will not allow you to terminate the lease in the first or last month of the lease contract.
Be sure you review all the lease termination options carefully as some are more costly then others.
1. Turn In The Lease Auto
You can simply return the lease vehicle to dealership before the lease expires. You are responsible for the remainder of the lease payments as well as any excess mileage or excess wear and tear of the vehicle. Since you are still on the hook for the remaining lease payments this may not be the best option for you if you are in a financial bind.
2. Repossess The Auto
In this situation you simply return the lease vehicle to the finance company and walk away without paying the remaining lease payments. This is not a good option as it maybe a short term solution to a financial situation but the end result is a damaged credit score. In the future you will be unable to obtain credit or will end up paying very high interest rates for credit products.
3. Auto Lease Buyout
If you have sufficient funds to purchase the vehicle, this maybe a good option for you. You will have the option to keep the vehicle or re-selling it. Depending on where you live sales taxes may need to be paid during the transaction.
4. Auto Lease Transfer
This is one of the most cost effective and popular ways of terminating an auto lease. Check your ease agreement to see if there are any restrictions on vehicle transfers. The process is quite simple. Find someone who is credit worthy and willing to takeover the lease. They pay a transfer fee and the lease vehicle is theirs.