Your Guide to Getting Out Of A Car Lease Early
For many, leasing a car is an enticing idea. And besides, who wouldn’t want to drive a brand new car for a low monthly fee that can quickly be traded-in within two to three years— before the vehicle ever breaks out of warranty?
Yeah, you’ve signed up for a car lease, assuming it’s all wrong, but you’re stuck with it. And now you feel you need to get rid of this disaster as soon as you can because you are unable to keep up with the monthly payments.
Well, many people are also in the same boat. That’s why we’ve decided to help anyone out there fighting their car lease. This article will discuss the top five ways of getting rid of your current car lease. Let’s get into it.
Transfering Your Lease
So end your car lease contract sooner, the number one thing you can do is to transfer it. The question now is who wants to take on the burden of leasing your vehicle. Okay, here’s the thing, there are a range of third-party companies offering this service. Swap A Lease or Lease Trader are the most common. We don’t take the burden on themselves, but we bind you to people who want to pass the rent to them. You will also need to pay a transfer fee that ranges from $50 to $5000.
Purchase Then Sell The Car
Many people just don’t know they have the option to purchase the car from the leasing company at any time during their lease period. This is considered an early buyout, and you will have to pay an early termination fee that ranges from $200-$5000 to any depreciation value. However, the first thing you need to do is figure out the sum of the payout. Ask the leasing company for it directly. The next step is to find someone willing to buy your vehicle. Remember that you may have to pay taxes when you buy a car from a leasing company and then lease it to a third party. To read more about it, you can visit the DMV website of your country. Many states may have an exemption. You may either sell the car to a private party or turn it in at a dealership.
Give the vehicle back to the leasing company
This simple and straightforward step you can take to get out of the lease is to end the lease before the end of the contract. You can return the car directly to your lessor, but it will be subject to penalties for early termination of the lease agreement. This penalty is known as a termination fee that is usually a large sum. The cost of this fee can be compared with the cost of monthly payments. It will help you to understand whether it is worth paying this termination fee or whether you really should go for it.
Getting Help From The Leasing Company
This is one of the more drastic approaches you can undertake before you go to the following step. You should call the leasing company and let them know you are in financial trouble and you need some time to get back on your feet. That move would be particularly appropriate if you are faced with a sudden financial crisis and you do not want to cancel the lease contract right now. For a few months, they may give you a compensation relief and temporarily suspend your contract. You can use this time gap to get back on your feet and continue your lease without penalty.
These were five ways of getting out of your leasing term faster than its date. All of the approaches above have their own advantages and disadvantages, such as being too costly or too risky. The lowest cost and least risky option is to purchase and then sell the car. You can either go for it as a starting point or even ask for help from the leasing company (if you want to retain the lease agreement). If you have any more questions feel free to give us a call at (559) 206-2179 or visit our Fresno dealership at 5272 N Blackstone Ave, we look forward to helping you!