Auto Lease Termination
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Is Auto Lease Termination A Viable Option?
The lease contract identifies the conditions under which a lease can be terminated by either party. The way an early auto lease termination is handled will vary depending on the lease company. Costs can also vary depending on the method used to calculate the less balance.
There are several options for terminating an auto lease. Some options are very costly.
We will discuss four options for terminating your lease so you can determine which option is best for you.
Visit auto lease guide to learn about terminating your auto lease contract.
There are several options for terminating an auto lease. Some options are very costly.
We will discuss four options for terminating your lease so you can determine which option is best for you.
Visit auto lease guide to learn about terminating your auto lease contract.
Auto Lease Termination Option #1 - Turning In The Car Lease
Simply but can be costly
The simplest way to end your lease is to return the vehicle to the dealership before the lease expires. You are responsible for the remainder of the lease payments plus any excess wear and tear on the vehicle and any excess miles over and above the maximum mileage outlined in the lease.Visit auto lease guide to learn the insider secrets that car dealers don't want you to know about leasing.
Auto Lease Termination Option #2 - Turning In The Keys And Walking Away
Be prepared for the long term consequences
This is not a good option. If you give the vehicle back to the lease company and walk away it will go on your credit report as a repossession. This may relieve financial pressure in the short term, but a damaged credit score can be costly in the long run as you are unable to obtain credit or will be charged high interest rates for credit products. Auto Lease Termination Option #3 - Lease Buyout
Consider all the cost involved
A process that is a little more complicated is to buy out the leased vehicle from the finance company. You have the option to keep the vehicle or sell it.Contact the lease company to get the current buyout value. The value of the vehicle depreciates the greatest in the first two years. If you plan to sell the vehicle contact a company like Edmunds.com to get the "True Market Value" of the vehicle. If the current market value is close to the buyout price then selling the vehicle maybe a good option.
In addition to your lease payment there are insurance payments as well. Depending on where you live you may also have to pay sales tax.
Take all costs into consideration before deciding if this is a good option.
Visit auto lease guide to learn the insider secrets that car dealers don't want you to know about leasing.
Auto Lease Termination Option #4 - Lease Transfer
A cost effective alternative
A lease transfer has become a very popular form of early lease termination because it is inexpensive and simple.Read your lease agreement or contact the lease company to be sure they allow lease transfers. You will need to pay a transfer fee.
Mileage should be under the maximum mileage allowed per year according to the lease agreement. The vehicle should also be in good condition. Ensure you can provide a copy of all maintenance records.
Listing your vehicle with Swapalease.com is a cost effective way to quickly find a new lessee who is credit worthy.
Learn More About Auto Lease Termination and Takeovers
Tips and tricks to help you get the best deal on lease termination or takeover.
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