While some are content to follow through with the planned terms of their car leases, others opt to trade their vehicle in early for financial reasons or to get a new set of wheels. Although you certainly can turn in your car before the end of your planned lease term, doing so often also means that you will have to pay extra fees. Before you set your sights upon an early turn-in, consider how much this plan will cost you, and evaluate whether or not it will likely prove worth it in the end.
Basic Lease Termination
All leases have an out clause. The terms of this early termination clause will be spelled out clearly in your lease agreement. While the specifics of each lease termination procedure vary, all include the payment of fees for ending your lease early. In some cases, these fees represent the entire remainder of the amount you owe on your lease term, making early lease return a very unwise financial choice. In other leases, you will pay a reduced amount to turn your car in early, potentially saving you some cash on your lease yet still not leaving you financially unscathed.
Lease Roll-Overs
If you are sick of your current car, but don't want to pay fees for early turn-in, a rollover my be a wise choice. Many car dealers will allow you to roll over your current lease into a lease on a new car. While it may seem that doing this eliminates your previous lease entirely, such is not often the case. In most instances, a small portion of the amount you owe on your current lease is rolled over into your new financing agreement, potentially making the payments on your new lease slightly higher than they would have been had you not returned your other leased vehicle early.
Lease Transfer Options
While potentially challenging to orchestrate, a lease transfer is usually the most cost-effective way of getting out of your lease early. In a lease-transfer, you transfer the lease as it currently stands to another individual. If you can arrange a lease transfer, you can leave your lease early without paying potentially astronomical fees and without damaging your credit score as you would were you to simply stop paying on your lease. To arrange a lease transfer, you can find an interested party and go about the transfer process yourself, or you can contact a company that specializes in lease transfers and allow them to help you move through the process.
Over-Mileage Fees
Much to the chagrin of many, you are often still obligated to pay over-mileage fees if you exit your lease early. Even if you have not reached the mileage limit set for the term of your lease, upon early turn-in of your car, the miles you are allotted will be prorated, and you will have to pay for any miles over the number that you should have accrued at that point in your lease.
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