End of Auto Lease Secrets

You might be able to get out of your lease contact early and penalty-free if you plan to purchase or lease again. If you plan to purchase your lease, you may save money by choosing a competitive interest rate from a different lender. You can save money in various ways at the end of your contract, whether you want to return the lease for another vehicle, purchase it or walk away.

Purchase Considerations

Plan ahead for extra fees you'll pay if you want to purchase your lease at the end of your contract term. You can buy the car for the amount stated in your contract as your last payment amount, or lease buyout price. Your leasing bank owns your vehicle until you purchase it, so expect to pay taxes and necessary state fees on top of the vehicle's purchase price. Depending on the price of the leased vehicle and where you live, taxes and fees can add thousands of dollars to your buyout price.

Purchase Options

Some buyers believe that going to the original purchasing dealership to complete a lease buyout is the only way to purchase a lease. Avoid this, if possible. Some leasing banks allow dealerships to increase the price of the lease purchase price to make a profit. Call your leasing bank directly to obtain exact purchase figures. You can then finance the buyout amount anywhere you wish; you do not have to use a dealer. Leasing banks offer competitive interest rates for new cars and lease offers, but when it comes to used cars, you're likely to find a better interest rate elsewhere. Shop interest rates to determine where to finance your purchase.

Optional Inspection

Some leasing banks require a vehicle inspection before the end of the contract term. Even if an inspection is not required, you can call your leasing company or a same-make dealer to arrange an optional inspection. During the inspection, a bank representative checks your vehicle over to determine if your car needs repairs or if you have exceeded your lease wear-and-tear fees. Even if you find that you have to pay your bank for loss of value, you can budget for the costs ahead of time. You'll also have time to fix or repair any issues with your vehicle to avoid charges.

Early Termination

You may not have to wait until the end of your contract to return your lease. Many leasing banks allow lessees to turn in a lease penalty-free if the person buys or leases again through the same bank. So, if you planned to shop a same-make vehicle, you may not have to wait until your contract ends. Call a same-make dealer or your leasing bank to find out about special lease-end offers. Some banks allow up to a one-year early termination period. Some competitors offer the same incentives if you plan to purchase or lease a different make vehicle. If you plan to shop a different manufacturer, ask a dealership if it has any offers to help end your current lease.