Car leases typically offer lower monthly payments, and you have the option of driving a new car every few years. But oftentimes, situations occur wherein those who lease cars have to get rid of their vehicle. There are multiple ways to get out of a car lease. And sometimes, you can get out of a lease without ruining your credit score.
Return Vehicle to the Dealership
If you have buyer's remorse or simply don't want a leased vehicle anymore, several options are available. Depending on your state and the details of your lease agreement, the dealership may allow you to return a newly leased vehicle within a few days of signing the agreement. Returning the vehicle within this small window lets you cancel the lease agreement without penalty. Read your lease agreement carefully and contact the dealership to see if you're eligible for this provision.
If not, there's also the option of returning the leased vehicle to the dealership before the end of the lease term, and paying the remaining balance. Of course, this may not be feasible if you owe several thousand dollars. But if you're nearing the end of your lease agreement and you're ready to get out of the lease, paying off the lease can quickly terminate the agreement without penalty.
Consider a Lease Transfer
Contact your leasing company and see if you're eligible for a lease transfer. If so, you can find someone (friend, relative or stranger) to assume responsibility for your lease and take over the payments. You can always ask a trusted friend or relative to take over your lease without completing a lease transfer. But in this case, you're still financially responsible for the vehicle, and if they stop paying the monthly payments, the leasing company will come after you for the cash.
With a lease transfer, the leasing company approves the new party for the lease, and the new party is required to sign lease documents. You relinquish all rights to the vehicle, and you're no longer responsible for the payments.
Sell the Leased Car
It's possible to sell a leased car. And if you can't find someone to take over the lease, consider selling the car and using the profit to payoff the leasing company.
First, call your leasing company and request information on your car buyout--which is basically the amount necessary to pay off the vehicle. Inform the leasing company of your plans to sell the vehicle, then place classified ads in local circulars.
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