How to Get Out of an Auto Lease Without Affecting Your Credit

That sport coupe you leased a year ago was the right car at the time for you and your spouse, but with a baby now on the way it will soon become wholly impractical. Your child will be a toddler before your contract expires, certainly not a happy thought for any parent.

There is a way for you to get out of an auto lease without inflicting damage to your good credit. What is more, if you want to come away with a new car, you may be able to do that too.

Instructions

1

Review your lease agreement. Look for a provision or clause outlining early termination fees. Some motor vehicle lease agreements spell out that you must pay off your lease before turning in your car. Other agreements charge you a flat termination fee. If you elect one of these options, expect to pay hundreds, perhaps thousands of dollars to break your motor vehicle lease agreement. If you break your lease exactly according to the terms of your contract and pay all fees, then your good credit will not be affected.

2

Transfer your lease. If the fees associated with terminating your lease are exorbitant, then consider transferring your lease to a new owner. Essentially, you will need to find someone to take over payments, a move---if approved by the leasing company---that can free you from your contractual obligation. If the leasing company approves of the person who takes over the lease, then transfer papers are prepared and related fees paid. This kind of deal can preserve your good credit if done according to requirements as set forth in your motor vehicle lease agreement and lease transfer agreement.

3

Get help to transfer your lease. If you have placed ads in your local newspaper or even used the services of Craigslist.com, Oodle.com, Kijiji.com or other sites and have not been able to find someone to take over your lease, then using the services of a car leasing trading company can help you get out of an auto lease. LeaseTrader.com, Swapalease.com, LeaseTrade.com and other services work to bring people together to take over leases. Acting as an intermediary once an approved customer has been identified, these companies charge a set fee to handle the paperwork and contact the leasing company about the transfer. Once approval is given, then the seller and buyer can meet to transfer the vehicle.