The Correct Way to Handle Lease Termination

The primary advantage of a car lease is that, through lower monthly payments, you can afford a nicer vehicle than if you opted for financing. Leasing, however, is not permanent. Lease terms vary by dealership, but at the end of the lease you must return the car to the dealership. In essence, you are "renting" your vehicle. Whether you terminate your lease at the end of your contract or break your lease early, following the right protocol helps you save money.

Instructions

1

Read through your contract for your options. If you plan to break your lease early, your contract will contain the provisions you must follow when doing so. If the dealership allows you to terminate your lease before the contract expires, your lease contract will stipulate the fee you must pay. If no provision exists, determine how much it would cost you to buy out the lease. In some cases, buying out a lease by paying the remaining payments in a lump sum is cheaper than paying a break-lease fee.

2

Detail the car. This includes washing, waxing, vacuuming and spot cleaning. You can either detail the car yourself or hire someone to do it for you, but returning the car clean saves you from paying the dealership's high cleaning charges.

3

Replace the tires. If your tires all match and still have plenty of tread, replacing the tires is not necessary; but if the tires have little tread left or do not match, the dealership will deduct the cost of a set of new tires from your security deposit -- and you can purchase them cheaper elsewhere.

4

Take the car in for maintenance and minor repairs before returning it. The dealership's fees for routine maintenance and any minor repairs the vehicle requires will almost always be higher than a private auto repair shop's fees. Bring your paperwork with you, demonstrating that maintenance was recently performed, to avoid additional charges.

5

Ask the dealership to prepare your lease termination paperwork while you wait rather than mailing it to you. Just because a car dealership employee tells you that everything has been successfully taken care of and you will receive your security deposit back, you cannot hold the dealership to verbal promises. Get it in writing, and don't leave your vehicle at the dealership until you do.