You can get out of a car lease, despite having signed a contract for a set term. Although you can pay to terminate your contract, you have other options available to you that may cost you little or no money at all. Explore your lease-end options to determine which works best for you.
Lease Assumption
You can transfer your lease to another person at anytime during your contract, as long as your bank allows. Most leasing banks require an up-to-date account and require that the lease be at least several months old. Some banks may charge a lease transfer fee. A market exists for buyers who want to take over other people's leases, often because of shorter-term options and lack of down payment requirements. Review the Swapalease web site and LeaseTrader.com to determine if the option is worthwhile. Call your leasing bank before advertising a lease assumption so you can budget for fees if any apply.
Sell Your Vehicle
Consider selling your lease. Even though you don't own the vehicle (the leasing bank does), you can sell it for an amount usually equal to remaining payments due and buyout amount, which is stated in your contract. Call your leasing bank to find out the cost of your current lease buyout and list your vehicle for sale. Check the vehicle's value at Edmunds.com or the Kelley Blue Book web site. You must come up with additional money if the sales price doesn't warrant enough to pay off the lease buyout amount.
Dealer Trade
Trading your vehicle is similar to selling your car. A dealership can assist you with ending your lease early by finding a lender that will allow you to transfer negative equity to a new loan. You can also offer a down payment to decrease your negative equity amount. Call a same-make dealer to find out if your current leasing bank offers any special lease-end opportunities. Some banks may allow you to end your lease up to one-year early without penalty, usually in the event that you lease or purchase another vehicle from the same bank.
Early Termination
You can pay to terminate your lease. This option proves more expensive the closer you are to lease inception. Read over your contract or call your leasing bank to determine your lease-end fees and termination cost. You are likely required to pay any remaining payments due and a bank-determined termination fee. You can also end the lease and transfer the termination balance to a new loan or lease if using a dealer for a new purchase. If the vehicle you want to purchase has rebates available, you can use the discount to limit your down payment amount, if any down payment is required at all.
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