If you want to get out of your lease contract, you may have several options available to you. Paying to terminate your lease with your bank is likely the most expensive avenue you can pursue. Explore your other lease-end options to choose one that saves you the most money.
Pay to Terminate the Lease
Pay to terminate your lease at any time during your contract. This lease-end option is the most expensive you can pursue. To terminate the lease contract, most banks require lessees to pay all payments due until the end of the contract in addition to a termination fee, which is a set price determined by the bank. This one-time charge is likely to cost $1,000 or more. Call your leasing bank to determine the cost of termination. Over-mileage or wear-and-tear fees are not included in the termination fee.
Manufacturer Lease-End Programs
Many manufacturers offer incentives to end a lease early, but only in the event that you lease or finance through the same bank again. This opportunity is likely offered during the last year of a lease. Most manufacturers send mail to offer lease-end incentives, but you can call monthly to inquire about the bank's lease-end offers. If you can take advantage of a lease-end offer, you won't have to pay any termination fees. Over-mileage and excess wear-and-tear fees still apply; they are not waved for incentive purposes.
Sell or Trade Option
You can purchase your vehicle from the leasing bank or sell it at any time. Obtain a lease buyout quote from your bank. You can sell your vehicle privately for the buyout amount; if you owe more than the car's actual private sale value, you'll have to come up with the additional money needed to satisfy the bank's buyout amount. This amount may prove cheaper than a lease termination. You can also trade the vehicle to a dealer toward another trade; you can transfer, or roll over, any excess balance toward a new loan or provide a down payment.
Lease Transfer
A lease transfer option is worthwhile, especially if your contract is new. If your leasing bank allows it, you can transfer your contract to another party; the new lessee must abide by your original contract terms. Check with your bank to find out if it allows lease transfers. Many banks require that an account be in good standing and at least several months old. Some banks charge a transfer fee, which is usually around $500, as of 2011. You may pay the transfer fee or transfer it to the person assuming your lease.
0 comments:
Post a Comment