Depending on which bank you lease through and the equity of your vehicle, you may be able to end your lease before the end of your 48 month contract. Ending your lease early is a personal decision that doesn't work for everyone. The best time to end the lease is either before your bumper-to-bumper warranty expires or when you have an opportunity to end it without penalty charges.
The End of the Term
Ending your 48 month lease is less of a hassle if you wait until the end of the term. You won't incur early termination fees or penalty charges if you finish out the contract. Otherwise, you would have to pursue other avenues to get out of the lease; you cannot just walk away from the lease. Waiting until the end of term allows you to start a new lease or finance again without concern. Extra fees apply only if you went over your mileage allowance or exceeded the wear-and-tear allowance.
Pull-Ahead Programs
The bank you leased from may offer an opportunity to end your lease early in the event that you purchase or lease from the same bank again. Call your bank to find out if it offers the option. If you have your eye on a vehicle made by a different manufacturer, call a new-car dealer to find out if its manufacturer offers lease-end options for your type of car. The program is often known as a conquest incentive and serves to entice buyers to come to a new brand. Most pull-ahead programs are offered during the last year of the lease.
Trade-In
Trading out of your lease may prove another lease-end option. During the term of your lease, you pay for expected depreciation based on the term and mileage you agreed to. If the bank was wrong about the lease-end value, you may have equity in your leased vehicle. You can work with a dealer to trade out of your lease early. The dealer must purchase the lease from the bank, but if the value is more than the leased buyout amount, you can use the extra money to put toward your new loan. This is likely to work after you've leased for at least two years.
Early Termination
You can always pay to get out of your lease or transfer it to someone else if you need to. Lease termination is not cheap, so you may not want to terminate it unless you have to. To end the contract, the bank charges you a fee in addition to your remaining payments due. You can also transfer your lease to someone else. A person who assumes your lease must have good to excellent credit. Lease transfers can work at any time during your lease, as long as your bank allows it.
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