Leasing a car sounds like a great deal: you get the latest and greatest features of a new car without worrying about mechanical issues and maintenance. After a few years, you simply take the car back and ride off in a newer model with a new lease or just return it.
If you leased a car and are under hard financial times, you might be thinking about ways you can end your lease early. Maybe your family is growing and your current lease isn’t practical for you.
How to Get Out of a Car Lease
Trade In Your Lease
The easiest but most “expensive” way to get out of a car lease is to trade it in for another car at your dealership. Usually, most dealerships are ok with you turning in your lease for trade in for one of their newer vehicles.
However, expect to pay a series of early termination fees and penalties. Be sure to read your lease contract and educate yourself on all the fees and penalties listed.
Buy Your Leased Car
Another way to get out of a car lease early is to buy your car in full. Dealers love it when a lessee decides to buy a car outright. After all, it saves them the time and money they would need to invest in the car to prepare and market it for sale. In your lease statements, there should be an area where the dealership indicates the “Buy it now” price.
Before you buy your car, search websites like www.kbb.com to see the fair market value of your vehicle. A buyout can save you hundreds of dollars in fees and penalties from trading in your lease.
Sell Your Lease
There is a market for buying and selling leases. Another buyer may be looking for the car you have and you might be looking for a car similar to theirs. In a lease swap, you essentially find another person to take ownership of your lease and leased vehicle.
The new lessee will continue to make the payments on your lease. Sadly, some dealerships will not allow you to swap your lease, so be certain to read over your contract before you post your lease swap online. If you want to get rid of a car lease, consider selling it.
If you are desperate to get rid of your lease, you have the option of simply driving your car to the dealership and giving them your keys. This should be considered your last option as it will have a large impact on your credit score.
You might also be thinking about simply stopping all payments on your lease, which should never be the case. If you stop making payments, not only will the late payments hurt your score, but so will the repossession that happens after it.
All in all, its common for drivers to end their leases early. If you are in the market for another vehicle and in need of financing, CrediReady can help. Our nationwide network of trusted lenders work with buyers in all credit situations. Take a moment to fill out our free and confidential loan inquiry form today to see how much you can save!