You may want to terminate a car lease early for several reasons. Maybe you’re moving out of province and don’t want to take the car with you, or you want a car with a less expensive lease. Whatever the reason, it’s not always easy to get out of a lease early, and most likely you’ll have to pay a fee to do it. If you’re dead set on getting out of your car lease early, keep reading for 5 ways to do it.
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5 Ways to Get Out of a Lease Early
Transfer the lease: One of the easier ways to get out of a car lease early is to transfer it to someone else. You can use third-party services to do this, and they will find someone to take over your lease for you, or if you know someone wants to take on your lease you can do so. While most leasing companies will let you transfer the lease over to another person, you need to remember that name on the contract will still be yours, and you will be liable if the other person stops making payments.
You will also most likely have to pay a transfer fee to get out of your lease. This can range from $50 to $500 depending on the lease and the company you lease from.
Sell or trade the car: While most people are aware that they have the option to buy their vehicle once the lease agreement has reached an end, many are unaware that you can buy the vehicle from the leasing company at any time. This is known as an early buyout. If you can find a buyer for the car or plan on, this is a great way to get out of your lease early. You should note that again you’re likely going to have to pay a charge to end the lease early; an early termination fee ranges from $200 to $500, plus any remaining depreciation cost.
Return the vehicle: When leasing a car, you always have the option to return the car to the leasing company, but be prepared to pay heavily in penalties. You’ll end up paying a large termination fee and the remaining depreciation of the car. It’s a better option to buy and sell the car yourself to save more money.
Ask the leasing company for help: If you’re looking to get out of your lease for financial reasons, but feel you’ll be in a better place in a few months, you can always reach out to the leasing company and ask for payment relief for a few months. They may agree to suspend your payments for a few months or will lower the monthly payment for a few months. You’ll have to pay back the difference later, but you won’t get extra penalties.
Talk to CarCostCanada: If you want to get out of your lease early, we can help. CarCostCanada.com and LeaseBusters.com are partners, and we can help you get out of your car lease early so you can take advantage of all the new car deals found in your free dealer invoice price report. LeaseBusters.com has been assisting Canadian leasing customers to get out of their vehicle lease since 1990. If you want more information regarding the process of getting out of your vehicle lease or are looking to get a no-charge professional evaluation, fill out a form with your contact information here and a LeaseBusters professional will contact you within one business day or less.