“How can I break my car lease in Ontario? Without the penalties that is.” This is a question that we often get asked. Today, we’re going to reveal how you can do just that!
When you first sign a car lease, it can make you breathe a sigh of relief; you’ve made paying for that expensive new vehicle much easier! However, you didn’t think there would be any problems down the road but circumstances have changed, and now you need to get out of that car lease fast and without being on the hook for outrageous fees. In the vast majority of cases, it’s only worth it to break your lease if you have a serious and non-preventable reason for doing it.
In most cases, breaking the lease means you must pay all of the remaining lease payments plus a termination fee, putting a large dent in your wallet. Figuring out how to get out of a car lease early can be costly, but there are multiple options that you can choose from. You won’t be able to escape all the fees, but luckily, there are ways to get out of your lease and keep the costs at a minimum.
Let’s take a look at three ways you can break a car lease in Ontario with the least possible ramifications.
Use the Early Buyout Option
One way to get rid of your lease is to take the early buyout option that’s built into your lease and actually purchase the vehicle. The company will calculate the approximate value of your vehicle and how much you should pay for it based on how much you’ve already paid into the lease.
Once you’ve bought the car, you can try to sell it to a dealership or to someone else. Before you buy, it’s worth getting a dealer invoice report to help you with your purchase. With this method, you aren’t penalized in any way and if you can find a buyer, you can potentially make all your money back too!
Trade The Lease
Another option is to transfer your lease to someone else if your lease allows it. There are people out there who are looking for short-term vehicle solutions; shorter than what a dealership can offer them. By using a lease trading site, you can pass the lease to someone else and have them cover your costs for you. This option will cost the least and have zero financial implications, however it’s important to make sure you check the fine print of your lease to make sure you aren’t held accountable.
Rather than directly terminating the lease, it’s better to communicate to the leasing company that you’re currently in a financial pickle and you need the payments waived for a short period of time. There are quite some companies that will acquiesce to this request, either by reducing lease payments or suspending them for a certain duration.
Of course, you will have to make good on the balance in the future, but this is a very viable option to sidestep penalties at present.
If You’ve Got Leasing on Your Mind, Get a Car Dealer Invoice Report Today!
Dealing with a vehicle loan can be a messy experience. Before you purchase your vehicle, you should get yourself a dealer invoice report. Your report will reveal MSRP, leasing and financing options and recommended dealerships for a make and model of your choice. The negotiations and leasing process will be so much easier for you in the future.