DON’T PANIC: FOUR WAYS TO GET OUT OF A LEASE EARLY
If there’s one thing that plagues the new world today, it’s commitment issues. It’s the reason marriage rates are so low, it’s the reason job change rates are so high, and it’s the reason you need to get out of your car lease and are reading this very post right now.
So how do you do it?
There are a couple different ways you can get out of a lease early. They all vary in their approach and their appeal (meaning how much you’ll have to dish out by the end of it). Here are four of the most common ways people get out of leases early on:
1. Sell the vehicle
Yes, you read that right. A lot of people don’t realize that you can actually buy out your leased vehicle early, and if you find a buyer to pay off the remaining costs you’re home free.
The first thing you have to do in this case is talk to the leasing company and find out the buy out amount which usually consists of a termination fee and any depreciation costs.
The downside of this option is that usually the car will be worth less than the buyout amount, so you’ll have to take the loss. BUT, if you had already put down a nicely sized down payment upfront when you initially leased your vehicle, you have a better chance of breaking even here.
2. Return the vehicle and beg for mercy
You could potentially just return the car to the leasing company and pay all the penalties. But that’s probably the last thing you’d want to do.
You’d end up having to pay a really big termination fee AND the remainder of the depreciation of the vehicle. The leasing company will then sell the vehicle at an auction to pay you back for your damages. The problem though is that the compensation from the leasing company will be the bottom line lowest amount you could ever get for the vehicle. Ouch.
3. Ask for help
If you want to return your car early due to financial problems getting in the way of you being able to make your monthly payments, you could contact your leasing company and ask for payment relief for a few months. Payment relief could include suspending your payments for a temporary amount of time or lower it. You’d have to make up the difference later on but this would buy you some time without having to pay any penalties
4. Transfer your lease
Transferring your lease is probably the easiest way for you to get out of it without having to pay any penalties at all. This means that a person who is also, like you, terrible at commitments wants to lease a car for a short amount of time, will take over the remaining months of your lease and make the payments for you – essentially taking over your leasing contract for you. Lucky for you, Carvoy provides this service absolutely free. Just upload some pictures of your car and the amount of months you have left on your lease, and wait for people to contact you on picking up the remaining payments of your lease. Click here to start.
While some of these options are, obviously, less appealing than others – they all could prove to be the path that makes the most sense for different people’s situations. Which one fits you best?
Check out our exclusive lease deals here.