Although references that explicitly talk about the best way to get out of a car lease are easily found online, terminating the contract before the end date is probably still one of the most expensive things that one needs to pay. People who need to terminate the agreement early typically deal with conditions, such as lifestyle changes, decreased income, or simply boredom. When it happens, they have no other options but to break the lease, and they need to pay a considerate amount of money as a penalty. Fortunately, there are ways to terminate the contract easily. If you are one of those people facing similar problems, below are the steps that you can take.
Transfer the Lease
Transferring the lease contract to other people using a third party service is one of the most common and easiest methods that people can try. Leasing agencies usually allow you to transfer the lease to other people, but the process often requires you to hire certain services to help you. However, note that your name will still be on the contract, and, in some cases, the contract still demands payments from you when the person you transfer the lease to stops making payments. When it happens, the agency will charge you a certain amount of money, and it usually ranges from $50 to $500.
Sell the Vehicle
Selling the vehicle as a way to get out of the lease is indeed less popular compared to the first option. However, it is possible and legal to do so. Many people are not aware of the fact that they can buy a leased vehicle, which people refer to as an early buyout. In short, you can quickly terminate the contract if you can find a buyer.
If it is indeed your choice, the first thing you need to do is to communicate and discuss your options with the leasing company. It is not advisable to speak through the dealer as it can lead to additional charges. Another thing to highlight is that, depending on the state you are living in, you may still need to pay taxes even after the vehicle is sold to a private party. Thus, it is better to check the regulations before you proceed with the plan.
The last option you have is to follow the standard procedure even if it means you need to pay the penalties. If it is the only option you have, you need to prepare a large amount of money to cover the contract termination fees and the depreciation of the car.