How to End Your Automobile Lease

One would hope you've carried out your lease agreement to its full term. "Early termination" is such an ugly phrase. In either case, here are some options for you.

Difficulty: Moderately challenging

Instructions

Things You'll Need:

• A copy of the lease agreement
• Loan

1. Read your lease agreement carefully. It will tell you exactly what you will have to pay when your lease ends.

2. Get the car detailed. Bringing in a clean car that looks well cared for will reduce the likelihood of outrageous wear-and-tear charges.

3. Return the car to the dealership, pay your disposition, wear-and-tear and excess mile charges, and walk away.

4. Buy the car for the amount stated in your lease agreement (residual value) plus any additional charges and fees. The residual value is typically lower than the actual value of the car, so this works in your favor.

5. Extend the lease for the same monthly rate or sign a new lease on the same car.

6. Trade your car in on a new one. The car will almost always be worth less than what you would have to pay to buy it from the leasing company, though.

7. Expect to pay big time if you terminate your agreement early. The leasing company doesn't care what your reason is; they just want their money. You'll get hit with penalties and still owe the leasing company all of the remaining payments.

8. Don't fall into the trap of trading your lease in early for another car. Your trade-in will be worth less than its true value (as with any trade-in) and the remaining payments, penalties and fees will be financed with your new lease. Not smart.

9. Take out a loan, pay off the lease, and sell the car yourself if you really need to get out of it. You'll still lose money, but at least you can protect your credit rating.

Tips & Warnings

• Return your car with matching tires that are in good shape. If you have to buy a new set, do it through a tire company. The dealership's price will likely be exorbitant.
• Make sure you get your security deposit back if you paid one.

[enzley]

on 7/11/2008 TakeMyPayments.com has been assisting consumers to exit their leases since March 2000 with the approval of the lease companies. Consider it a win-win-win!

on 8/12/2006 Don't get fooled into thinking they will get you out of lease. These companies prey on our financial problems and are the only ones to benefit. I joined and nothing happened. No emails and no inquiries. In fact, they even lost my records and I had to call in and sort it out. You leased it, it's yours till the end.

on 11/22/2005 There is a new service that gets people out of leases called www.swapalease.com. It is a win-win for buyer and seller because the seller gets out without huge penalties, and the buyer gets a great car at low payments for a short term.
Check it out.