How to Break a Car Lease

If you’re in the midst of a financial crisis and need to break a car lease because you can’t continue the payments, you do have options. By transferring your car lease to another person, you’ll be able to break a car lease with minimal fees. Use these steps to familiarize yourself with the possible costs and conditions.

Difficulty: Challenging

Instructions

1. Break the car lease by transferring the lease ownership to another person. To transfer the car lease, you’ll need the approval and cooperation of the dealer to oversee the transaction. You’ll have to pay transfer fees and the new owner will need to complete a credit application and sign a new, shorter lease contract.

2. Use a car lease transfer company to help you find someone to take over your car lease. Although you’ll have to pay an assortment of fees like advertising and transaction costs, they’ll be less than buying out the lease and paying the early termination penalty. Before you break a car lease using a transfer, however, ensure your lease company doesn’t prohibit transfers.

3. Research car lease transfer brokers like LeaseTrader, LeasedWheels, AutoLeaseBreakers and Swapalease to find a reputable company with the lowest fees and the best medium to advertise your car to a variety of clients. When you need to break a car lease, you’ll want to do it quickly, so finding a “buyer” immediately is a must.

Tips & Warnings

• You can also break a car lease with the early termination clause. However, this means you’ll have to pay the total of what you owe on the car lease in addition to lease termination fees. If you’re breaking a car lease because of financial problems, this is likely an unappealing option.
• Check your original car lease for any stipulations about car lease transfers. Some indicate that if the person who takes over your lease stops making payments, you’ll become responsible for the car lease again.
• If you’re trying to transfer your car lease after you’ve used your miles allotted in the lease contract, the prospective buyer of your car lease may ask for an incentive like a cash “bonus” to take over the contract.

[MaryKBrennan]

on 1/23/2009 Wow, I had no idea you could do this. Leases are great when you don't have alot of driving to do. I was promoted in the middle of my lease and went over the miles. What a mess! The things you find out much too late. Great article!

[Kallicat]

on 1/21/2009 Good information to have. I tend to avoid leasing.

[beachmom]

on 1/21/2009 Thank you so much! I was actually looking for info on this for my relative! 5*

[motherNN]

on 1/21/2009 Great advice! I have a friend who leases car after car. It's costly in the long term as well as a never ending cycle. Thanks, I'll pass this on. 5*****