How to Get Out of an Auto Lease

You may have decided to lease a car because you figured it would cost less. If you find yourself in a situation where you need to break the lease, you have a few options. Remember, though, the dealer offered a lease based on the car's value at the end of the contract and recapturing the balance of his cost with interest, all in the form of monthly payments. So breaking a lease will probably not work out in your favor.

Difficulty: Moderately Easy

Instructions

1. Downsize. Your car may be worth more than you thought; and if the dealer agrees, you could find a car with a smaller price tag that you could lease for less money per month.

2. Check with the leasing company about their policy concerning lease transfers. Many dealers will refuse to allow a transfer early in the lease or near the end. Some don't allow it in any circumstances. If your company allows one, you may still be liable for the payments if the person re-leasing your car fails to pay.

3. Transfer the lease to another person. Certain companies match people with leases to others who want to take over the remaining payments on a car lease. These companies charge a fee for their service, but it is typically much less than continuing lease payments.

4. Take the car back to the dealership if you cannot downsize or transfer your lease. However, unless you put a lot of money down or had a significant trade-in to reduce the payments, the car will not be worth what you still owe on the lease.

5. Be ready for a surprise. If you take the car back, the dealer will probably sell the car at an auction. He will then take the amount you still owe, reduce it by the price he sold the car for, and determine the the difference you owe.

References

• About breaking leases

Resources

• Swap A Lease
• Lease Trader
• Take Over My Payments