How to Stop a Car Lease
Car leases have some advantages in that they normally offer lower car notes than purchases do, and people who lease automobiles are able to obtain a new vehicle every two to five years. But unlike those who purchase a car, car lessees don't own the vehicle, so it's harder to get rid of a leased car than to sell or trade in a purchased vehicle. Even so, it is possible to terminate a lease agreement, and often you can do so without penalty.
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Instructions
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Check to see if the dealership allows returns. If you're dealing with buyer's remorse, quickly re-read your lease agreement to see if you're able to cancel the contract. You may be able to return a lease car within 3 business days of signing the agreement.
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Stop the lease and pay out-of-pocket expense. Terminating a lease agreement prior to the expiration date results in financial consequences. To ward off credit problems, pay off the remaining lease balance and any mileage fees.
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Return the car and walk away. If unable to pay the remaining lease balance, bring the car back to the dealership and walk away from the deal. Be aware of the consequences. The leasing company will sue for breech of contract, and send a negative remark to the credit bureaus.
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Find a buyer. It's possible to sell a leased car. Speak with your finance company to learn the payoff balance, and to ask for permission to sell the car. Place "for sale" ads in the classifieds. Use the money from the vehicle sale to pay the leasing company. Once you receive the title from the leasing company, forward this document to the new owner.
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Negotiate a lease transfer. Read your leasing contract to determine if your lender accepts transfers. Ask someone like a friend or relative to take over the lease, or place ads on a lease trader website such as LeaseTrader.com. The person interested in taking over the lease has to complete an application with the leasing company and qualify for the vehicle.
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Tips & Warnings
Selling a leased car isn't always the practical solution. Before moving forward with this option, research the Kelley Blue Book value of the car. If the amount owed to the leasing company is more than the vehicle's worth, you may not find a willing buyer.
