How to Refinance an Auto Lease
It's not unusual for a consumer to walk away from a car dealership wondering whether he got a good deal on a lease. Slick salespeople and leasing jargon such as "money factor" (which is simply the effective interest rate applied to the lease) can add to the apprehension. But you do have options even after signing the lease. One of these is refinancing the lease.
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Instructions
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Call your financial institution and ask for your vehicle's payoff. This is the amount the vehicle can be purchased for outright. Ask for the payoff amount without tax, and find out when the payoff is good through. Depending on when your monthly payment is due, your payoff information can be good for three weeks--or three days.
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Check out websites such as LowerMyLease.com. Enter the current payoff (without sales tax), year, make, model and current mileage. You will then be shown different lease options. Choose the amount of months, mileage per year and amount of money down for your new lease. The site will search all major banks that have attractive lease offers. In some cases, you may even end up leasing your vehicle from the same bank.
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After reviewing your new lease options, submit your information (credit application) and have a copy of the contracts sent to you. Review all of the contracts and sign and send them back. Your vehicle will be paid off by your new lender, and your new lease will begin.
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Tips & Warnings
Consider buying rather than leasing. LeaseCompare.com will give you the option of leasing or financing the purchase of a vehicle. Upon comparing your total costs for leasing vs. the costs for buying, you may find that financing a purchase is a better option in the long run.
Some financial institutions may impose penalties if you end your lease early or have your loan bought out by a new lender.
