I won’t lie to you, getting out of a lease can be tricky business.
A lease can be a great way to get into a new car, but it also comes with a contract. Usually your contract lasts for three years, but this can vary between vehicles. If a new car has caught your eye and you want to end your lease early for it, you’ll probably have to pay hefty cancelation fees. And trust me, while I can’t tell you exactly what the fine print for your specific contract says, these fees can behefty.
Now, there are a couple alternatives to ending your lease that you should know about. But no matter what option you choose, you’ll probably have to cough up a little cash.
The first option is to actually buy out your lease, and then sell the vehicle yourself to make back the money. Since many leases these days come with a buyout option, this is actually viable in many cases. The bigger question, of course, is whether you have the cash to buy out your vehicle. If so, great! You’ve not only ended your lease, you have a car of your own to show for it as well!
Here’s the thing: if you’re buying out your lease with the intention to sell the car, you’ll be hard pressed to make that buy out money back. A new car’s value dips noticeably after its first year, which is what your buyout price will be based off of. If you’re deep enough into your lease, you may find you can sell your car for roughly whatever remainder of its value you paid off. Otherwise, you may have to accept eating a fairly hefty chunk of the cost, as well as taxes and fees in accordance with your state laws.
Truth be told, this can still turn out cheaper than paying a cancelation fee. But again, this depends on the details of your lease contract.
The second option is to actually trade your lease to someone else. Yes, you can do that these days… kind of. Third party resources can be used to hand off your lease and its corresponding car to another driver, but this too comes with a few catches. Many of these sites will require fees of their own. You may even find you’ll still have to contribute some cash to monthly payments to make your lease competitive with others who are looking to end theirs early.
Alternatively, if you already know and trust someone who can take over your lease for you, then that’s a win-win for everyone involved. And make sure you give your friend a hug for doing you a solid favor.
This may sound a little negative, but trust me, I want to help you out and tell you your most viable choices. For that reason, your best option might be to just ask a salesperson about it. If they’ve got a car you’re interested in, they’ll do everything they can to get you out of your situation. Even if the task seems impossible, you might still make something happen with a little know-how and a lot of determination.
Getting out of a lease is hard, but getting into that car you really want is totally worth the effort. No matter what option you choose, I want to make sure you succeed at doing it.