Exit Lease

How To Exit Your Lease Early

There are several reasons why a lessee might want to break their lease before the lease-end date. The following are a few prime examples:

1. If a leased vehicle has excessive extra miles and/or extra wear and tear that would be extremely expensive to pay off at lease-end.

2. If the lessee has grown tired of the vehicle.

3. If a lifestyle change requires a different vehicle.

Exiting your lease does not have to be a painful process if you understand your options. In most cases it is best to attempt a vehicle lease transfer first because this is the most cost-effective method of eliminating your lease liability.

Try to remember that if you are currently in a lease agreement, you are locked into this liability for the remainder of your term. It is not a month-to-month liability. Therefore if you can find someone who is willing to assume your lease or discover a way to exit your lease without paying huge penalties, you are really avoiding a much larger total liability than your monthly payment. You need a little bit of time and patience to exit your lease. Between the buyer, the leasing company, and any third parties you may have to deal with, it's just a small exercise in logistics and patience before you can walk away from your lease.

LEASE TERMINATION

It is often believed that the only option in ending a lease early is a car dealerships’ traditional definition of ‘early lease termination’ in which the lessee is required to pay an early termination penalty plus the balance of the remaining payments.

For example, if the payments are $700.00 per month and 10 months are remaining on the contract, then the lessee owes $7,000.00 ($700.00 X 10 payments) plus any penalty fees.

There are alternatives to paying thousands of dollars in early termination fees by using a Lease Transfer.

 

Signature Auto Group‎- 2319 Avenue X, Brooklyn, NY 11235 (718) 616-2277 ‎
New York Car Leasing - 501 West 45th Street, New York, NY 10036-3402 (212) 586-2277 ‎