Location: Maplewood, New Jersey
Exterior color: Gray
12 month lease
$249.02 lease payment
Fuel efficiency: 23 city, 33 hwy
Location: La Verne, California
Exterior color: Gray
17 month lease
$246.12 lease payment
Fuel efficiency: 23 city, 34 hwy
It is a fact of life that situations change and so do your transportation needs.
Families expand, new expenses arise and now a car lease that was a good deal
no longer suits your lifestyle. When we walk into a dealership we make a lease
decision based on what our life is at that particular moment and more often
than not we do not realize that the decision we are making will affect us for
at least three years. So what to do? Can I do an early lease
termination of my lease agreement?
Your options are simple:
- Get someone to assume your car lease.
By using this option you are able to transfer a car lease to someone else for
the reaminder of the lease term. Lease Trader will try to locate a new lessee
who is credit worthy so that the transfer goes through. Saving thousands in
early termination costs. If you want to find out more about this exciting option
- Privately sell your car. Call your leasing company and ask for the current
car lease buyout amount. Once you
get that number, look at the Edmunds.com True Market ValueSM price for a private
party. Make sure to adjust the figure for mileage, color, options and region.
If the current market value is close to the buyout number, try to sell the car
yourself and pay off the bank. You are better off than continuing the payments
or walking away from the car, even if you have to take a $1,000 or $2,000 loss.
Remember, in addition to your lease payment, there are insurance payments, too.
(Note: Sales tax can cause a problem if you buy the car, then have to resell
it immediately. The bank may help you by arranging to transfer the title directly
to the new owner.)
- Turn in the keys and walk away from the lease. This isn't a good option.
If you give the car back to the lessor, and walk away, it will go on your credit
report as a "repo."
What to watch out for when I end my Auto lease?
Early car lease termination often results
in overcharges, when the consumer / lessee is forced to go through a local dealer
to complete a lease termination. Even when not required by the lessor, many
consumers terminate their leases upon purchasing or leasing another vehicle.
When they do so, they typically rely on the dealer to get a payoff figure from
the finance company, and end up paying whatever the dealer claims is due. Early
termination can cost the consumer thousands of dollars, and sometimes dealers
will pad termination fees with improper charges.
Not long ago, more than 200 Ford and Lincoln Mercury dealers in California
agreed to pay fines totaling $822,500 for alleged deceptive leasing practices.
The dealers were accused of adding undisclosed and improper charges in calculating
balances due from consumers who chose to terminate their automobile leases early.
Many consumers were forced to take the word of dealers when they sought to
terminate lease agreements because the contracts "were very complex and
almost impossible for a consumer to understand," Thomas A. Papageorge,
head of the consumer protection division at the Los Angeles County District
Attorney's office told the Los Angeles Times in ira July 14, 2000 editions.
This is why getting someone to assume your car lease is the cheapest way to
terminate your car lease early. By using the lease transfer option in your lease
agreement you can have someone else take over your auto
lease and they will use the car to the end of the lease term. At the end
of the lease they will be the ones returning the car to the dealership.