There could be many reasons why you want to get out of your car lease. Maybe you’ve realized it’s too expensive. Or better yet, you’ve realized that the car just isn’t for you. Whatever the reason may be, getting out of a lease can be tricky. If you’re not careful, you could end up paying large fees.
In this article, we will go over a few ways that you can get out of your car lease without breaking the bank.
What Are The Main Reasons People Try and Get Out Their Lease
There are multiple reasons why people want or need to get out of their car lease. The most common reasons are:
The Car Is Too Expensive
This is probably the number one reason people try to get out of their leases early. Monthly payments, insurance, and gas can add up.
Safer Car For Family
If you have a family, you may want to upgrade to a safer car. This is especially true if you have young children.
Job Changes
Sometimes job changes include longer commutes. If the car someone is leasing isn’t great on gas, they may want to consider trying to get out of their lease to get a more gas-efficient car.
Just Want a Change In General
Sometimes people just want a change. If you’re bored with your current car or just want something different, getting out of your lease may be the best option.
What Are The Downsides Of Trying To Get Out Of Your Car Lease?
Before we get into how to get out of your lease, let’s first go over the potential downsides.
Early Termination Fees
The biggest downside is that you will likely have to pay an early termination fee. This fee can be quite expensive, sometimes costing as much as the remaining payments on your lease.
Can Affect Your Credit Score
There are many fees when it comes to your lease, and if you’re not careful, you could end up defaulting on your payments. This can lead to your credit score taking a hit.
If your credit takes a hit this could make it difficult for you to get approved for another lease or even a mortgage in the future.
Disposition Fees
When you turn in your leased car, the dealership will inspect it for damage. If there is any damage, you will likely be charged a disposition fee. This fee can range from a few hundred to a few thousand dollars depending on the severity of the damage.
What Is a Good Way To Avoid All Of These Hassles?
If you’re looking to avoid all of these hassles, the best thing you can do when you get a lease in the future is to review the terms and conditions carefully. This way you will know exactly what you’re getting into and won’t be caught off guard by any fees.
Now that we went over some of the downsides of getting out of your car lease early, let’s go over some ways you can do it without breaking the bank.
Find Someone To Take Over Your Payments
One way to get out of your lease is to find someone to take over your payments. This person will essentially be taking over the rest of your lease and will be responsible for making the remaining payments.
To do this, you will need to find someone who is qualified and willing to take over your payments. You will also need to get approval from the dealership or leasing company. Once you have found someone and have gotten approval, you will be released from your lease and will no longer be responsible for the payments.
The financing company will look into the person taking over the lease to make sure they are qualified and have a good credit score. Not every single lease will be able to be transferred so it’s important to check with your particular company to see if this is an option.
Pros and Cons Of Getting Someone To Take Over Your Lease Payments
There are a few pros and cons to this method that you should be aware of.
Pros
- You will no longer be responsible for the lease payments.
- Once the transfer is complete, you will be free from your lease.
- This is in most cases the cheapest way to get out of your lease.
Cons
- You will need to find someone who is willing and able to take over the payments.
- You will need to get approval from the dealership or leasing company.
- Depending on the deal, you may be liable if the person doesn’t end up making the payments. It’s important to make sure that the lease swap is done through the finance company, and not a company that will still hold you liable.
Jump Into a New Lease With The Same Dealer
Another option would be to jump into a new lease with the same dealer. This way you can trade in your current car for a new one and start a new lease. This isn’t always possible, but sometimes dealerships have incentives for people who are looking to do this.
For example, they may offer you a lower monthly payment or a longer lease term. If you’re interested in this option, it’s important to talk to your dealership about what they can offer you.
Pros and Cons Of Jumping Into A New Lease With The Same Dealer
Here are some pros and cons of this method.
Pros
- You can trade in your current car for a new one.
- You may be able to get a lower monthly payment.
- You may be able to get a longer lease term.
Cons
- This option isn’t always available.
- There may be some hidden fees. Make sure you take a good look at the agreement before actually going for it. The cost of doing this a lot of times is very high.
- If your financial situation has changed, you may not be able to qualify for a new lease.
Switch To Financing
If you’re interested in keeping your current car, another option would be to switch to financing. This way you can make monthly payments until the car is paid off and then own it outright.
To do this, you will need to get approval from the dealership or leasing company. You will also need to qualify for financing. Once you have been approved, you can make the switch and will no longer be under a lease agreement.
Pros and Cons Of Switching To Financing
Here are some pros and cons of this option.
Pros
- Every payment you make goes into the equity of the car and once it’s paid off, you own it outright.
- Unlike going from lease to lease, you don’t have to worry about mileage restrictions. You can drive as much as you want without having to pay extra.
- Once the car is paid off you won’t have as many monthly payments to worry about.
- You can customize the car to your liking, being that you will own it.
Cons
- When it comes to leasing, payments are usually lower than financing. Financing could be a couple of hundred dollars higher per month which isn’t good if you have a lot of expenses.
- Vehicle maintenance throughout the years will be your responsibility.
- Vehicle values, unless you finance certain cars, don’t appreciate as homes do, so you may not get as much money back if you do sell it.
Buy the car (then sell it)
Another option to get out of your lease would be to buy the car and then sell it. You would need to get approval from the dealership or leasing company to do this.
If you decide to go this route, make sure you do your research on the car’s value. You don’t want to end up upside down on the loan, which means owing more than the car is worth. If you’re desperate to get out of your lease though, this may be the best option.
Pros and Cons Of Buying The Car And Then Selling It
Here are some pros and cons of this option.
Pros
- You can get out of your lease agreement and eventually into a new one.
- If you do your research, you can sometimes make a profit off of selling the car.
Cons
- You will need to get approval from the dealership or leasing company.
- You will need to qualify for financing if you don’t have the cash upfront.
- You may end up upside down on the loan, which means owing more than the car is worth.
- Negotiation might be hard with the dealership or leasing company.
- There also may be fees associated with buying out your lease.
Work with OzLeasing
With Ozleasing, we make it easier to get out of your current lease and into a new one. We will work with the dealership or leasing company to get you out of your old lease and into a new one with us. We will also work with you to find a car that meets your needs and budget. Once you give us your information on your car including your VIN and other important details, we will figure out your best option to trade in your lease.
If you own the car outright, we will give you an estimate within three hours on what your car is worth and how much we can give you for it.
Pros Of Ozleasing
- There are many vehicles to choose from.
- You will get a personal Concierge every step of the way to make sure everything goes smoothly.
- You don’t have to step foot into a dealership if you don’t want to.
- You can trade in your current car and get a new one without having to go through the hassle of selling it yourself.
Other Frequently Asked Questions
Do you lose money buying out a lease?
It depends on the terms of your lease and what kind of deal you’re able to get. In some cases, you may be able to buy out your lease for less than what you would’ve paid if you stuck it out until the end. However, there are other times when it may end up costing you more money in the long run.
Is it a good idea to trade in a leased car?
Again, it depends on the terms of your lease and what kind of deal you’re able to get. If you’re able to trade in your leased car for a new one with a lower monthly payment, then it may be a good idea. However, if it’s going to cost you more money in the long run, then it’s probably not worth it. If you’re doing it to make things better for your family and you’re good financially, then it might be a good idea.
What are the benefits of leasing a car?
There are a few benefits to leasing a car. One is that you’re usually able to get a lower monthly payment than if you were to finance. Another benefit is that you’re usually only responsible for maintenance and repairs up to a certain amount.
What are the downsides of a lease in general?
The biggest downside of leasing a car is that you never actually own the car. This means that you’re never able to sell it or trade it in for its full value. You’re also responsible for any damage that’s done to the car, even if it’s beyond your control. This can end up costing you a lot of money if you’re not careful. Lastly, if you go over the mile limit, you’re usually charged a fee.
Does leasing a car build credit?
Paying your lease on time is a lot like paying off your credit cards right away. It shows that you’re responsible with your money and it can help to improve your credit score.
Conclusion
We hope this article gave you the answers to your questions when it comes to getting out of your lease early. We understand that things don’t always go as planned, and sometimes you need to get out of a lease early.
Ozleasing is the best way out of it. We will do our best to get you out of your current lease and into a new one that better fits your needs.
We have a wide range of options for you to choose from and we’re here to help you every step of the way. Contact us today to get started!