Leasing a car has its immediate perks like getting a new car every few years, not being stuck with one car, and a lower monthly payment. However, if you feel stuck or you made a mistake, it might be hard to get out of the lease without damaging something else like your credit score. Our team at Western Motors are here to tell you how you can get rid of your car lease.
Help from the Leasing Company
The first option you can try is to ask help directly from the leasing company tha leased you the vehicle you no longer want.You can tell them whether you can no longer pay for the car or that you need more time for payments. This might result in you receiving a fee protection for a few months or a temporary suspension from the deal allowing the leasing company to reevaluate your contract. This will allow you to get your finances in order to continue with the lease or find another way to terminate your lease.
Transfer the Lease
Your best option to getting out of your lease is to transfer it to another willing buyer. You are not terminating your lease just changing the ownership and transferring its burden to a willing participant. You can transfer your lease by third-party firms such as Swap-A-Lease. These third-party firms will find another person that wants your vehicle and do the process of transferring the paperwork and getting you in the clear. There is a transferring fee of course, but it will be worth it if you do not want to continue paying for a car you do not want.
Buy and Sell
If you are unable to find a willing participant to transfer your lease or do not want to pay for the transferring fee- you can always buy the vehicle and then sell it. There is always a lease-to-buy option with every lease car and you can adjust the contract to get this feature. This is called “early buying” and you have to pay early termination fees that can be a range from $200-$5000. To do this you must contact your leasing company and figure out the total expenses because there might be additional fees for maintenance. Then the next step is to sell your car! You can sell your car a private party collector or to a dealership.
Return the Vehicle
If you do not have the funds to buy your lease car, or do not want to go through all the hassle of buying and then selling, you can always return the car to the leasing company. Returning a car before the contract ends will cost you, but it is still better than continuing to pay for a car that you do not want. Returning a car will also attract penalties that you can not waive or ignore. The penalty is a termination fee that is disclosed as a percentage in the lease contract. By comparing the fee to the rest of the monthly payments you will see it will be worth it.
Default the Payment
This step should be your last resort because it is the last approved way to get out of your vehicle lease contract. If the options above will take too much effort, time, and money that you do not wish to deal with you can always stop paying the monthly payments. This will do more harm than good but it gets the job done. You will be ending up hurting your credit score which is important if you will later look for another car. So leave this option as an emergency option and avoid it unless it is absolutely necessary.
Getting out of your lease contract may seem impossible, but if you follow any of the five steps mentioned, you will be out of your contract in no time. Weigh out the pros and cons of each option and choose the best for you considering the time, effort, fees, and any consequences. If you need any more assistance in getting out of your lease or research, contact our team here at Western Motors.