Wednesday, February 29, 2012

How To Get Out Of A Car Lease Without (Too Much) Regret!

You've loved your leased car but the payments are steeper than you thought to manage. Or maybe you've just been transferred overseas. Or, maybe you just decided you really just don't like driving this car as much as you thought you would! You know that getting into the lease was pretty easy but getting out maybe be a bit more difficult.

It's true that getting out of a car lease is not as easy as paying a penalty fee (like you might if you wanted to end a cell phone agreement) and giving back the car. Those payments that you make every month were calculated on a legal binding agreement and breaking that agreement will be costly. However, the closer you are to the end of the lease, the less it will cost to end it. Find your lease agreement and read ALL the fine print on the back to find out how your leasing company will charge you. The fees will likely be heavy and it may cost up to thousands of dollars to rid yourself of your agreement.

Often the best option is to transfer a lease to someone else. It might seem easy to just let a friend or family member take the car and make the payments but you must transfer the agreement legally to be able to be free and clear of all liability in the event the car was in an accident.

There are companies that work with matching up individuals who want to take over a lease with those that need to get out of a car lease. You can list your lease online and see if someone else would like to take over the agreement. Of course they will have to meet the requirements of your leasing agent such as a good credit record.

There are some other options such as selling the vehicle and using the proceeds to pay off the lease. There is also a way to negotiate an early buyout. You might want to buy your car and own it outright sooner than the end of the agreement. If you are near the end of your lease agreement, sometimes you will be allowed to trade into a new lease through the same leasing company.

Everyone's situation is different and sometimes after weighing all the considerations, holding onto the car and continue in the agreement may be the best decision.

1 comment:

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