How to Get Out of a Car Lease

One of the benefits of a car lease is that you don’t have to keep the vehicle for a long time — and maybe not even as long as your lease term. If you want to exit your lease early, there are options that will allow you to without sacrificing time, effort and, in some cases, money.

Related: How Does Leasing a Car Work?

Read Your Contract

The lease contract you signed has a termination clause in it that will likely explain what fees you must pay for early termination. Once you tally the total amount of lease payments owed, carefully inspect your car. Note every scrape, dent, scratch and stain, and don’t forget to check the tire condition and tread depth, too. What you may consider normal wear and tear might not pass muster when you return the car. Of course, also check your mileage. If it’s on the low end, you could spend less to terminate the lease because the car will likely be worth more.

Determine If Your Leased Car Has Equity

If the vehicle has low mileage, is in good repair and is popular in the marketplace, you may find it has equity that may be available to pay off your lease. Research the value of your car to determine if it has equity via Cars.com’s Instant Offer or Your Garage tools. Then, call your finance company and ask for the buyout price of the car you leased. If that price is less than the current market value of the vehicle, you may have equity. That equity may be applied to the buyout price and other charges, allowing you to walk away with significantly fewer costs.

Talk to the Dealership

Although lease agreements are held by finance companies and not dealerships, a dealership may allow you to lease another car if you roll the current fees and penalties from the current lease into your new one. Doing so will result in negative equity, just as if you rolled a loan for a car purchase into a new loan.

Check Pull-Ahead Programs

Some dealers and manufacturers offer new leases before a prior contract expires. These programs may benefit dealers and manufacturers in several ways. Perhaps the leased car you drive is popular, and the dealership’s used-car manager wants more on the lot. Or perhaps an auto manufacturer wants to ensure a glut of frequently leased cars doesn’t hit the marketplace at the same time, so it creates such a program. If you’re tempted to explore such a program, analyze it carefully, just as you would if you chose to turn the car in early without such a program.

Consider a Lease Swap

There is an array of sites that allow lease owners to “swap” cars. Such a deal is especially attractive to those who want short-term leases or those who enjoy frequently changing cars. Before you move ahead, check with the finance company and the dealership from which you leased, as you want to ensure such a swap is allowed (it probably is) and find out what administrative costs you may need to pay. Remember that you may also pay a fee to the company that facilitates the swap.

You will also want to double-check your obligation for the car after the lease. Some finance companies require the original leaseholder to maintain “post-lease liability.” When you do find a prospect to assume your lease, the finance company will most certainly want to check their credit and finances before allowing the swap. One other possible expense is if you have a car that is not popular or is available at low prices, you may need to offer a cash incentive to entice someone to “swap” your lease.

More From Cars.com:

• Should You Buy or Lease Your Next New Car?
• Glossary of Car Leasing Terms
• Benefits of Leasing Your New Car
• More Leasing News
• How Do I Calculate if a Lease Is a Good Deal?

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