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How to End Your Car Lease Early

Published by Joe Webster.

What's in this article?
  1. Bring It Back to the Dealership
  2. Chose to Purchase the Vehicle
  3. Trade It In
  4. Have Another Person Acquire It
  5. Sell It
  6. Word of Advice - Prepare It
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Whatever the reason may be, such as changes in your life circumstances, wanting to purchase a new vehicle, or having to move overseas, you may decide that you want to end your lease before the end date. However, many of you may be a bit fearful that you will suffer harsh financial penalties for doing so, yet that is not always the case. It helps to be aware of the options that you have available and to then chose the one that's best for you.

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Bring It Back to the Dealership

This is the most common way to end a lease early. It is also the option that brings with it the highest financial penalty. By returning the vehicle back to the dealership from which you originally obtained the lease, you will have to pay all of the financial penalties that were outlined in the original lease agreement.

Depending on the particular lease agreement, you may even have to pay extra penalties and pay off any payments that are outstanding.

For these very reasons, this is not the first option that you should consider if you elect to terminate your car lease early.

Chose to Purchase the Vehicle

Regardless of the lease that you have, you can always buyout the lease. You will have to talk to the leasing company, but you will be able to purchase the vehicle from them completely, regardless of which stage the lease is in most cases.

You should consider the resale value of the vehicle, as you will often have to pay an amount that is at least at market value. This can result in you having to ultimately pay more to purchase the vehicle than it is actually worth.

Ship My Vehicle To Another State

Trade It In

Depending on the dealership, you may actually be able to lease or purchase another vehicle if you trade in your current one. However, if you chose to lease a new vehicle by trading your current one in, any of the penalties and fees of the original lease will cause your new payments to be higher.

The one benefit of this option is that, while it is still ultimately expensive, you will be able to pay off the penalties of ending the lease early over a longer period of time.

Have Another Person Acquire It

If another person agrees to take over the lease from you, this is another option to consider. It can be a family member, a friend, or a complete stranger. Many companies act as a middleman in terms of finding someone to take over your lease from you.

To do it officially, the leasing company will often require a credit check plus transfer fees. If the person is located out-of-state, there may be some regulations to consider.

If you do choose this option, find out if you will be held liable if the person you transfer it to defaults on the lease.

Sell It

You should first ask the leasing company what the payoff amount will be. Afterwards, you can consider selling your vehicle to someone else and then paying the leasing company. Even if some of the money to the leasing company still has to come out of your own pocket, it may be cheaper than paying off the lease for the rest of its duration. This is also an option to consider if you want to avoid going over the allocated lease mileage or having damaged the vehicle in any way, shape, or form.

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Word of Advice - Prepare It

No matter the option that you chose, make sure that your vehicle is properly prepared. This means washing and detailing it and checking the tire levels. You want to present your vehicle in the best possible light, as that will help minimize any penalties that you may be charged with and/or allow you to get the most value for it back as possible if you decide to sell the lease to someone or the vehicle itself.

You should also take pictures of it for your own documentation and for insurance purposes.

Ending your lease early is not impossible. Just make sure to explore all of your options before proceeding! Good luck.

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Joe Webster always knew the auto transport industry would be a great career option. And with decades of experience, Joe is now an established consultant for A1 Auto Transport.

Joe was born in Santa Cruz, California. During high school, Joe worked as a mechanic; a job continued to work part-time during his bachelor's degree.

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A-1 Auto Transport is a disclosed agent for the following shipping companies:

CSI Logistics
435 Division Street
Elizabeth, NJ 07201
FMC 22206
Intl Cargo
45 Campus Drive
Edison, NJ 08837
NO. 17858N
Trans Global Auto Logistics, Inc.
3401 E Randol Mill Rd,
Arlington, TX 76011
NO. 018191NF
CFR Rinkens
15501 Texaco Avenue
Paramount, CA 90723
NO. 013055NF
ABC Worldwide LLC
2840 NW 2nd Ave #105
Boca Raton, FL 33431
NO. 025472F
ShipYourCarNow LLC
1160 South Rogers Circle Suite 1
Boca Raton, FL 33487
NO. 025646
Merco Air & Ocean Cargo, Inc.
6 Fir Way
Cooper City, FL 33026
NO. 021869F
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