How to get out of a car lease

There are actually a lot of ways on how to get out of a car lease. Some of these ways are expensive while some would not cause you to spend even a single centavo. A good example of getting out of a lease without penalties s is by purchasing or leasing a brand new vehicle within a year before your current lease term ends. It can also be transferred if the leasing facility allows it. In case you are stuck in an expensive lease, you might need to explore other options on how to get out of it by doing the following.

Negotiate with the dealership or private sellers

  1. Contact the leasing institution where you lease your car and inquire if the bank is offering a “pull-ahead program” or a policy that allows early termination of lease that is free of charge in case you would conduct a new lease or purchase.
  2. You also need to ask the representative of the bank regarding the amount needed for the buy-out of your current lease. The buy-out amount is the cost that you would be paying if you buy the vehicle you are leasing up front. This would serve as the basis of the car’s price in the event that you would sell it or offer the vehicle for trade-in. Make sure to remember this amount or write it down.
  3. Try to work with the dealership in case the pull-out program or the penalty free termination of the lease applies to the lease that you have. Always bear in mind that in order to take advantage of the “pull-ahead program” you need to lease or buy a new vehicle. It is advisable to transact business with the same make dealership in order to determine if another lease or finance would be working for you.
  4. You can also trade-in your vehicle if you wish too. The best way to do this is by taking the car to a dealership and check if the value of the trade-in would be enough to trade for another vehicle of similar or different make.
  5. Selling your car could also be a good option. You can use the buy-out amount of the car in order to do this. Make sure to pay the buy-out amount so that you would be able to secure a release of lien from the leasing company.

Repossession or termination of lease

  1. Contact the leasing facility or the bank where you lease the car and ask if they allow transfer of lease to other person. If they have the policy that allows you to transfer the lease, try to determine the cost of early termination of lease as well as the other payments involved.
  2. Promote your lease transfer offer by using websites such as LeaseTrader or Swapalease. This service is offered for free by these websites and it can possibly help you find an individual that would assume your lease.
  3. In the event that you have found someone who would assume your lease, sign the necessary documents required by the bank in processing the lease transfer. Make sure to follow the requirements set by your state’s motor vehicle division. A good example of this is returning your car’s plate as soon as possible.
  4. In case of voluntary repossession, bring your car back to the dealership. Make sure to include the keys of the car and the owner’s manual on the items that you would return. Sign the required documents that would terminate your lease. Request for a copy of the document you signed and remove the plates from the car. Don’t forget to pay the lease termination cost before walking away.

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