Premature auto lease termination law in California

Premature auto lease termination could be one of the best options if you are not capable of providing the monthly payments required on the lease. You can also terminate the lease in case you were able to find a car loan that involves payments that are more affordable compared to the premiums that you are paying on a car lease. If this is the case and you are leasing the car in California you are very lucky. This is because California law could help you do this. However you need to a hefty amount of money in order to this. Besides this, there are other things that you need to understand before terminating the lease and these are enumerated below.

“Cool off” period

The law in California regarding premature lease termination could only protect you if the lease contract that you have signed has a “cool-off” period included in it. The cool off period is the specific amount of time where you are allowed to terminate the lease agreement. However, the California law cannot help you in case the cool off period is not indicated on the auto lease contract you signed. In order to avoid being stuck in an expensive or undesirable lease, make sure to deal with leasing companies that provide cool off period for the vehicles they offer for lease.

Other considerations

Terminating the lease anytime you want is guaranteed by California law. However, the owner of the car you leased has also the right to charge an amount to pay for early termination. The early termination charge is actually indicated on the lease contract and you can find the amount you need to pay by checking the contract. However, early termination fees are not constant. The amount involved varies depending on factors such as the length of time that you have been leasing the car as well as the age of the vehicle.

Possible effects

You need to weigh the existing pros and cons before terminating the current lease that you have, Termination cost usually amounts to thousands of dollars. In addition to this, early termination could also affect the credit history that you own.

Free Auto Credit Score

Know YOUR Auto Credit Score?

Free Credit Score

Auto Loans

Get Financed Regardless of your Credit