1. Return the car
The simplest way to get out of a car lease is to just return the car to the dealer. You’ll have to pay an early termination fee, however, usually a set dollar amount plus the difference between the balance on your lease and the car’s market value.
Be sure to calculate whether the fee would be more than your remaining monthly payments.
2. Transfer the lease
If you can’t afford the termination fee, you can also transfer the lease to someone else if the terms of your lease contract permit it.
Sites like Leasehackr, Swapalease and Leasetrader will let you list your vehicle and lease terms to find someone to take it over. There may be a charge but it’s usually far less than a termination fee. Check the terms of your contract to see if you’d be held responsible if the new lessee didn’t make payments on time.
3. Roll the payments over
You might be able to roll over your remaining payments into a lease on another car. It will increase your new monthly payments, however, and you could end up paying more than the new car is worth.
4. Buy out the lease
Depending on your contract, you may be able to buy out the lease and sell the car. If the vehicle is worth less than the residual value of what you paid, however, it might not be worth it financially.
Car lease FAQs
Can I get out of a car lease without hurting my credit score?
If you can find someone willing to take over your lease and the leasing company approves, you shouldn’t face any damage to your credit.
What’s the difference between financing and leasing a car?
After you take out a car loan, you are making installment payments to eventually own the automobile outright. You do make payments when you lease, but they don’t go toward giving you equity in the vehicle. In essence, you’re just renting the car. There are also often mileage limits and restrictions on modifications.
Can you lease a used car?
Yes, you can lease a used car, much how you would lease a new one but for less money. Many dealers have what are called certified pre-owned (CPO) vehicles. Inventory is more limited, however, so you may not get the exact make and model you wanted. You may also have to invest more money on repairs and maintenance on a used car than a new lease.
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