Getting Out of an Auto Lease

Posted: Jan 04, 2011 |Comments: 0 |

When your lease is up, you can simply turn in the keys and lease another car or buy a new one. But how about getting out before the lease ends? Maybe you can't afford the sky-high payments on that silky Jaguar JX V6 model anymore or you've just had a baby and you need a larger and more spacious vehicle?

Getting Out of a Car Lease Tips

In a perfect world, getting yourself our of a lease contract would be as simple as getting yourself into one. As it turns out they can be quite expensive and difficult to get out of. If you were to just walk away from the lease and turn over the keys you would be walking into some hefty penalties. You credit could be ruined and you could even get sued for breach of contract.

It's not all doom and gloom though.

If you're savvy enough, there are actually a number of safe ways out. You can sell the car yourself and pay off the bank the remainder of the car lease. This can be cost effective if the market value of the car is close to the buy-out number. Keep in mind that this option is still a good idea even if you take a slight loss - just think of the termination fees and potential penalties you are avoiding.

The other, and better, option to you however is to have someone else take over your lease and transfer it to them. There is a whole set of potential buyers looking for short-term leases without all the hassle and extra costs. There are a number of car leasing websites on the internet which allow you to advertise your lease if you can't find any family or friends to take it over. Just be sure that you are providing the vehicle in good condition and that the person assuming the lease has a good credit rating.

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