When you lease a car, you agree to make regular payments to the car rental agency, follow maintenance schedules and keep the car for the specified period of time. However, you may need to end the lease before the contract gets over. People often think that they may not be allowed to end the lease early or may be forced to pay a fine to end the car lease before the intended date; but that is not true.
There are several ways in which a car lease can be ended early. You just need to know your options. Some of the most common ways in which you can end your car lease without having to pay a huge fine are:
A Lease Transfer
Transferring the lease is the most common and easiest way to end your lease early. You look for people willing to lease a car and then transfer your lease to the other person’s name. Most car rental agencies allow renters to transfer the lease, but you must be aware of the fact that your name will still remain on the car lease agreement. This means you will be liable to make sure the payments are being made on time. Moreover, you may also have to pay lease transfer fee that ranges between $50 and $500, depending upon the car rental agency from where you leased the car.
Again, in order to transfer the lease you may have to offer incentives to the new party. For instance, you may offer a lower monthly payment.
Trade the Vehicle
Did you know, you can buy the leased vehicle at any point of time? Most renters are unaware of this fact. If you want to end the lease early, start looking for people who might be willing to buy the leased car. If you find someone, you can buy the vehicle from the rental company and then sell it to the third party buyer. However, you may be liable to pay taxes if you sell the leased car to a third party.
If you do not want to pay the taxes, you can consider trade the car in at a dealer. The money offered may be lower, but you need not worry about the selling the car or pay the taxes. Make sure you negotiate the trade-in value to ensure you get the maximum amount of money.
Trade in Your Car for Another Vehicle
You will be allowed to trade in your leased car for another vehicle at the same car rental agency or car dealership, but this is often very expensive. This is because the penalties and fees from your original lease will be rolled into the new contract. This increases the monthly payments.
The last and final option is to return your leased car and pay the penalties to end the lease. But this is not recommended, since you will be made to pay huge penalties. If ending the lease is an absolute necessity, consider the options mentioned above and save yourself from paying huge penalties.