Best Options for Getting Out of a Car Lease
Car Leasing is incredibly appetizing to folks in the market for a new vehicle. They offer a low-risk opportunity to get into the latest models! Instead of dealing with a long-term commitment or a massive loan, they over low payments and convenience. No worrying about selling a car to be able to afford the next one! For many, they are the optimal method to get into the hottest new vehicle on the market.
Still, for some people, car leasing may not work out well. Over time, some people may find that leases are too much for them to handle. They may find that the car, truck, or SUV is more than they really need and decide to downsize. Maybe the payments are no longer doable, and opting for a less-expensive used car now makes sense. Circumstances in life may change with relocation or personal reasons – even a moderate move could make the mileage restrictions on leasing a concern.
Car Leases are fairly ironclad and really go to lengths to protect the dealer. Still, there are some ways to get out of them. Some are run-of-the-mill and often work for the lessor and the lessee – others are a bit more creative and not without problems. So how do you get out of a vehicle lease that no longer works for you?
Your lessor can help you; after all, they may be hoping to get a recommendation from you or your business again. Going right to them and trying to work out what to do is a great way to get off the right foot. Here are your best options to get out of a vehicle lease that no longer works for you.
Lease Transfer or Lease Swap
The easiest way to go about it is to get a third party – another lessor or a transfer company interested in using your vehicle or thinking they can find someone who will be. One example of a site that can help you find someone to take over your lease is Swapalease.com. You can’t just hand over your vehicle to someone, though. It would help if you made sure that the paperwork is squared away. That helps ensure that anything goes wrong and that you are free of liability or financial responsibility. The best news? This process usually costs no more than a few hundred dollars. You’ll come off free and clear, with no credit impact. This is the best available option in almost every case.
Lease Payoff or Buyout
Pretty much the same thing, just two different ways of going about it. This involves you, the lessor, paying off the vehicle and taking ownership. While this may seem counterintuitive if you are trying to get out of lease payments, it may allow you to get loan payments over the long term, reducing the monthly impact. Also, as you are now the owner, you could opt to sell the vehicle outright and use that money to pay off the lease and loan.
Ask the Car Leasing Company for Help!
Lease companies aren’t heartless. They completely understand when things come up. Simply talking to them might be fruitful, especially if yours is expected to be a temporary problem. This won’t actually get you out of the lease, but it may help. Even an extra month or two of relief could allow you to extend the time you have to find a transfer, a payoff loan, or another way to get out of the lease.
Not Quite as Beneficial
This won’t be quite as good for you in terms of credit or reputation, but it could still get you into a safe spot. Return the vehicle to the dealership. This could be an expensive option – you’re still under contract for all remaining payments and early return penalties. That being said, dealerships often see keeping you as a customer as just as important as following the leasing contract. Depending on your relationship with the dealer and your being proactive, they may work with you to mitigate both parties’ impact. Talk to your dealership and see about working out terms… or maybe rolling your current lease into a new, less-expensive vehicle could be the right path.
Last Ditch
If you’ve just got to get that lease off the books right now, you may have to settle for methods that might leave a mark but will still get you out of your home.
Voluntary Repossession
This will get you out of a lease with no up-front cost… but it is repossession. It will critically impact your credit score. It will prevent you from getting another car on credit shortly. A default or repossession will sit on your credit report for seven years. It will hurt the credit card and mortgage opportunities you are looking for. One advantage is that this route saves the hassle of having the repo man show up and take the vehicle without warning.
Payment Default
And finally, if you want that visit from the repo man. Suppose you cease payment and go into default, except for a few calls. And visits. And, eventually, someone to show up to take your vehicle away. A great way to destroy credit, relationships, and financial stability. You might even get a lawsuit – although most dealers are more than happy to take the car away and cut ties. We really, really don’t recommend going this route.
Auto Transport for Leased Vehicles
If you’re ever wondering, “how do I get out of a lease that no longer works for me,” the best thing to do is to talk to your lessor from the get-go. It won’t be all that difficult if you’re both on board with the plan and intentions. There’s nothing wrong with getting out of a lease – only wrong ways to handle it.
One big reason folks break leases is often a major move. You don’t want to put that mileage on your vehicle. Still, you may really like it – and you may be able to work on the terms with your lessor. In that case, Number 1 Auto Transport is here to help you move your leased vehicle from point A to point B with peace of mind for you, the customer! Check with Number 1 Auto Transport today to see how we can help with your vehicle transport needs!
