Leasing a vehicle is a serious commitment. Before you lease a vehicle, take some time to assess your needs, your finances, and your long term goals. For many people, leasing a new vehicle makes perfect sense and provides them with reliable transportation in a vehicle they love.
Sometimes however, people discover that leasing is not for them for any number of reasons. So what do you do if you find yourself in a lease contract, but realize that you want out of it?
The good news is that you have several options to end your lease early. While ending your lease early may not make the most sense financially, we all end up in different life situations that call for big change, and it’s good to know your options. Here are a few ways that you can get out of your vehicle lease early.
If you want out of your lease, and you want to get rid of the car, perhaps one of the best ways out is to find someone who is willing to have the term of the lease signed over to them.
This situation has great potential to be a win-win for both parties, especially if the person taking on your lease was shopping for that particular model of car in the first place. A lease transfer is by far the most inexpensive way to get out of a lease. The only cost to you will be any administration fees to complete the lease transfer.
If you want to end your lease, but you still want to KEEP your vehicle, you have usually have the option for an early buyout. An early buyout is where you pay the dealership the entire balance of outstanding payments left on the lease, plus the residual value and any applicable taxes.
Once you complete the buyout you own the car as if you bought it. While this option is good if you want to keep your vehicle, there is a potential downside – most vehicles lose most of their value in the first few years, so this option can end up being very costly.
However there are rare cases where vehicles actually accumulate equity making the vehicle worth more than the buyout price, so there is a chance you can actually make the money you spent buying out the lease back by selling the car privately. Do not hesitate to contact us with any questions you have about the pros and cons of an early buyout.
Another option if you want to get out of your current lease and get rid of the vehicle is to change leases by ending your current lease early and leasing a new vehicle. If you go this route, you will still be responsible for paying off the outstanding balance on the first lease, plus residual costs and taxes.
However, this can be very risky because if the cost of the car is less than what is left on the lease, the difference will be added to the new lease, and you’ll be stuck paying the depreciation of both vehicles. Again, if you need any questions answered about what your options for changing a lease and if it is the right option for you, please don’t hesitate to ask us.
What Is Right For You?
The need to end your lease early can seem complicated, but with the right information and careful planning, you can choose the option that is best for you. And as a customer of Georgetown Toyota, you’ll have a team of finance experts standing by ready to answer any questions you may have, and assist you in any way possible to help you make the best decision concerning your automotive lease.