Can I End My Lease Early?
When you sign a lease, you drive a dealership's vehicle for a specific amount of time or mileage, normally between two to three years. So, what happens if you've signed a lease and are now wondering, "Can I end my lease early?" Our experts at Andy Mohr Toyota near Avon, Indianapolis, and Plainfield, IN, have broken down all the information you need to know as well as the options you might have to help you make an informed choice.
Lease contracts clearly state the terms of the agreement, including how long the contract lasts and the monthly payment cost. If you want to end your lease early because you’re moving to another city, your financial situation has changed, or you simply want to change your car, check your leasing contract. Every leasing company must outline in the contract the options you have if you want to end your lease, according to the Federal Consumer Leasing Act.
Some leasing companies may allow you to end your lease early without having to pay a termination fee, but you’ll still be responsible for the remaining payments.
If you find yourself in a situation where you want to terminate your car lease before its scheduled end date, you may have the following options. . .
Transfer Your Lease: Transferring your lease to someone else, according to the specific requirements for lease transfers in your lease contract, could be a viable solution. Some online platforms specialize in connecting leaseholders with potential buyers, making the process more accessible. The new lessee will undergo credit checks and may have to make a down payment similar to your initial lease agreement.
Buy Out Your Lease: Depending on your vehicle's value, you might choose to buy out your lease early and then sell the car to recover its cost. This involves paying off the remaining monthly payments and any early termination fees. If you choose this option, afterward you can resell the car to recover its costs. Keep in mind that before doing that, you should calculate the vehicle's market value to ensure you’re making a sensible choice.
Trade in Your Vehicle: If you’re ending your lease because you want to drive another car, see if the dealership offers the option to trade in your leased vehicle for a new lease. Nevertheless, keep in mind that this might involve a higher monthly payment on your next lease.
Evaluating these options carefully can help you make an informed decision that aligns with your financial situation and goals.
Have More Questions? Contact Us
In conclusion, you can end a lease early, but it usually comes with additional costs.
Our dedicated financing team at Andy Mohr Toyota, serving the communities of Avon, Indianapolis, and Plainfield, Indiana, is well-equipped to provide you with the guidance and information you need when you're pondering the question, "Can I end my lease deal early?"
We stand ready to assist you in making the best decision for your unique situation. We're here to help you explore your options, whether it's a lease transfer, buyout, or trade-in. Don't hesitate to reach out to us and take the first step toward finding the best solution for your early lease termination needs.