There are many reasons for someone to want a way out of a car lease…moving out of the country, financial problems or even illness. For whatever the reason may be, there could be some financial repercussions behind breaking a car lease. It all depends on the contract terms and how you go about trying to terminate the lease early. Buyers, or lessors often believe that leasing a car is the same as renting a car, but they are two totally different situations.
Renting a vehicle carries no financial obligation other than returning the vehicle at the time and date that was agreed upon. The only financial obligation is the rental fee which is a one-time payment. Renting is only for a short time period.
Leasing carries a specific term., usually 2-5 years. When you lease a vehicle, there is a legal and binding contract that stipulates how long payments are to be made and how much those payments are for the life of the contract. There are usually penalties associated with getting out of a car lease early that are in the fine print. Leasing companies will require that the remaining payments are made or that the vehicle is purchased for the pay off price. Obviously neither of these options are the best for the buyer since they are no longer going to use the vehicle.
There could be a couple of options for you that are relatively inexpensive, but you must check our contract. First option is called a lease transfer. If this option is not prohibited in your contract, there are companies that can assist you with finding someone to take over your lease. These companies charge a fee, but they will handle the entire transfer process for you.
The other option that people are not aware of is selling the vehicle. Yes, you can sell a leased vehicle. There are companies that specialize in purchasing vehicles that are under lease contract terms.. These companies are considered as dealerships as they are licensed to buy and sell vehicles. This option will satisfy the lease contract and normally the buyer can walk away with no money out of pocket.