After leasing what you thought was your dream car and driving it for a year or two, you may realize you have fallen out of love with the vehicle.
Maybe you’re paying more than you really can afford, or perhaps the vehicle gets lousy gas mileage or is always in the shop getting repaired.
No matter the reason, you are ready to end your relationship — and hopefully your lease — with your car. The only problem with this scenario is that getting out of a car lease early typically leads to massive fees and penalties.
Fortunately, there are some ways to navigate the system without having to pay the piper. Check out these ideas:
Trade in the Lease
Lease trading is fairly simple in its premise. Lease holders, or sellers, list their car online and then a buyer who wants to take over the lease searches for the vehicles that meet their needs. LeaseTrader.com is a great example of this type of site.
Granted, you have to pay a fee for posting your car on the site and might have to pay again for transferring your lease paperwork. But oftentimes the person who buys your lease will pay most of these costs, and overall you will pay way less than the penalties at the dealership.
Roll Your Lease Into a Different Car
Believe it or not, the folks at the car dealership have worked with plenty of people who want to divorce their vehicle and get out of their lease.
Contact the dealership and ask if you can roll your lease into a new one for a vehicle you prefer. In some cases, dealerships offer incentive programs that let you get out of a lease early — as long as you sign onto another one.
Buy Your Car Outright
If your desire to get out of your lease is mainly financial and overall you like the vehicle, you might be able to get out of your lease early by purchasing it outright. Some leases allow the leasee to buy the car once the term is over. If that’s the case, call the dealership and see if you can purchase the vehicle now instead of later.
If you’re starting the leasing process now, you may want to find a dealership that has this option. Try searching for a vehicle in used-car markets that tend to be more affordable and offer more leasing options. For example, DriveTime in Tampa, Florida, is well-known for offering better deals on pre-owned cars and leases.
Also Read: Understanding Your Car Insurance Bill
Sell the Vehicle
If you’ve simply had enough of your current vehicle, check to see how much your lease payoff amount remains. Should the remaining balance be minimal and your vehicle has retained its value, you might be able to sell it and break even or perhaps make a little money in the process.
Consider a Cancel-Anytime Lease
When leasing a vehicle, many dealerships offer what is known as a cancel-anytime lease. This way you still sign a lease, but it can be cancelled or changed at any time.
As a bonus, cancel-anytime leases typically allow you more flexible mileage limits, as well as a limited warranty that covers the major systems in the car. This type of lease is usually only valid on used cars, but if you are fine with a pre-owned vehicle, it’s a great alternative to committing to a traditional lease.
