Terminating a Lease

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Is terminating a lease early costly?

Terminating a Lease

When you sign up for a lease on a car there is a certain amount of time in which you are expected to keep the car and make the payments. An early termination occurs when you need to turn the car back in for whatever reason: maybe you just don't like it, you can't afford the payments, or you're expecting a baby and need a bigger car. Turning in a leased car early is a break in the contract, and unless you figure out an alternative way to gracefully exit from the lease you may wind up paying thousands of dollars in early termination fees. Some dealerships will allow you to trade in the leased car for a different leased car with little penalties, but this is at the discretion of the dealership. You can also try to find a different buyer who will assume the lease for you; if you have a couple of years left on the lease this is a good option. If money is not necessarily an issue then you can always drop the car off at the dealership, pay the hefty fees associated with an early buyout, and then move on with your life.



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Jerry Mayo