When leasing a car, San Diego Countydrivers sign a contract to make payments and keep the car for the full term of the lease. If you’re facing lifestyle changes, an unexpected financial hardship, or you just don’t want the car anymore, you do have options to get out of your car lease early. Terminating a lease before it’s up can have stiff penalties, but not always. There are several ways to end a lease early. Here’s how each option can work.
Return the Car to the Dealership
While this is the traditional way to end a lease early, it’s also the most expensive. You will almost always face penalties with this option. Some leases even require paying all outstanding payments on top of additional fees and penalties. When the car is turned in, the leasing company will sell it at a wholesale auction. Your payout will be reduced by this realized value, which is the lowest possible value for the car. As a general rule, returning the car to the dealer should be your last resort.
Buy the Vehicle
For many lessees in San Diego County, buying a carthey’re leasing might be a good option. Every lease includes a buyout option with an amount due to the leasing company if you want to buy the car outright during your lease. The payoff amount will have the early termination fee included.
If the car has a good resale value but you don’t want to keep it, you can sell the car to a private party based on the payoff amount in your lease. You might take a loss on the car, but it might be more affordable than continuing the payments or paying hefty fines to return the car. Buying the car is likely the best option if you know you will face penalties for excessive mileage and/or wear and tear. There is a greater chance of breaking even if you put down a large down payment when you leased your car.
Have Someone Take Over the Lease
There are many reasons someone might be willing to assume your lease. For example, the person may want to lease a car for a short time or avoid a high down payment. If you know someone who is willing to assume the balance, he or she can take over your lease and continue the rest of the payments. Many companies offer this service to people who want to sell their leases, although there are usually strict requirements.
If you find someone to take over the lease, he or she will likely need sufficient credit, and there may be fees. You may still be responsible if the new lessee defaults on the lease, even though you will not be responsible for the payments. You will need to check with your San Diego County car leasingcompany. Not all leases require the original leaseholder to retain some liability after the lease is transferred.
To learn more about car leasing, or to find the luxury vehicle you’re looking for, get in touch with Below Invoice today. We’re here to help you with every step of the way in the leasing process. Call 949-630-0303 to schedule an appointment.