A car lease can be the right option for some people, but if you find a vehicle that you want even more than your current leased one, or if you need to get out of your lease for some other reason, you might be concerned that the contract that you signed for the lease is iron-clad. Thankfully, there are a few ways that you might be able to get out of your current lease so that you can position yourself better for your vehicle or so that you can get rid of a vehicle that you found that you didn’t like.
There’s lots of information that you should consider when you’re deciding whether or not you would benefit, including the interest rates on loans. According to Lantern by SoFi, “the average interest rate on a car loan is generally higher for used vehicles than new vehicles.” These are some other factors that you should consider and some of the best strategies you can employ.
Transfer Your Lease to Someone Else
One of the best ways of avoiding too many extra penalties is to see if you can transfer your lease to someone else. Some car dealerships will be more open to this option than simply letting you out of your lease because you’re at least taking the burden of finding another lessee off of their plates. Even services online can help connect you with someone else who might like to take over your lease, including leasetrader.com. While you might still have to pay some fees to transfer your lease, it’s definitely worth checking to see if it’s less expensive than other options.
Early Lease Buyout
Usually, when you get into a car lease, you wait until the end of the lease period to buy the vehicle, but seeing if you can pay the remainder of the vehicle’s value early might put you in the best possible financial situation. You can then sell the vehicle and get your money back. You’ll still have to pay buyout fees, but one of the times that this might work is when the market value of your house is higher than what the leader anticipated that it would be at that particular time. This way, you’ll get to charge more for the vehicle when you sell.
While it’s often not the first choice because you can lose a lot of money this way, it is an option to find out if you can terminate your lease. It might be expensive, but one advantage of this choice is that it can be simpler than other options. For instance, not only do most people have to pay a termination fee, but you might also have to pay taxes. These fees can add up, especially if you’ve only been in your lease for a short time. You should call your leaser ahead of time to learn more about what kinds of fees and the amounts you can expect.
There are many factors that you should take into account when determining whether or not finding a way to end your lease early is the best choice. For instance, if you choose to leave your lease because you no longer need a vehicle, it might be a great choice, but make sure that you know that you’re making the best decision for your needs. You might also want to look at the average car loan interest rate when you’re trying to determine whether or not there’s another car on the market that might be a better financial option for you.