Ways to Get Rid of a Leased Vehicle

There are many ways to get rid of a leased vehicle. If you need to terminate a lease early, you should understand the available options to get rid of the lease and choose the method that works best for your specific situation.

Negotiate

If you want the car, but simply cannot afford the lease payments, call and see if the leaseholder will negotiate with you. With many people falling behind on payments, lease companies may be willing to cut a deal to keep you in the car. If you keep the car, the leaseholder has less work (and expenses) to deal with, so they may be willing to negotiate. For example, the leaseholder may voluntarily reduce the lease payment for a specific period of time.

Give it Back

You can contact the lease company and make arrangements to return the leased vehicle. However, there are serious drawbacks to this method. The lease company will pursue you for terminating the vehicle early pursuant to the terms of the lease agreement. Also, the lease company will report the return to the credit bureaus who will list the cancelled lease as a voluntary repossession which will damage your credit rating. Though taking back the car is the simplest way to get rid of an auto lease, it should be avoided whenever possible.

Sell the Vehicle

Though it is unlikely you can sell the car for a profit, you may be able to get rid of your leased vehicle by selling it. Contact the leaseholder to determine the cost to purchase the car. Then determine how much the car is worth. Before attempting to sell the car, you should determine how you can come up with the difference if you sell the car. For example, if the leaseholder wants $15,000 for the car and the car is only worth $10,000, you will need to pay $5,000 out of pocket to get the title if the new buyer pays you $10,000.

Trade the Lease

There are many companies that will assist you in finding someone to take over your lease. Before starting this process, determine if your leaseholder will allow the lease to transfer to a new person and what fees the leaseholder may charge. If the leaseholder allows it and the fees are reasonable, this may be the best way to get rid of the lease.

Trade the Car

Though you will end up with a new lease, you may also have the option to trade the leased vehicle in for another leased vehicle. By trading for a less expensive car you may be able to significantly reduce your lease payments, though you may extend the amount of time remaining on your lease.