In life, your circumstances can suddenly change without any prior warning, which can often leave you looking for ways you can save money and budget your finances better. One of the ways you might want to do this is by breaking your car lease. How can you break a car lease without being subjected to early termination fees and penalties?
Many people lease a car because it gives them some flexibility, providing them with a short-term commitment that is must less expensive than trying to find the money to buy the car outright. However, if you find that you need to terminate your lease early, just returning the car before it expires is not a good option. You’ll still have the remaining payments to make and will be hit with those termination fees. Here are some other ways you can end your lease early.
Swap your lease
Each company will have a different finance company that has an alternative set of leasing rules, so you’ll need to understand these fully before making any changes to your current lease. Some might not allow transfers, whilst others may stipulate that you can transfer but only after the first 12 months of your lease are up. There will often be a transfer fee.
Ways you can transfer include finding a third-party who will handle the paperwork for you or finding a family member or friend who you could transfer the lease to.
Buy and sell the car
Another option available is the “early buyout” one, which gives you the chance to buy the car. They’ll work out the cost of the car based on how much you’ve got left to pay and the car’s value, which you can then compare to the industry average. If the amount is lower than the market price, you’ll be able to sell your car on for a profit; even if it isn’t, it could still be a cheaper way of terminating your lease.
Swap your car
Another option for those car leasing in Leicester with companies such as https://leasing.totalmotion.co.uk/, for example, is to transfer your current lease to another one.
You may have to pay early exit fees, but you could find a less expensive car that will reduce your monthly payments and save you money in the long run.