Can I End My Lease Early?CAR OWNER TIPS Oct 8th, 2019
What are my options for ending my lease early?
If you’re in the middle of a lease contract that you’re not completely satisfied with, you’ll be happy to hear that early termination is a viable option. Below are some options for ending your lease prematurely:
Transfer it to someone else
If you’re not happy with your current lease agreement, you can always try to find someone else who will be.
While there’s no guarantee that you’ll be able to find someone to transfer your lease to, there are a couple factors that could make your contract more attractive to a prospective buyer.
If you made a down payment when you originally signed the lease, you should have no issue finding someone to take it over due to the relatively low monthly payments. Also, if your lease is already a couple years old, many people will jump at the opportunity to take over a shorter lease.
There may be a relatively small fee involved to compensate the leasing company for some administrative work, but it could be well worth it if you’re not satisfied with your current contract.
Sell back to the dealership
If you don’t want to go through the hassle of finding someone else to takeover, you can always sell your car directly back to the dealership.
While this is the simplest and easiest option, you will also likely have to pay an early termination fee. If you’re someone who doesn’t mind paying a little extra for convenience, this could be an attractive alternative.
If you’re moving out of Ontario and need to get rid of your vehicle quickly, this is almost certainly the most viable option.
Pay off the vehicle and keep it
If you want to get out of your lease but still prefer to keep the vehicle, you can always ask the leasing company how much it would cost to pay out the remainder of the lease and still retain the car.
This option makes a lot of sense if the buyout amount is less than the resale value of the vehicle. In this scenario, you would actually profit by terminating the lease early. However, this situation is fairly uncommon, so it’s important you check beforehand to determine if it’s truly cost effective.
Change your lease for another
If you’re tired of your current vehicle and are looking for a new one, you could always ask the dealership if they’d be interested in you swapping leases. Depending on your situation, the dealership may even be able to waive certain early-termination penalties.
Check the math
Before making any final decision, it’s important to check the math beforehand to see what the different options will cost. Doing so won’t take a ton of time and it could potentially save you from paying a considerable amount for an inferior option.