Leasing a car is an exciting event for many individuals in life. After all, who doesn't want to drive a brand new vehicle for a low monthly fee that can be quickly traded — within two to three years— before even a car falls out of its lease and warranty?
Yeah, you signed up for a car lease, hoping it would be all right, but you're stuck with it. And now you feel you need to get rid of this as a mistake soon as you can because you can't keep up with monthly payments and do not want to hurt your credit score by having it taken away by the bank.
Okay, there's a lot of people in the same boat. That's why we've decided to help anyone out there dealing with their car lease. This blog will help you think about the best five ways to get rid of your current car loan. Yeah, let's get in there.
Transfer your lease
The number one thing you can do to end your car lease sooner is to transfer it to another buyer.
Therefore, the issue is who would like to bear the burden of your vehicle's rent after you already used the car for some time. Okay, here's the thing, this product is provided by different third-party firms that work to help switch over your lease to another buyer before your lease is over.
The most famous are Swap-A-Lease and Lease Trader.
They are not leaving the responsibility on themselves, but they're introducing you to people who want the remainder of the lease of the car.
You will also have to pay a transfer fee that ranges from $50 to $5000 depending on the price of the car.
Buy and then sell the vehicle
Many people do not know that they have the option of buying a car from the leasing company at any stage in their lease if they still want the car and can make all the payments at once. This is called early buying and you're going to have to pay early termination fees somewhere from $200-$5000 plus some maintenance expenses that the dealer throws on. And, the first thing you've got to do is figure out the payout number. Go contact the leasing company directly for the number you are looking for. The next step is to find someone who's willing to buy your car. Remember that since you are buying a car from a leasing company and then selling it to a third party, and you may have to pay taxes. You can visit your state’s DMV website to find out more information regarding sales tax through a third party seller. Several states may have an exception to this law, but please be sure to check before purchasing.
You can either choose to sell the car to a private party collector or trade it in at a dealership when purchasing your next vehicle.
Return the vehicle to the leasing company
The next simple and straightforward step you can make to get out of the car lease is to terminate it before the contract ends, which will end up costing you.
You can directly return the vehicle to your dealer, but it will attract penalties for early termination of the lease contract. This, however, cannot be waived or ignored when terminating your lease.
This penalty is called a termination fee which is generally a percentage of the contract. You can compare the cost of this fee vs the cost of the rest of the months left on your agreement. It will help you to understand if paying this termination fee is worth it and whether you should go for it
Ask the leasing company to help
This is one of the interventions that you can take before you go to the steps described above, which are fatal for your lease. You can get in contact with your leasing company and let them know that you're in financial trouble and that you need more time to get back up and running.
This would be particularly appropriate if you're facing a prolonged financial crisis rather than a short pinch for money and don't want to terminate the lease contract right now.
You may be given fee protection for a few months or maybe temporarily suspended from your deal letting them reevaluate your agreement.
You can use the time gap to get back on your feet and then continue with your lease term without incurring any trouble or fines.
Default the payment
First of all, we need to remind you that this is the least and the last approved way to get out of your car contract. When you decide that the complexities of all the other options mentioned here are not worth your time, cash, and effort then you can simply stop paying for your monthly payments. This will end up hurting your overall credit score that will lower eligibility to get your next car.
Nevertheless, you should also be prepared to drop your credit score massively or even get sued by your automotive dealer.
On the other side, if you're not prepared for such a threat, reach out to your local Fresno dealership, Madera Auto Plaza, and let us help!
These were five ways to get out of the car lease contract sooner than you think. All the above strategies have their pros and cons, such as being too costly or too dangerous.
Buying and then selling off the car is the fastest and least risky way to lease a car and switch it over to another buyer.
You can either go for it as a start, or you can even ask the leasing company for assistance (if you want to retain the contract). If you need real help, come on down to Madera Auto Plaza to see from our inventory of used vehicles.