How to end a car lease and avoid paying termination fees:
- May 5, 2022
- Posted by vseeley
- Comments Off on How to end a car lease and avoid paying termination fees:
Option 1: You can terminate your lease. However, this includes paying off the remaining payments on your lease and is not the best financial option.
Option 2: Trade your lease with someone. If a qualified applicant is willing to take over your lease then you can transfer your lease to them. However, if the person you transferred the lease to fails to make payments, you may be responsible for payments.
Option 3: Pay it off. This is the best financial option as long as it’s under the right circumstances.
If you’re a year or two into your lease, there is a chance that the amount you owe on the car is less than what the car is worth. For instance, the leasing company undervalued your car’s residual value (buyout amount) when you leased the car. This gives you equity, which means your car is worth more than the cost to pay it off.
This usually occurs if your current car is in excellent condition and has low miles.