How to Break a Car Lease

Watch more How to Buy a Car videos: howcast.com/videos/316387-How-to-Break-a-Car-Le…

Get out of your lease without getting socked with hefty termination fees and penalties.

Step 1: Visit lease trading web sites
Visit lease trading web sites that will post an ad for your car and facilitate transactions at a fee that’s less than termination penalties.

Tip
Some financial service companies won’t allow lease trading. Read your lease contract for such clauses.

Step 2: Negotiate with the lessor
Negotiate with the finance company for an early termination settlement without penalties.

Step 3: Negotiate with your dealership
Negotiate with your dealer for early termination in exchange for buying or leasing another vehicle from the same dealer.

Tip
If you opt for a lease rollover, you may still be liable for old lease payments plus your new lease payments.

Step 4: Check state law for car lease lemon laws
Check state law for car lease lemon laws. If you can prove with credible documentation you leased a lemon, you may be able to get out of your lease early without penalties and with reimbursement.

Step 5: Buy the car before the end of the lease
Buy the car before the end of the lease and then sell it. Find your car's market value on the internet.

Step 6: Request a voluntary repossession from the lessor
Request that the lessor repossess your vehicle. While voluntary repossession can save you money in early termination fees and penalties, it will negatively affect your credit.

Did You Know?
It’s harder to get credit approval to lease a vehicle than to buy a vehicle.