Due to circumstances that are out of your control, you recently decided that you must end your car lease early, and it is imperative that you find a way to get out of your contract. Unfortunately, it is going to cost you thousands of dollars to end your lease, and that’s money that you simply don’t have right now.
You may have heard from a friend or family member that it is possible to transfer a lease to another individual, but you have never attempted to do it yourself. While it is possible to transfer your lease, it isn’t as simple as handing over the paperwork and signing a few documents.
Getting Out of a Lease Isn’t Easy
No matter how you go about it, there isn’t a simple way to get out of a lease. There are some leasing companies that don’t allow lease transfers at all. So, the first thing that you need to do is look at your contract to find out if a lease transfer is possible.
There are some companies that will not allow you to transfer a lease during the first year or the last 12 months of your term. Therefore, if you have only had your lease for around 6 months, you should wait a little longer to transfer it. If you have less than 12 months to go on paying for your lease, it may be best to pay the lease off than attempt to transfer it.
You Could Still Be Liable for the Car Even After the Lease is Transferred
One of the primary things that you must keep in mind when it comes to transferring a lease is the fact that you may still be liable if the new owner skips a payment or damages the vehicle.
That means if the person you transfer the lease to doesn’t make a payment, or refuses to take care of the wear and tear charges, the lease company could request that you make the payments instead and hold you liable for the additional costs. You end up paying all the extra fees even though you haven’t had access to the car for months.
Also, if the new leasing customer doesn’t make their payments on time, it could end up affecting your credit score, since your name is still listed on the contract. You could end up in even more trouble if the new lease customer decides to let the car insurance lapse.
Choose a Reliable Person to Transfer Your Lease To
Since there are so many companies out there who choose to keep the original customer liable for the lease, It is best to transfer a lease to a person that you know and trust. This will make the entire process less risky and you won’t have to worry about being liable for any additional fees.
The transferring of a lease can take anywhere from a few weeks to a few months to complete. So, you should keep in mind that it isn’t a quick fix for your financial issues. And there will always be fees involved even if you go with a less hazardous lease transfer. While the cost of transferring, a lease is much less than paying out thousands in penalties, you still have to pay a hefty price. Lease transfer fees can range from as little as $35 up to as much as $500. The lease company will also need to do a credit application on the person you are transferring the lease to. Some will charge a fee for credit applications and the person who is transferring over th lease usually ends up paying for that cost as well.
If you are desperate to get out of your auto lease, you may want to try to make the deal even better for the person taking over the payments by providing them with a cash incentive of $500 to $1,000. While that is extra money that you will have to pay out, it could help you to get out of your lease contract faster.