Whether you choose to buy or lease a vehicle, it may be possible to do so in a state where you are not a legal resident. However, since a lease is a contract between yourself and the leasing company, its terms will dictate whether or not this will be possible in any given case. Let’s take a look at the factors that go into whether or not you can lease from an out-of-state dealer.
Most Leasing Companies Allow Out-of-State Leases
As a general rule, you can lease a vehicle from any state that you want regardless of where you live. Where you may run into an issue is if you choose to lease from a dealership in another country. For instance, you may not be allowed to drive from Buffalo to Toronto if that is where the best lease deal is. The best piece of advice for anyone looking to lease a vehicle outside of their home state is to read the lease terms prior to signing them.
What Happens If I Move?
If you choose to move, you should contact your leasing company to determine how it may impact your lease. In most cases, you will be able to keep the car as long as you otherwise stick to its terms. Therefore, you would simply be required to stay under your annual mile limit as well as keep the car in good condition. If you are asked to return the car, ask if you can get a portion of your down payment back from the leasing company assuming that you made one.
What Happens If I Break the Lease?
When an individual breaks a contract, he or she may be liable for damages. The lease itself should state what type of damages that you may be required to pay. It should also state how any disputes are to be settled between yourself and the leasing company. Typically, disputes will be heard by a panel of arbiters, but your lease may give you the opportunity to pursue a case in court if necessary.
How Would This Differ From Buying a Car In Another State?
When you buy a car, you promise to repay a loan to a bank that can receive payments regardless of where you live. This means that you own the vehicle, and no one can tell you what to do with it or ask for it back as long as the loan is paid on time. With a lease, you are simply renting the car for a period of time. As the leasing company still owns the vehicle, it is within its rights to determine who is eligible for the lease.
What Should I Know Before Moving My Vehicle?
If you are allowed to bring your leased vehicle to another state, there may be tax issues to consider. Make sure that you register the car in your state and pay any sales or registration taxes that apply. Most states will suspend your license or refuse to give you valid license plates until you pay registration fees.
Leasing a car can be the best way to get what you want at a price that you can afford. However, it is important that you read any lease agreement thoroughly before you sign it. Otherwise, you could be liable for damages as well as potentially have the car repossessed by the leasing company.