Buy the Car Outright
During the lease, you have the option to buy the car outright. This early buyout option will allow you to pay a certain amount for the remainder of the lease agreement. The amount to be paid is determined by the value of the vehicle. With this option, you’ll be able to avoid the mileage and other fees associated with the end of the contract.
Once you’ve asked the company for a buyout figure, you can determine if it’s worth selling the vehicle based on the amount you can get from a buyer. The market value of the vehicle will often dictate whether it makes sense to buy the car and resell it. After it’s sold, you can buy a new car.
Transfer the Lease
If you can find someone else to take over the lease agreement and remaining payments, you’ll be able to get a different vehicle. While you might be able to find a friend, family member or acquaintance to take over the lease agreement, it’s often easier to go to a lease-trade website.
You’ll need to check the lease agreement with the company because some don’t allow a lease to be transferred to another at all. At some companies, you can’t transfer within the first year of the lease agreement.
Trade the Car
If you’d like to swap for a different car, you can check with the current lease company. There are rules that will depend on the company as well as the contract you signed, but many will allow you to swap for a vehicle at the dealership.
Those who aren’t in love with their current car or have a change in circumstance might opt to change vehicles in the middle of the lease agreement. The lease company will ask you to pay exit fees for leaving the contract early, but you can roll those over into the new monthly payments.
If you purchase a car from the same dealership, the company may buy you out of the lease agreement for the current vehicle. Final payments can be forgiven if you plan to stay with the same leasing company too. This will always depend on the contract you signed at the beginning of the car’s lease. Always understand what the contract states since you’re bound by the agreement.
You’re not likely to receive the current value of the car and there will be fees, but there are times when you need to remove yourself from a lease agreement to purchase a vehicle.
Many incentives are available for those who want to lease a vehicle and leave the contract early. If you really want to swap to a new car before the time has expired on your lease agreement, you can see what the lease company offers.
One of the most common incentives is the lease pull-ahead, which means that the company will forgive the last 3 payments on the car if you lease with them again. This is a good option if you are about to reach your mileage limit and want to avoid the penalties associated with that.
It can be complicated and expensive to get yourself released from a lease agreement, but there are circumstances that require it. You can swap your car for another with only a slight hassle. The lease agreement can be rewritten to cover the new vehicle, but you’ll be paying for the depreciation for the old vehicle with the new agreement. It’s important to understand what you’ll be sacrificing in terms of monthly payments for swapping a car.
If it’s not essential, it’s often better to wait until the end of the lease agreement and take advantage of the lease pull-ahead incentives that the dealership offers. Find out from your lease company what other incentives they might be able to give you for staying with their company.