Exit A Lease Now And Avoid Penalties




    To exit a lease is a relatively new idea that is gaining ground. Although many people still don't know that you can conduct business this way, more and more car buyers are becoming aware that this thing exists. Leasing is often advertised as an affordable way to get into a nicer car than you might otherwise be able to afford, it helps to know a way out. Exit car lease and to realize that it's a win/win situation for consumers and automakers alike. Initially, automakers' finance companies were resistant to the idea of their customers' leases changing hands but now, they've come aboard the bandwagon.



    Some 80 percent of leases can be transferred completely with no strings attached. But approximately 10 percent of leasing companies require the original leaseholder to retain some liability for the vehicle even after it is transferred. Nissan/Infiniti and Honda/Acura fall under this category. Whether you can even break a lease financed by Honda Financial Services depends on where you live, so check with the company before listing your car or attempting to assume a Honda/Acura lease swap .



    Another 10 percent of leasing companies don't permit leaseholders to exit car lease at all: usually bank-based companies such as Chase Auto Finance and Huntington Bank Leasing, or smaller credit unions. This is an important factor to remember if you decide to lease a new automobile in the future.



    Letting folks do lease transfer makes particularly good sense for Mercedes Benz and BMW ; in 2007, leasing made up a whopping 32 and 60 percent of their respective sales.





    Why Exit A Lease is a Good Idea






     



    With your chance of lease assumption possible in every 9 of 10 leases, it's great news for consumers and a big boost for automakers. If you want to get out of a lease you need to be aware of a few things:



    Whether the person who wants to do a lease take over have good credit, if your current lease company allow the transfer and if you will be responsible for anything after the transfer, 10 percent of leasing companies require the original leaseholder to retain some liability for the vehicle even after it is transferred like Nissan /Infiniti and Honda /Acura.


    Next Tip: Lease Take Over Is A Fine Way To Lease A Car




    Just keep in mind that to exit car lease is still hard to do. Look at your paperwork to find out about any the fees and penalties you agreed to pay if you turn the car in early.  Leasing a car is a commitment. Leasing companies will not easily get you off scot-free. After all, they're there to make money off you.


    Be reminded that leasing companies have analysts figure out how much the car is likely to be worth at the end of the lease term and how much they’ll be able to sell it for (to you or to someone else). You’re essentially paying to drive the car as it depreciates, and if you could exit the lease whenever you wanted without penalty, the formula no longer works.


    One notable exception is if you are in the military, have an auto lease, and have been ordered to move overseas or deploy. Under certain circumstances, the Servicemembers Civil Relief Act (SCRA) allows active duty service members to terminate an auto lease without having to pay early termination charges or a penalty.


    In order to exit a lease under this law, you must have entered into the auto lease:
    Prior to active duty, and then been called onto active duty for 180 days or longer; or
    During active duty, and received orders for a Permanent Change of Station:  from a location inside the continental United States (CONUS) to a location outside the continental United States (OCONUS), or from a location in a state OCONUS to any location outside that state, or be deployed with a military unit or in support of a military operation for 180 days or longer.


    In a lot of cases, especially if you’re near the end of the lease term, it’ll probably be cheaper to ride it out than to pay to exit a lease. However, if you simply can’t keep your leased car until the term is up, you can do one of three things:



    1. Have somebody take over your lease. Go to this site's page about that: taking over a lease.

    2. Trade in your leased car, hoping that it already has equity and buy a new car if you are able to do it.

    3. Go to a dealership and try to sell it there, instead of to a private buyer, since you won’t be able to hand over the title until the outstanding lease payments and any applicable fees are satisfied.

    It's good to know that you can exit a lease, hoping that other options are available to you.







    More about leasing


    Leasing a Car - What You Need To Know

    Advantages of Leasing.
    Disadvantages of Leasing.
    Lease vs Buy: Which is the Better Decision?
    What To Do To Get The Best Lease Deals
    You Can Exit A Lease Through Lease Assumption
    Lease Take Over Is A Fine Way To Lease A Car



    HOME