In almost every case, you can certainly turn in your leased vehicle early. Whether you buy or lease from the same dealership after is up to you. What you need to know before making this decision is your penalty for early lease termination.
Turning in Your Leased Car Early
When you choose to turn in a leased car early there may be a number of penalties you face. How many and how much you're charged varies by leasing company and state, so be sure to get these facts beforehand by checking your lease contract.
These penalties may include an early termination fee, having to pay the remainder of your lease payments upon vehicle turn-in, or having to pay the difference between what you owe on the lease and the value of the car if there's negative equity. It's also possible you have to pay a storage or transportation fee, to have the vehicle prepared for sale, or any applicable taxes that haven’t been paid.
Just because these penalties might be charged doesn't mean you should give up on turning in your leased car early, especially if you plan to purchase a new vehicle from the same dealer. In fact, some companies even offer incentives for early lease turn-in if you're planning to buy or lease again. Check with your dealership to see if there are offers available that you can take advantage of if it's your goal to terminate your lease early for another car.
Options for Early Lease Termination
Did you know that returning your vehicle to the dealer you leased from isn't the only option when ending your lease? The important thing to remember is that your lease must be completed, or the car must be purchased, if you're planning on taking other routes.
Let's look at some of the other options you have for ending a lease early:
- Trade in your leased vehicle: If your goal is to purchase a different car from the same dealership, you can always contact the dealer and see if there are any incentives available to roll your lease balance into the purchase of another vehicle.
- Transfer the car lease to someone else: You can find a buyer on your own, or use an online "lease swap" company to transfer the remainder of the lease to another person. Keep in mind this isn't allowed in all states, and the buyer you find has to qualify for the lease. So, make sure you check with your leasing company and local DMV or Secretary of State before you sign anything over to someone else.
- Buyout the lease vehicle: Even if you want to purchase another car, getting an early lease buyout may be worth your while if there's equity in the vehicle and you can afford it. You avoid excess wear and tear and mileage charges this way, and can do as you please with the car once it's yours.
- Sell the vehicle privately: If you can sell the car privately for enough to pay off the buyout amount, you can go for this as well. Keep in mind, though, that if the buyout amount is high, it can be more difficult to turn a profit, making this option less worthwhile.
Purchasing a Vehicle
Remember, you can typically purchase a vehicle from the same dealership you've leased from, so long as your lease was completed. Whether or not you terminate your lease early is up to you. If your credit situation has changed, and you're unable to maintain your lease or are having trouble finding financing with your old dealer, Auto Credit Express wants to help.
We work with a coast-to-coast network of special finance dealerships all across the US that have the lending resources available to help people with many different credit challenges. Let us help you find the dealer for your next car loan. It's easy to get the process started, simply fill out our no-obligation auto loan request form, and we'll get to work for you!