Get Started
Talk to our team to start saving 800.260.5355
Sometimes, needs change. Maybe your leased car no longer fits your budget, or the car itself is no longer suitable for your lifestyle.
If you feel trapped, wondering “How do you get out of a car lease?” then it will help to know your options. You could terminate the contract early, transfer the lease to someone else or trade in the lease for a different vehicle.
Regardless of which path you choose, there will probably be a hefty fee involved. Learn how to break a car lease, what it might cost and how to make the right choice for your situation.
Yes, you can return a car lease early. It might not be simple, convenient or cheap, but breaking your lease is usually possible.
Returning your car before the lease is up will typically result in an early termination fee, and some leasing companies might require you to finish making the rest of your lease payments, too.
But if your circumstances have changed — perhaps because you’re moving overseas, or you’re no longer able to drive — then exiting your lease might be necessary. It’s up to you to decide whether the cost is worth it.
Here are the four most common methods for breaking a car lease early:
Returning your car before the lease expires is called early lease termination. The leasing company will typically charge you a significant fee for returning the vehicle early, and it might require you to pay the balance due — meaning you must make all the remaining lease payments. You might owe a disposition fee or mileage overage, too. And some companies will only let you break a lease if you buy the car outright.
Check your lease contract to verify the specific terms, conditions and fees of your agreement.
Another option for getting out of your car lease is to transfer it to another person.
A lease transfer, also called a sublease or lease swap, lets a third party take over your lease for you. That person will be the one to make the lease payments and finish out the lease.
There is usually a fee to transfer a lease to someone else, and not all leasing companies or states allow it. Sometimes, even if someone else assumes the lease, you remain ultimately responsible for making the payments.
Online lease-swapping platforms allow you to list your vehicle and terms and then connect with buyers who are interested in short-term leases.
At the end of a lease, you usually have the option to purchase the car. Rather than make a balloon payment at the end of your lease to buy your car, you can explore lease buyout loans to help you cover the cost.
Your lease should spell out the cost of the purchase option, which is usually the residual value of the vehicle, plus taxes and fees. Once you pay to buy the car and settle the fees and taxes, the vehicle is yours; you can keep it and drive it around, or you can sell it. If the car has held its value well, you might get more for it by selling than you paid to buy out the lease.
If you want to know how to get out of a car lease early because you want to drive something else, then consider trading in your lease. Some dealerships will let you trade in your leased car for a new car. They’ll pay off your old lease and, if there’s any money left, apply the difference to your new car.
The benefit of this method is that you get out of the old lease and into a new car that suits you better. The drawback is that you’ll still have to pay any end-of-lease charges (such as the disposition fee) plus transfer fees for trading the lease to the dealer.
You can also check whether it’s possible to trade in your leased car and roll any remaining payments into a new auto loan. The downside of that option is that your new car payments will be more expensive, and you might end up paying more than the car is worth. Auto refinancing is one way to bring those expensive payments more in line with your budget.
Sometimes, a car you once could easily afford becomes too big a burden for your budget. For example, you might be struggling to afford your lease payments if:
If you can’t afford your lease anymore, contact your leasing company right away. Explain your situation and see what options are available. They may offer a new payment plan that lets you keep the lease but make more manageable payments. You might also have the right to make up missing payments before the company repossesses your car.
On the other hand, depending on the contract and the state you live in, the leasing company might be able to repossess your car after just one missing payment. In that situation, you’d lose your car, and you might have to pay a fee, too. Plus, repossession has a pretty serious effect on your credit history.
You can find out what laws apply by reviewing your contract carefully and reaching out to your state’s attorney general’s office.
Getting out of a car lease early can be complicated. Below are some of the most commonly asked questions about it.
Yes, it’s possible to get out of a car lease early. However, it’s almost always going to cost you. Your contract will specify the fees and charges for terminating the lease early.
It depends on how much time is left on your lease, the value of the car and the price of the early termination fee. Ending a lease early can cost hundreds or even thousands of dollars. The earlier you break the lease, the more expensive it will be.
If you stop making payments, that will break your lease, put you into default and hurt your credit. You can protect your credit score by following the leasing company's procedures for terminating a lease and paying the fees.
It really depends on the wording in your lease contract. The earlier you give up your car, the costlier it will likely be to get out of the lease.
It depends. If that dealership is willing to pay off your lease and take ownership of the car, perhaps to sell to another buyer, then yes. Check your lease agreement or call the leasing company to know for sure.
Explore how a car loan settlement can impact your finances and credit rating, providing insights into this crucial decision for borrowers.
