How to Get Out of a Car Lease Without Penalty
Table of Contents
Key Takeaways
- Breaking a lease will typically result in fees related to the depreciation of the vehicle
- You can consider transferring your lease to another person or company
- Your dealership may offer to take the lease back in some instances
- You could also consider buying out the vehicle to own it
How to Get Out of a Car Lease Without Penalty
If you are currently leasing a vehicle but are unhappy with it for any reason, you might be wondering if it is possible to get out of your lease without racking up fees or a penalty. Though it is true that early termination fees and costs related to the depreciation of your vehicle are typical, there are a few ways you can end a lease without penalty. However, knowing which option makes sense for you can sometimes feel like a tough call.
At Team Chrysler, we are the Ram, Chrysler, Dodge, and Jeep dealership Mississauga residents turn to when looking for the best selection of Ram, Jeep, Chrysler and Dodge vehicles for lease. In this post, we outline how to get out of a car lease without penalty and drive the vehicle you really want.
When looking to end a truck leasing agreement early, it is typical that you will have to pay an early termination fee of a few hundred dollars or more as well as administrative fees. You may also be required to cover depreciation costs that have occurred since you took on the lease. To get out of a lease without penalty, your main options are to buy out the lease to own the vehicle or transfer the lease to another person. Companies and individuals may be able to take over your lease if the deal is suitable for them.
Replace with Pros/Cons Title
| Pros | Cons |
|---|---|
| If your lease is too costly, ending a lease can eliminate financial stress | Finding a company or individual to take over your lease can be time-consuming and stressful |
| Ending your lease by buying out the vehicle can lower your monthly payments while avoiding penalties | Fees are typical in any sort of transfer of lease or ending of a lease agreement. You may not be able to avoid them entirely |
Frequently Asked Questions
What Happens at the End of a Lease?
If you opt to continue your lease rather than end it early, you’ll have a few options. Whether you choose to return the lease or buy it out, your original lease term will end. Our post, What Happens After a Lease Is Up on a Car, provides the information you need to make an informed decision regarding what to do at the end of a lease.
Is it Better to Lease or Finance a Car?
Once you have ended your lease, you might be wondering what to do next. If you are still unsure about the pros and cons of leasing vs financing, we can help. See our post, Is It Better to Lease or Finance a Car? How to Know Which Option is Right for You, for more information on the pros and cons of each financing solution.
Conclusion
When it comes to ending a lease early or when the term is up, fees are to be expected. If you are looking to avoid penalties for ending your lease early, having someone take over the lease could be a good option. However, it may also be a good idea to see what the cost of buying out your vehicle is before making any decisions.
Hadeel Hijazieh – VP Digital Marketing at Ontario Chrysler Group
Hadeel has over 15 years experience in Automotive Digital Marketing with a focus on Brand dominance. She is a member of the dealer council at various leading marketplaces in Canada. Outside of work, Hadeel can be found splashing acrylic paint over canvas in her home studio.
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