Information about early lease termination, lease assumption and leasing

Lease Termination

Lease termination allows a lessee to “walk away” from their lease commitment before the official lease-end date.  Myriad reasons exist for why someone would want or need to break a vehicle lease commitment.  Examples include addition to the family, change in lifestyle, change in career, loss of job, etc… However, there are only 4 viable options for early lease termination.

Lease Termination Option #1

It is possible to simply return the vehicle to the dealership before the lease end-date. However, the lessor will hold the lessee financially responsible for any negative equity, or any remaining payment, for the vehicle. Thus the lessee is still fully responsible to make the remaining payments, along with any financial penalties associated with the early termination of the lease.  This option can be extremely expensive.  

Lease Termination Option #2

The lessee can return the vehicle early and simply roll the remaining negative equity into his or her payments on a new vehicle.  This allows the lessee to exit the old lease without any financial penalties, but payments for the next vehicle will be extremely expensive as they now include negative equity for two vehicles.

Lease Termination Option #3

The lessee and request a voluntary repossession of the vehicle.  This method of early lease termination does not directly cost the lessee any money. However, it is extremely damaging to the lessee’s credit, as it is a form of repossession.

Lease Termination Option #4

The lessee can find someone to assume the lease, which would transfer the contract and liability to someone else.  Lease assumptions have become a very popular form of early lease termination, as they are inexpensive and simple.  Swapalease.com has helped thousands of people to transfer their vehicle leases.  This is the least expensive form of early lease termination.

Important Details

Up-front costs:  Lease contracts typically require up-front costs to be paid by the lessee. These costs might include a down payment, an acquisition fee, a refundable security deposit, one month’s payment, registration fees, and/or taxes.

Monthly payment:  The monthly payment is the payment made by the lessee each month to the lessor in exchange for use of the vehicle.  The payments are made up of the vehicle’s depreciation over the term of the lease, interest charged by the lessor, and any taxes that may apply.  The payment is negotiated up front.

Up-front costs:  Lease contracts typically require up-front costs to be paid by the lessee. These costs might include a down payment, an acquisition fee, a refundable security deposit, one month’s payment, registration fees, and/or taxes.

Monthly payment:  The monthly payment is the payment made by the lessee each month to the lessor in exchange for use of the vehicle.  The payments are made up of the vehicle’s depreciation over the term of the lease, interest charged by the lessor, and any taxes that may apply.  The payment is negotiated up front.

Early Lease Termination: A few methods of early lease termination exist.

• Return the vehicle early to the lessor: In this type of situation, the lessor will require you to pay any remaining payments along with early lease termination fees, which can cost thousands of dollars.
• Voluntary repossession: There are no up-front costs, but the lessee’s credit will be severely damaged, as this is considered a form of repossession
• Lease assumption: By finding someone to assume your lease payments, you can walk away from your lease without any significant up-front costs. Click here to find our more information.

Lease end date:  It is important to find out a drop-off point for your vehicle that is close to you and approved by the lessor. At the time of drop off, you will be required to pay any lease-end costs before the transaction is complete. These costs may include excess mileage fees, excess wear and tear fees, disposition fee, and any other lease-end costs.  It is recommended that you have the vehicle inspected and repaired, if necessary, prior to vehicle drop-off so that you can avoid pay premium prices at the dealer.

Mileage:  Most leases limit the number of miles that can be put on a Nissan lease vehicle each year. This range is typically between 10,000 to 15,000 miles per year.  Extra mileage allowance can be purchased at the beginning of the lease. Otherwise, each extra mile is billed to you at a premium price at lease end.  Lease-end excess mileage fees typically range from $.10 to $.20 per mile.

Excessive Wear: Lease contracts typically limit wear and tear to the vehicle over the term of the lease.  The lessee will be billed for any excess wear and tear at a premium price.

These fees, along with many other leasing terms, are defined in this section.  Please see the Frequently Asked Questions section of Swapalease.com for any other questions about leasing, leasing fees, and other leasing-related concerns.

See Also:
Lease Return
Lease Swap
Lease Takeover
Lease Termination
Lease Toyota
Lease Trade
Lease Trade-In
Lease Trade-In Deals
Lease Trader
Lease Trading
Lease Transfer
Lease Vehicle Transfer
Leased Auto Transfer
Leasetrader
Leasing
Leasing Agent
Leasing Car
Legal Ways Out of a Car Lease
Long Term Car Rental
Porsche Leasing