Turn in car lease
don't wait to turn in your lease, get out now
Posted 9/09/2012
To turn in a car lease most often refers to cancelling one’s lease contract early and following the rules spelled out in the lease agreement. In most cases turning in a lease early or prior to the end of term means that the lessee will be held responsible for potentially significant costs including:
1. Outstanding lease payments
2. Early lease termination fees and/or penalties
3. Mileage overage and/or wear and tear issues if applicable
Obviously turning in a lease early can be expensive due to outstanding payments and the likelihood of the fees and potential penalties associated with doing so. It should also be taken into consideration that it is going to cost more early on in the lease term due to fewer payments already being made.
Moreover, the situation and the timing that a lessee decides to turn in their car lease may also determine their best course of action. In fact, it may make sense to also consider exiting a lease through an outright sale. In this scenario the lessee would need to obtain the present payoff on their lease often with the help of an automotive dealership. Regardless, the lease payoff will ultimately come from the lessor who holds the lease and subsequently the company where the lessee sends their monthly payments.
Similar to turning in a lease early directly with the lessor selling a lease may prove to be an expensive route for the lessee, too. This is the result of many of the same factors being associated when doing so. Also the market value of the car or truck must be considered which may or may not help depending on not only the current economic conditions, but also the actual market for the vehicle in question. If a particular car or truck is in short supply and high demand this may mean that the lessee is able to turn in the lease relatively pain free from an economic standpoint. However, a buyer would still need to be found and relatively few vehicles are in high demand.
To effectively turn in a lease early the optimal way is to take advantage of a lease transfer which is permitted by most major leasing companies. In this scenario a lessee simply transfers the lease to another credit worthy lessee who takes over the lease from where the first lessee leaves off. This also requires locating someone who wants to take over the lease which may seem like a tough proposition. However, many car and truck leasing consumers find taking over an in-process lease to be a compelling option for getting their next vehicle.
Consumers interested in leases commonly find the shorter terms aspect of taking over a lease to be attractive. This is often amplified as a result of many lease payments being subsidized through down payments and/or trade-ins when the vehicle was originally leased. Swapalease.com is an online service where sellers and buyers meet to transfer leases. Swapalease.com is an outstanding resource to gain more information about transferring your lease and the actual policies of one’s lessor when doing so, as well.
