dBC-Channel.com

Auto Lease Takeover – How To Break Your Lease Early

Have you lost your job due to corporate down sizing or company bankruptcy? Unexpected financial changes may result in the need to break a vehicle lease early. If you’re in this situation there are alternatives for you. Some options are more costly then others. Be sure you do a little research before choosing which option is best for you.

1. Find someone to takeover your vehicle lease.

Check your lease papers or call your lease company to see if they permit takeovers . You will need to find a new lessee that has good credit. Visit auto lease buyout for information on where to find thousands of pre-qualified people who are looking to assume an auto lease.

You will be required to pay a transfer fee in the range of $300. Check the mileage on the vehicle to ensure it is within the mileage limit outlined in the lease agreement. If you are over the mileage allotted in the lease agreement you will need to pay the excess mileage fees to the lease company before the vehicle ownership can be transferred . Mileage fees typically range from 10 to 25 cents per mile over the maximum amount.

You will also want to ensure the vehicle is in good condition. The potential new leasee may decide not to assume the lease on the vehicle if the vehicle has stone chips in the windshield or body of the vehicle.

2. Sell the vehicle yourself.

Call your lease company to get the buyout total for the vehicle. Check online at Edmunds.com to get the TMV (True Market Value) of the vehicle . If the TNV is close to the buyout price you could try to sell the vehicle on your own and payoff the bank. You should be able to sell the vehicle for a price that will cost you very little out of pocket as long as the vehicle is in good condition. Check to see if the bank or dealer will assist you with the vehicle title transfer in order to avoid paying sales tax if you buy the vehicle yourself and resell it.

3. Turn in the keys and walk away from the lease.

This maybe a short term answer to financial stress but could come back to haunt you in the future when your credit rating is ruined and you are not able to make credit based purchases.

4. Release a new vehicle

Some lease companies may give you the choice to trade in your lease early and lease a new vehicle. Beware in most cases you will not be off the hook for the initial lease amount. The remainder of the lease cost will be added to the new lease and will increase the cost of your monthly lease payments on the new lease.

For more information on how to get out of your auto lease early visit get out of auto lease.