Terminate, Transfer, or Buy: How to Trade in Your Leased Car Early

Leasing a car involves renting it from a dealership for a fixed number of miles and months. At the end of the lease period, you can either return the vehicle to the dealer or purchase it for a predetermined amount. This is a popular choice for someone who always wants to have the most up-to-date features and latest technology.

But, what if you decide you want to trade in your leased car early? Perhaps the vehicle no longer meets your needs, or you are having trouble making your monthly payments. Whatever the reason, you may be looking for ways to trade in your car before the end of the lease period.

Continue reading to learn how to trade in your leased car early. 

Here’s How to Trade in Your Leased Car Early

If you’re looking for ways to end your lease early, below are some options to consider. 

1. Terminate Your Lease Early

One option to get out of your lease early is to terminate it altogether. By doing this, you will no longer be responsible for making the remaining payments on your current vehicle. However, you will have to turn in the car and pay any remaining costs or fees associated with early termination.

Most dealerships or leasing companies will charge an early termination fee if you decide to go this route. This fee is typically the difference between the remaining balance owed and the current value of your vehicle. Depending on your lease terms, you may also be responsible for additional vehicle disposal fees, transfer fees, and taxes — ultimately resulting in you paying thousands of dollars to terminate it early.

2. Transfer Your Lease to Someone Else

Another option to consider is a lease swap, which involves transferring a lease from one person to another. Rather than simply ending a lease early and being accountable for the hefty termination fees, you will be able to transfer ownership to someone else. Once the swap is complete, the new lessee will be fully responsible for the remaining terms. This is especially helpful if you want to end your lease because your financial circumstances have changed, and  you’re struggling with the monthly payments. If you cannot find someone willing to take it over, there are services that can help connect you with someone, such as Swap A Lease or Lease Trader. 

3. Purchase the Leased Vehicle

Most lease contracts allow you to purchase the vehicle at any time for a predetermined amount. Therefore, if you’re interested in getting out of your lease early, this is a viable option to consider. Should you decide to own a car rather than lease one, purchasing the leased vehicle will give you complete ownership of the asset.

However, many people choose to buy the leased vehicle and turn around and sell it themselves. In order to determine how much the car is worth, you’ll need to look up the car’s residual value. Typically provided in your lease agreement, the residual value reveals how much the vehicle will cost if you decide to buy it before the end of your lease.

Check Out: Buying vs. Leasing a Car: Which is Right for You?

Should I Get Out of My Lease Early?

Now that you know how to trade in your leased car early, which option should you choose? And, most importantly, should you even get out of your lease early? Before making a decision, it is important to review your lease contract to see what your current monthly payment is, how many months are remaining in the lease, and the vehicle’s residual value.

If the car no longer fits your needs or your financial situation has changed, then it may be a smart idea to get out of your lease early. However, if the vehicle still meets your needs and fits within your budget, it might be best to keep the current lease until it expires.

Regardless of whether you decide to terminate or keep your lease, we’re here to help you every step of the way. Click the button below to get in touch with us. We’d be happy to answer any questions you may have about the leasing or car buying process.