It’s in the best interests of an automobile dealership to make it as difficult as possible for you to break a car lease. Due to vehicle depreciation, the dealership is unlikely to recover the value of a new vehicle it opted to lease rather than sell if the individual leasing the vehicle breaks his lease early. Fortunately, if you need to escape your lease agreement, you may have options available for breaking your lease that you weren’t even aware of.

Look For Special Provisions in Your Contract

Some car dealerships incorporate lease break provisions into their contracts. These provisions will allow you to break your car lease by paying a fee to the dealership that originally leased you the vehicle. This fee may be equal to several lease payments, but allows you to walk away from your liability to the lender.

In some cases, if the break lease fee is substantially high, it may be in your best financial interest to simply “buy out” the lease by paying off the remainder of the payments in one lump sum. If you need out of the lease but cannot afford to pay the break lease fee or buy out the lease, consider obtaining a personal loan from your bank or from a family member. A personal loan can be used to break your car lease immediately, and you can then repay the loan over time.

Buy the Car

You can break your lease early by purchasing the car you’re currently leasing. Almost all dealerships provide a purchase option within lease contracts. The purchase option may or may not equal the actual value of the vehicle, however. The goal of the dealership is to recover its initial costs when the car was purchased and to make a profit on the deal. It can do that easily by leasing the car, but this can result in the purchase price being greater than the purchase price for the same vehicle elsewhere. Generally, the newer the vehicle is, the more inflated your purchase price will be.

Purchasing the car does, however, allow you to escape your lease. Depending on the amount of your down payment and the interest rate your finance company charges, your monthly car payments could be lower than your lease payments--allowing you to free up additional disposable income every month and escape a stifling and expensive vehicle lease at the same time.

Transfer Your Car Lease

You can break a car lease early by transferring the lease to another individual. You can locate interested consumers via flyers, newspaper ads or signing up for an online transfer facilitation service. These services charge a fee to list your car and your lease details online.

Not all car dealerships will allow you to transfer your vehicle lease. Audi and Nissan both prohibit lease transfer agreements. Many dealerships, however, not only agree to lease transfers but facilitate them. This is because the lender makes an additional profit by charging a lease transfer fee.

Keep in mind, however, that just because you’ve transferred your lease doesn’t mean you aren’t still legally liable for the payments. Talk to your lender to make sure that you can transfer your liability along with your car. Otherwise, the dealership can pursue you for missing lease payments at any time in the future should the person you transferred the lease to default on his obligations.

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