(Newswire.net — February 9, 2016) — You have just leased a beautiful, brand-new car. After months of using the vehicle, for some reason, whether it be an unexpected lifestyle change or just plain boredom with the vehicle, you may wish to end your lease before the end of the term. Now what? You need to consider all of your options before terminating your lease. With the appropriate preparation and timing, it is possible to terminate a lease early with very little penalties and associated costs.
Clean, Inspect, and Document your Vehicle
No matter what you decide to do with your vehicle, the first step is to get it cleaned. Your vehicle needs a full detail, including washing, waxing, and vacuuming. At the very least, have the exterior washed and the interior vacuumed. Check the tires, looking for signs of obvious wear and tear. Also check to ensure that the tires have plenty of tread remaining. You should compare the tread on your tires to the lease agreement’s minimal acceptable tread depths. If your tread is less than the minimal acceptable tread depths, purchase new or used tires at your local tire shop before attempting to return the vehicle to the dealership or before trying to sell it. Finally, once you clean the vehicle, photograph the interior, exterior, engine, tire tread, and odometer (for mileage).
Transfer your Lease
Online lease transfer works similar to selling your car online. Websites like Swapalease.com can help oversee your lease transfer. This is how it works. A lease holder who wants to terminate a lease enters his or her car information into the system, including the make, model, year, the number of months left on the lease, the monthly payments, and all the other information. Swapalease.com posts the listing on the website where interested consumers can view and potentially acquire the lease from the prior owner. Once a buyer decides he or she would like to acquire the lease, Swapalease works with the buyer, seller, and the leasing company in completing the transaction. If the buyer and seller are not in the same location, the company will also help ship the vehicle. It typically takes 30 to 45 days to locate a buyer and an additional two weeks to complete the transfer paperwork; therefore, from when the initial listing until the final paperwork has been executed, it takes anywhere from 30 to 60 days.
The standard charge for online lease transfers vary, but the charge is typically less than what is listed on the lease. A online lease transferring company typically charges an initial fee, a commission fee, and a transfer fee. The cost can range from $150.00 to $300.00 depending on the company.
If you want to sell your lease quickly, you should consider offering a cash incentive to the buyer to get the ball rolling. Although it might be several hundred dollars, it would be less than the fees and penalties incurred by simply returning the car to the dealership.
Lease transfer is your best option. There is a large pool of potential buyers looking for short-term leases without going through car dealers and incurring a host of additional costs. However, before you can begin this process, you have to verify that your lease company allows lease transfers. It is impermissible to allow someone to take over your lease without informing the leasing company. The new lessee must get approved by the leasing company and sign the appropriate papers. Additionally, every leasing company treats transfers differently. Some leasing companies will not allow transfers of leases if there is a certain amount of payments remaining. Furthermore, some leasing companies charge the buyer a credit application fee and transfer fee.
You might also be able to find a friend, family member, or co-worker to assume the balance of the lease payments. There are several companies that provide this service to customers. They will probably perform a credit check and request a transfer fee. Although you would no longer be responsible for monthly payments, many leasing companies will still hold you liable in the event of a default payment.
Buy the Vehicle from the Leasing Company and then Sell or Trade your Vehicle
All leases contain a buyout or payoff provision in the contract. The contract specifically declares the payment amount if you wish to purchase the vehicle outright during any time period within the lease duration. Payoff of the vehicle might be at or above market price, depending on the resale value. This means that you could potentially pay more for the vehicle than it is actually worth; you will personally incur the difference in the price. Additionally, the payoff amount will include the early termination fee which is also listed in your lease agreement.
Once you receive the payoff amount, you can either sell the vehicle to a third party or another dealership. Again, you might sell it for less than you paid for it given the market value of the car. However, even if you do incur a loss, it still might be less expensive than continuing with the monthly payments. Another option could be to sell your vehicle if it has excess damage and contains more than the allocated lease mileage.
Trade your Vehicle into the Dealership for another Vehicle
You might be able to lease another vehicle from the same dealership. You will have to pay all of the associated penalties, however, these penalties and fees from your original lease combines with the new vehicle contract, making the payments higher. This allows you to absorb the penalties and fees in the old lease and spread out the payments over a longer period of time.
Return the Vehicle to the Dealership and Pay the Penalties
This is the final, traditional, and most expensive option. When you return your vehicle to the dealership, you will have to pay all the costs, fees, and penalties associated with the termination. In some cases, you might still be required to make all outstanding payments as well. This should be a last resort option and you should thoroughly review your lease agreement before making any decisions.
CONTACT INFORMATION:
430 Industrial Ave Phone: (201) 365.6027
Fax: (201) 367.3442
E-mail: Sales@AMGLease.com