There are a variety of ways one could easily cancel a lease quickly. It is a more significant idea for one to wait and return it patiently. The faster you cancel your lease, the more you might need to pay upfront to get out of the contract. Your leasing contract might also require that you have made many payments before you could go and opt-out to terminate your car lease earlier than planned.
Why Do People Consider Returning a Lease Early?
Some folks end up eyeing an early escape hatch from their car lease for a handful of practical reasons. For example, maybe you landed a new job in the city and public transportation now renders your wheels unnecessary. Financial changes—good or bad—could also shift priorities; perhaps tightening the budget or, the other direction, splurging on an upgrade. And let’s be honest, sometimes the car just doesn’t match your lifestyle as well as you thought it would: maybe it’s thirsty at the pump, too snug for a new family member, or suddenly outclassed by this year’s model (thank you, Toyota and Honda, for moving the goalposts).
Whatever the scenario, those contemplating a premature lease return are usually motivated by factors such as:
- A move to a walkable neighborhood or a city with great public transit.
- Sudden changes in income or financial responsibilities.
- Lifestyle shifts—like expanded families, a new hobby that needs more cargo space, or simply falling out of love with the car.
But before you pull the plug, remember—early cancelation often comes with financial strings attached.
Returning a leased car early, like a year after you finished signing, could be expensive. You are guaranteed to face very early termination fees, which are publicly known as ETFs. This also possibly having to pay off the rest of the rate of depreciation which you agreed to pay after you signed the leasing contract.
How Early Termination Charges Are Calculated
If you do decide to end your lease ahead of schedule, be prepared: early termination charges can pack a punch. These charges aren’t a flat fee—they’re usually based on several factors outlined in your contract.
Generally, you might have to pay:
- The remaining lease payments for the months you’re skipping out on;
- The difference between your remaining payments and the current market (or resale) value of the car after it’s returned or sold;
- Additional administrative or early exit fees spelled out in your agreement.
In short, the earlier in your lease you try to bail, the steeper the penalty tends to be—sometimes running several thousand dollars. It all boils down to how many payments you’re skipping and how much the car has lost in value since you drove it off the lot. So, before racing to hand over the keys, consider whether waiting might be easier on your wallet.
The unlimited amount of funds you owe to the person you got the vehicle from is already determined when you lease. The total cost of your car lease includes the following;
- The cost which is capitalized
This is the negotiated price which is sold of the car, and then the acquisition fee.
You pay for the depreciation rate of the vehicle on which should happen during the term the car is leased to you.
This is also known as the Leasing interest rate.
This is the charge of fees by the person leasing the vehicle to you to sell and transport the vehicle after the lease ends.
Apart from the total cost of the LEASE, ETFs might be anywhere from two hundred dollars to five hundred dollars or more. It depends on the contract terms, though. The remaining amount of funds from your contract could owe, and that could vary. These depend on the car’s value and the period of your lease term. It also depends on how quickly you want the lease to end.
When you want to cancel a lease, you might need to pay the entire outstanding balance for you to get out of the contract entirely.
What Can You Do at the End of a Car Lease?
When your car lease finally reaches the finish line, you’ll be faced with a handful of choices—each with its own set of pros and cons. Here’s what you can typically expect:
- Purchase the Leased Vehicle
If you’ve grown attached to your ride (or simply appreciate knowing how the previous driver treated the brakes), many leases let you buy the car at a predetermined price. This is called the buyout option, and you’ll just need to pay the agreed-upon amount stated in your contract.
- Return the Car and Walk Away
If adventure calls you elsewhere, you can turn the vehicle back in to the leasing company once your term is up. Be aware: You’ll likely encounter standard return procedures—think inspection for excess wear and tear, checking mileage limits, and possibly paying a disposition fee.
- Start a New Lease or Purchase Another Car
Eager for something with that “new car smell” (again)? Most dealerships are happy to keep the relationship rolling. Return your current car and then either lease a different vehicle or step up to purchase a new one—maybe a sporty coupe or something eco-friendly, depending on where your heart (and budget) lead you.
These options allow for flexibility depending on your finances, your fondness for the car, and whether you’re itching for a change or ready to settle into ownership.
Finance Vs. Lease
These are the other options you could make use of to end your lease quickly.
You could check if your lease contract is at a significant place, to begin with. This is when you want to return your leased car very fast. You should check out what the person who leased you the vehicle requires to terminate the contract earlier than assigned. These things might include a time restraint or what other penalty fees you might need to pay. There are leasing contracts that generally have a section on the things that goes into canceling early. Some of these things include a grace period of a day. This is a rare instance, though.
If you are required to pay ETFs, the time for depreciation available on your lease is not an option. You might have some other choices to try.
- You could lease takeover or lease swap.
This involves transferring your leasing contract to another person. If your lease is starting, this could be the route to take. This involves getting someone that would take over your lease following the same conditions. This brand new lessee would need to qualify for the credit score and the income amount. You need to make certain that the new person you would give the vehicle to fits perfectly and the company doesn’t have a problem with to.
New York Car Lease Transfers
A Car Lease takeover can be a great arrangement for both the person transferring the auto lease and for the person taking it over. The original lessee gets the lease payment off their hands, and you get the wheels you need — or want — without a long-term financial commitment for your new vehicle.
There are a number of ways to get out of a car lease and avoid early-termination fees. Transferring the contract to someone else can be a particularly appealing choice. Just make sure your financing company allows such transfers before you start the process. Also find out whether you’ll still be on the hook for payments if the other person fails to make them.
Lease transfers that allow for lots of miles to be driven per month are attractive options for many shoppers. Unique or hard-to-find vehicles also do well.
The easiest way to see if your lease can be transferred is by reading the disclosures on your lease agreement. “Transfer of equity” is contract jargon that essentially says you’ll still be financially responsible if you transfer a lease to somebody and the new lessor fails to pay. If your lease allows for a “full lease assumption,” you can transfer your lease to a new user and wash your hands of all responsibility.
A small percentage of leasing companies don’t permit transfers at all. If you think you might want to transfer your lease down the line, find out if the bank that’s handling your lease will allow you to do so.
Fort Lauderdale’s Most Trusted Car Leasing Company
If you’re looking for car leasing in Fort Lauderdale or the Miami area, Signature Auto Group Florida is the place to be. As a leading leasing broker, we help customers with early lease exits, lease swaps, new leases, and everything in between. With two decades of experience in the New York area collected, our company is confidently expanding its expertise to the South Florida region.
Becoming the go-to company for early lease exits in Miami and Fort Lauderdale is no easy task, but with our commitment to customer service led by a motivated staff, our entry is already favored by most. Standing by you every step of the way, our company strives to guide you in the right direction. Whether buying, leasing, or selling, a dedicated team member is here to attend and impress.
Along with our excellent staff, Signature Auto Group Florida offers a diverse array of services, separating itself from other car dealers in South Florida.
Contact Signature Auto Group Florida Today!
