So, you’re leasing a vehicle but half-way through the lease term you’ve discovered your needs have changed and you want a different vehicle. What do you do now? That’s actually a pretty common question: Can I trade in my lease early and trade-up to something better?
The short answer is yes. Contrary to popular belief, virtually all lease policies will allow you to get out early, but there could be negative consequences. In this blog, we’ll explain the ins and outs of trading-in your leased vehicle early.
“Leasing a car instead of buying provides the benefits of a lower monthly car payment and the ability to turn in the keys and walk away at the end of the lease term. The opposite side of those benefits are the greater difficulties you face when you want to get out of a lease before the termination date. You can trade a leased vehicle in early. You just need to understand the possible consequences.” - TheNest.com
Lease Payoff Amount
This is the amount of money left owing on your lease. When you sign a lease agreement, you’re agreeing to pay a certain amount of money monthly for a set term. If you’re looking to get out of a lease early, that remaining amount will need to be paid off or transferred to the next vehicle you’re looking to buy or lease. You can find out your lease payoff amount by contacting your lender or the dealership you got your vehicle originally.
There are potential financial penalties for getting out of your lease early, even if you’re trading-up to a newer, more capable vehicle. Since all policies are different the penalty could be a small fee or, in some cases, you may have to pay the equivalent of all your remaining monthly payments. It’s really dependent on the conditions of your lease and your particular situation.
“If you've decided you need a different vehicle, contact your dealership and discuss your options for rolling your lease into the lease or purchase of a new vehicle. Some dealerships may offer special incentive programs for turning in a lease early without penalty as long as you sign another lease.” - DMV.org
Depending on the vehicle you’re currently driving, it could be a sought after model that many people are looking to drive. If that’s the case there could be an opportunity for someone to take over your lease so you can move on to the vehicle you really want.
“You might be able to transfer your lease to someone else who’ll take over the car and payments for the remainder of the contract.” - NerdWallet.com
Our leasing team is here to answer all your questions and help you decide what option is best for your budget and lifestyle. Feel free to contact us anytime.