When you lease or finance a vehicle, you’re making a very serious financial commitment that needs to be carefully thought through. Before you lease a vehicle, take some time to assess your vehicle needs, your financial obligations, and your long-term goals. Leasing a vehicle usually involves a 2-3 year commitment depending on your lease terms, and you should plan on staying in the lease for the entire duration of the term to avoid any costly charges or other financial burdens.
However, there are certain circumstances that require you to end your lease early. If you ever find yourself in a position that would require you to end your lease early, know that you have options and that the team here at Orangeville Honda will be here to assist you in any way possible. Here are a few ways you can get out of your lease early.
By far the most financially viable solution to ending a lease early is to simply transfer the lease term to another person. This works particularly well if that person was already shopping for the very vehicle that you have. When you do a lease transfer, you are simply signing over the lease to another person, who will then be responsible for the remaining monthly payments.
This is usually the most inexpensive option as the only costs involved are the administration fees to complete the transfer. This option is ideal if you want to end your lease AND get rid of the vehicle.
Another option if you want to end your lease but keep your vehicle is to do an early buyout. An early buyout is where you simply pay the dealership the entire sum of the outstanding remaining balance left on the lease, plus the residual value and any applicable taxes and fees.
Once you complete the buyout, you will effectively own the car as if you bought it. This is a great option if you want to end your lease early but KEEP your vehicle. However, the potential downside is that most vehicles lose the majority of their value in the first couple of years, which can lead to this option being very costly.
There are some rare cases where a vehicle will actually gain value, in which case you could make a profit by selling the car privately after doing an early buyout. If you have any questions about whether or not an early buyout is a good idea for you, don’t hesitate to contact us. We’ll be glad to answer any questions you may have.
If you want to end your lease early so that you can lease a different vehicle, you will usually have the option to do so. When you end your current lease, you will still be responsible for the remaining outstanding balance on your lease term, plus residual costs and taxes.
This can lead to a risky situation when changing leases because if the value of the car you were leasing is less than the remaining balance, you’ll be stuck paying depreciation on both your previous vehicle as well as your new lease.
WHAT SHOULD YOU DO?
Try not to get overwhelmed when trying to figure out how to end your lease early. Financially speaking, the best option is usually to simply ride out your lease term, but, if for any reason you find yourself in a situation where you need to end your lease early, don’t panic.
With the right information and some careful strategic planning, you’ll be able to arrive at the perfect solution for your unique situation. As a customer of Orangeville Honda, you will receive any assistance you need regarding your lease from our finance team. We work hard to make sure our customers get the attention and service they deserve.