One of the biggest perks of leasing a vehicle is convenience, but early termination is anything but. However, it is not impossible. First and foremost, think about why you are considering early termination, and see if those reasons can be addressed without the hassles and penalties associated with ditching an existing lease. Budget is a big reason that people might seek out an exit strategy, especially in today’s social climate people are tightening up their purse strings and eliminating everything they can to tip the scales of their budget to favor saving over spending.
Keep Your Car and Your Cash
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Turning in your lease early might end up costing you an amount of money comparable to other options that will still allow you to keep your car. If your monthly payment is what has set you off on a quest to get out of your lease, consider refinancing your auto loan in order to save money instead. Research the types of lenders that will do auto refinances and start asking questions. The savings you might experience with an improved interest rate might make your payments feel more manageable. Before you do anything else, you can go online and use an auto loan refinance calculator and play around with difference numerical scenarios to see if refinancing is an option for you based on your credit and actually going to generate the savings that you require to satisfy your bank account.
Swap Your Lease
Pending your contract allows this option, you can try and find someone to take over your lease for you. Utilizing this option can happen in two scenarios, one being you have someone in your own circle that can take over the lease payments for you. This frees up your financial obligation to the vehicle but leaves the actual loan intact and unchanged. Another scenario is using a third-party agency that matches people that want to get out of their leases, with people looking to take one over. These agencies usually charge a small fee but if you need to just be rid of your vehicle this is a good way to get there. Some hidden costs to be aware of with this option though, are that some people add in cash incentives to make taking over their lease stand out from the competition. Although this might seem counterintuitive when saving money is the goal, it might be worth a one-time cash payout to get out of a reoccurring monthly payment you can no longer afford.
Buy Your Car
One sure fire way to get out of your lease is to buy it out. Many lease contracts will permit consumers to purchase their vehicle at any time during the leasing period and the amount is usually predetermined, making it nice to know up front what to expect. You can take out a private loan for this, or spend a little of your own money initially to become the owner of the vehicle, then turn around and sell it to a private buyer, this will earn you a higher sale price than trading it in, and allows you to both pay off the new loan having accrued minimal interest as well as pocket any profit that might exist as a result of the sale.
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