Getting out of a car lease is an important Part of New Car Leasing. Between 1 and 2 months before your Car Lease has expired, it is a good idea to consider what your options are. Unbeknown to the numerous car lease skeptics out there, you have a number of choices at your disposal when it comes to leaving a car lease early or on time. You will certainly want to end the lease in a way that best suits your financial considerations and future need for a new or used car. Below, are the typical options for getting out of the lease deal.
Ways of Getting Out of a Car Lease
Turn the Car Back In
This is the most straightforward approach to terminating a car lease. The way you turn your car in varies only slightly among Car Financing companies. In the last few years that I’ve leased from GM, Ford, Honda, Toyota, Hyundai and Subaru. The procedure works like this: Call your leasing company or bank and tell them you are turning the car in because it is at the end of your lease term. They will usually have an inspector come out to your home or office to inspect the condition of the car for any unreasonable wear or tear. After that, they will have you sign something that shows what they did or did not find in the way of excess damages. In my case, there was never anything to worry about here. From there, you will take the car down to your nearest car dealer. Make sure you take your license plates and any personal belongings out of the car. The dealer will usually check the odometer, take the keys from you and you’re good to go. The last step is to call your leasing or finance company and tell them where you left the car. If your lease included a termination fee or deposit, you will get a final bill in the mail, along with any excess mileage or damage costs. I’ve never had to worry about excess damage or mileage. In fact, I’ve never really dreaded ending my car lease. In fact, the entire process is pretty straight forward as far as damage is concerned. Usually, anything smaller than a quarter-sized dent is allowed. As I am about to turn in a 2009 Subaru Legacy, I can tell you that they do things slightly differently: You don’t have to meet with the inspector. Simply take the car to the dealer and they will take care of the inspection from there. Obviously, the risk here is what happens to the car once you leave the dealer? Personally, I will be taking pictures of the car before I leave it there. While turning the car in is certainly straightforward, you do have some other options which might be beneficial to you, especially if you’re worried about excess mileage or don’t want to pay the $300 – $500 Lease Termination Fee. Getting out of a car lease is easier when you research your options ahead of time.
Buy Your Leased Car
What if you Love your Car?
Before you turn your car in, it’s not a bad idea to call the bank and ask them for the pay-off, including sales tax. The Payoff is the residual amount of the car and the cost to you to buy out the lease and own the car free and clear. But not so fast…just because there is a payoff doesn’t necessarily mean you have to buy it for that price. If you did your shopping on Monthly Car Lease right, you probably got an outstanding lease deal, based on an extremely high residual value. That high residual value is probably more than the car is worth. It certainly doesn’t make sense to buy an overpriced car, does it? On the other hand, the leasing company will not be able to re-sell the car to another buyer at the high cost of the payoff either. It might actually benefit them to sell the car to you at a better price. Make your Leasing Company or bank an offer. What do you have to lose? In the case of a Chevrolet Venture Minivan I leased many years ago, the Leasing company made me a very attractive offer to buy the car at low interest and below residual value. I still felt the Van was in great shape and so I decided to do it!.. In the case of my Pontiac G6 2 years ago, GM Financing would not entertain an offer. So, it could go either way. It never hurts to ask. In fact, in the case of my current Lease, Subaru Financial WILL entertain an offer and they make this clear on their recorded message. When I called about turning in the lease, they mentioned that I should feel free to make them an offer on the car if I want to buy it. The payoff on my Subaru Legacy is quite a bit higher than what a dealer would be willing to pay for my car. If I offered them $3,000 to $4,000 less, it might be equal to what a dealer would pay them for it and save them the time and costs associated with inspections, etc. So, it really depends on who you are leasing the car from as to whether or not you can get a better deal on the buy out of the lease. If you’re over your mileage or worried about some dings and dents that might not be covered – or, if you just think it’s a dang good car that you took very good care of, make them an offer for the actual Used Suggested Retail Value of the car. Perhaps, they can make you some very good 3, 4 or 5-year financing too. It’s a win-win situation. On the other hand, if the point of leasing is to drive a new car every 3 years, there is one more viable alternative to either turning the car in or buying it:
Trade your Car Lease into the Dealer
Obviously, car dealers want to sell or lease new cars. If you’re concerned about the termination fee or any other costs associated with your old leased vehicle, negotiate that into your new car lease with the dealer. Make it known to the dealer, that your lease or purchase of a new vehicle is contingent on getting out of your current car lease, cost free. If the residual value is quite high as it in the case of my 2009 Subaru Legacy, the dealer will certainly be motivated to find some other way to help you. In my case, the Toyota Dealer offered to pay my termination fee and last month payment. They paid me $547.00 to lease a new car from them. Of course, you still have to know you are getting a good deal on the new car, without the confusion of your old lease costs being tied into the deal. Don’t make Getting Out of a Car Lease a stumbling block for you. Use your options to your advantage. That’s where Monthly Car Lease is here to help. Always use the monthly car lease specials as a starting point – and refer to my article on How to Lease a Car. If you’re only fear is Getting out of a Car Lease, now you know how to do it.