Monday, October 02, 2023

When to Get Out of Car Lease


People who want to get out of a car lease do it for a variety of reasons, and at different times in their lease.

Some folks simply realize they don't like the vehicle they just leased, and want out. 

Unfortunately, there are no consumer laws providing for returning motor vehicles. That allows lease companies to make their own rules. For example,  most lease companies have provisions in their lease contracts that prohibit lease termination within the first 12 months.

Many companies also prohibit an early exit within the last few months. This not usually a problem since the cost of simply continuing to make payments can be less than the cost of getting out early, even if you actually return the car early.

In most cases, the least costly strategy is to stick with the lease until the end, when you can simply return your vehicle and walk away. If this is not possible, be prepared to pay for the privilege of an early exit.

[ Note that all car lease contracts contain "fine print" that explains how they determine the cost of an eearly termination, but don't expect to be able to understand it.]