Can I Turn in a Leased Car Early?

Leasing a car is seen as an advantage for someone looking for a lower monthly payment on a new vehicle than financing the vehicle would precipitate. Lease customers who want to terminate car lease contracts are subject to the terms of the lease agreement. There are options for breaking car leases that do not harm a customer's credit.

Rollover

Any car dealer that offers vehicle leasing will terminate car lease agreements for customers who sign a new lease. Dealers hold customers accountable for lease terms including the mileage allotment and excessive wear-and-tear clause. The dealer then receives the vehicle and pays off the remainder of the lease. The customer's new lease will have the dollar amount of all remaining payments from the old lease written into the new lease financing.

Lease Transfer

Some lease contracts include an option for car lease transfer. This allows the lease customer to find a person willing to take over the car lease under the current agreement. The new lease customer will naturally be subject to the same credit evaluation as the original customer for the dealer to approve the transfer in most cases. The original lease customer is listed as fulfilling the contract on credit reports.

Purchase

The car lease will have a buy-back fee listed for the purchase of the vehicle after the lease is fulfilled over the agreed time. Customers breaking car leases to purchase their vehicles must make an agreement with the dealer on purchase fees which usually includes the remaining payments from the lease. The purchase generally costs more before the lease is fulfilled. Remaining payments may be absorbed into the purchase financing arrangements.

Options

One of the factors that cause car dealers to forgive car lease termination includes customers moving to states that don't allow the lease. Not all lease terms are approved in every state. Some dealers will recognize certain financial hardships as valid reasons for breaking car leases. Customers who are not able to make lease payments are encouraged to meet with dealers to make arrangements for reduced or deferred payments to preserve good credit ranking.