Can You Break a Lease Early Without Penalty?
Table of Contents
Key Takeaways
- Fees related to the depreciation of the vehicle are generally unavoidable when a lease is broken early
- Transferring your lease to another person can help you avoid penalties
- It’s worth seeing if your dealership is willing to take back the lease
- Buying out your lease can help you avoid fees if you wish to keep the vehicle
Early Lease Termination
There are countless reasons why someone may want to end a lease earlier than expected. However, when considering terminating the lease of a vehicle, fees are often a concern. Though it is very common to have both early termination fees and depreciation-related fees when terminating a lease, there may sometimes be ways to end a lease without paying fees. However, knowing which option is right for you can sometimes feel a bit confusing.
At Ontario Chrysler, we are the Ram, Chrysler, Dodge, and Jeep dealership Toronto residents turn to when looking for the best selection of Ram, Jeep, Chrysler and Dodge vehicles for lease. In this post, we provide helpful insight into how to get out of a car lease without penalty and get into a vehicle you really want.
When looking to end a car lease early, it is to be expected that you will need to pay an early termination fee of a few hundred dollars, as well as some administration fees. However, you might not be aware that you’ll likely also need to cover depreciation costs. To get out of a lease without penalty, your typical options are to buy out the lease and own the vehicle or transfer the lease to another person. If you don’t want to own the vehicle, finding a person or company to take over your lease may be mutually beneficial.
Pros and Cons of Ending a Lease
| Pros | Cons |
|---|---|
| Ending a lease early can alleviate the stress of lease payments that have become too costly | Finding someone to take over your lease can be a lengthy process |
| Ending your lease and purchasing the vehicle could potentially help you refinance with lower monthly payments | Fees are typical in any sort of transfer of lease or end of a lease agreement, and you could still end up paying some fees despite your efforts |
Frequently Asked Questions
What Happens at the End of a Lease?
If you decide that ending your lease early isn’t the right option for you, you’ll still want to be aware of what happens when your lease term is up. Generally, at the end of a lease, you can opt to return the vehicle or purchase it. Whether you choose to return the leased car or buy it, your original lease term will end. Our post, What Happens at the End of a Car Lease, provides the information you need to make an informed decision regarding what to do at the end of a lease.
Is it Better to Lease or Finance a Car?
Once your lease has ended or you have broken your lease early, you might be wondering what comes next. If you have been left feeling unsure about the pros and cons of leasing vs financing, we can help. See our post, Is It Better to Lease or Finance a Car? How to Choose the Best Financing Option for Your Lifestyle, for more information on the pros and cons of each financing solution.
Conclusion
When it comes to ending a lease early, fees are to be expected, and you won’t be able to guarantee a transaction without fees or penalties. If you are looking to avoid penalties for ending your lease early, having another person take over your lease could be the best option. It may also be a good idea to see what the cost of buying out your vehicle is before making any decisions about transferring your lease, as refinancing could help solve your issues with your current lease.
Hadeel Hijazieh – VP Digital Marketing at Ontario Chrysler Group
Hadeel has over 15 years experience in Automotive Digital Marketing with a focus on Brand dominance. She is a member of the dealer council at various leading marketplaces in Canada. Outside of work, Hadeel can be found splashing acrylic paint over canvas in her home studio.
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