Exit early
Exiting early is rarely the cheapest path, but it is sometimes the least bad one. Which route works depends almost entirely on your lender's rules and on whether the car is worth more than what you owe, both of which can only be approximated until you ask.
Your situation changed, a move, a new job, a payment you no longer want, and waiting out the remaining months costs you more than getting out does.
Straight early termination is usually the most expensive route. Lenders can bill remaining payments plus fees, and not every lender allows transfers.
2–8 weeks, depending on route
End the lease before the term is up, either by transferring it, selling the car through a buyout, or paying the lender's early termination amount.
What it means
Leave the lease before its end date. There are usually three routes: transfer the lease to someone else, buy the car out and sell it, or ask the lender for an early termination payoff and settle it.
How it works
- 1Ask your lender for an early termination payoff figure and confirm whether lease transfers are allowed.
- 2Compare that figure to an estimated market value for the car today.
- 3If the estimated value is close to or above the payoff, buying out and selling can be cheaper than terminating.
- 4If transfers are allowed, listing the lease can hand the remaining payments to someone else for a transfer fee.
- 5Whichever route you take, get the final settlement figure in writing before you commit.
What it costs
Early termination amount
Often the remaining payments plus fees
Formulas vary by lender and contract. Some credit the car's value against the balance, some don't. Ask for the number in writing.
Lease transfer fees
Commonly a few hundred dollars
Only available where the lender permits transfers, and the new driver has to qualify on credit.
Buyout and resale
Buyout price plus tax, minus what you sell for
Can come out ahead when the estimated value is above the buyout, but you carry the sale yourself.
What to do next
- 1Call your lender and ask for the early termination payoff and the transfer policy.
- 2Get an estimated value range for your car as it sits today.
- 3Price all three routes, terminate, transfer, or buy and sell, as full totals.
- 4Check whether simply riding out the remaining months is cheaper than any of them.
- 5Get the chosen route's final figure in writing before you sign or hand over keys.
Estimate what it takes to get out early.
See an estimated cost of ending your lease ahead of schedule, and whether a trade, a buyout or simply waiting it out would leave you better off.
Step 1 of 6 ·Your goal
Compare with the others
Hand the car back at the end of the term and settle whatever the inspection and your contract say you owe.
Purchase the car for the buyout price already written into your lease, instead of handing it back.
Use the gap between your car's estimated value and your buyout price as a down payment on whatever comes next.
Exit early: common questions
Not without a settlement. Returning a car before the end date is treated as an early termination, and the lender will bill the balance their contract allows.
Ready to see your estimated number?
Three minutes, no account, no credit check. Just an honest range and a clear read on your best exit.