Breaking a Car Lease: A Solution to be Free?
Even though the streets are already filled with so many cars, we have to contribute to the numbers. It’s not always about wanting, but also about needing. As a new family with kids, you must think of a way to travel together with your family. Perhaps, buying a new car is the solution. However, spending thousands of dollars for a car is too much for you. This is when leasing comes in handy. You can drive a car with your family traveling around the city. However, that’s only the good part. Sometimes leasing is just too much. You also have to pay the bills. Your children are going to university, and daily expenditure is getting more expensive. You look at your leased car and think that it’s time to stop. Breaking a lease car perhaps is an option. However, it comes with its own risk. You may have to pay penalty fees and pay the remaining lease payments if you decide to do it immediately. That’s why reading your agreement is important before you lease a car. But that’s the past. Here are some things that you can do when breaking a car lease.
Transfer your Lease
If can’t your lease anymore, transferring it to someone else can be a good option. Transferring a car lease is considered the easiest and most popular way. You can do it yourself and find someone who is willing to continue your payment. On the other hand, if you can’t find anyone by yourself, you can use a third-party service such as Swap A Lease or Lease Trader. However, not everyone can be qualified to take over your lease. The person has to qualify the terms and conditions given by the dealership. You may also have to pay some fees for the transfer. However, the amount is not as large as when you have to pay for the remaining fees. Some dealerships don’t let you transfer the lease, so make sure you read your agreement carefully.
Early Buyout
If you have enough savings, this option may help. An early buyout is an option given by the leasing company if you want to purchase the car early. The reason for you breaking a car lease is because you can’t continue to pay and you don’t want to spend too much money at one time in the first place. However, the benefit of the early buyout is it only costs you the remaining payments. Perhaps there’s an additional payment, but it’s better than paying the remaining lease and still not fully owning the car. You can always sell the car again after you buy it. This way, you can escape the lease and earn some more afterward.
Conclusions
All in all, before you break a car lease, take a look at your current conditions. From the options above, choose one that suits you the most. Another thing that you have to consider is the long term effect. Even before you decide to lease a car, think about what will happen to you in the next five or ten years. This way, you can anticipate and minimize the risks when you’re breaking a car lease. It can be a solution, but it can also be a burden. There are also other options if financial is not your issue. You can trade your car once you’re bored of it, buy it at the end of the lease term, or return it if you have enough money. Either way, you need to do it wisely.
