04.21.06
Getting Out of a Car Lease - What’s the best option?
The Dollar Stretcher: Gary Foreman - Linda has asked a question that I get regularly. How can I get out of a car lease? Anyone who is already leasing or thinking about leasing should consider how they would answer Linda’s question. Linda needs to recognize that a car lease is fundamentally different from buying a car and making payments. When you buy a car you own it and have agreed to pay a certain amount for it. You can sell the car. Typically you can pay your loan off early. When you lease a car you’ve agreed to keep it and make payments for a certain period of time. You do not own it. So you can’t sell or trade it.
Ok - so our take on this is if Linda is currently leasing and deciding what are the options to get out of a car lease, well, there are a few. Linda can simply return the lease at the end of her lease contract, she can buy out her lease and the end of the lease agreement, or an alternative, which is growing in popularity, is to find someone to transfer a car lease too. In other words, bust out of the car lease during the current auto lease agreement and transfer the car lease to another consumer who’s seeking to take over a car lease for a short-term.
Though before she does, it’s best to use some form of car lease calculator to determine which option is finanicially best for her. In my opinion the best option is what best suites Linda’s financial situation and personal goals. If she has a baby on the way, or a new home purchase, or needs the money for school but still requires a car, her decision as to what financial option is best for her and the car lease depends on her situation - everyone is different.