Car Leasing 301 - Terminating the Car Lease Early

Terminating the Lease Early

Ending your lease agreement early can be very expensive. Previously, a consumer should had avoided this at all cost – however every consumers lifestyle changes that can affect their ability to maintain the lease. These days there are alternatives to terminating the lease by returning the car back to the lease company and paying the fines. There are a few services on the web these days that help bring buyers and sellers together of consumers seeking to break their leases early, and consumers wanting to take over a lease, but not for the full duration. This strategy to get into a lease, and get out, is a great means to save you the expensive costs of the termination penalty fee.

Many lease agreements won't even let the consumer get out of the lease until they’ve leased the car for at lease 12 months. After that time, there are provisions for terminating but it can be very expensive.

Destroyed or Stolen Vehicle

If your leased vehicle is totally destroyed or stolen – this is a means of early termination in the eyes of the leasing company. Unless you have gap protection, you are exposed to the same penalties

Gap protection coverage is very important and is strongly recommended. Sometimes called gap insurance, Gap Protection covers any additional amount that you might owe after your insurance company pays off the vehicle. This protection is generally included in most of today’s lease contacts. However in some contracts, it’s actually an option for a charge by the dealerships.

If your lease contract doesn't automatically provide gap coverage, and it isn't offered by your dealer, check with your auto insurance company or bank.

Read the fine print in your contract to find out what protection you may already have, or don't have.

Part V: Short Term Car Lease