Leasing a car is a great option for many people who are unable to pay the full amount for a car upfront. With a lease, you are able to make small monthly payments that are able to fit into your budget. However, there are certain times in life when something can happen that is out of your control and makes it impossible for you to make your monthly car payments. If that happens, you may be looking for a way to get out of your lease. Luckily, there are a few ways that a person can get out of their car lease without negatively affecting their credit score. Here are a few ways that you can get out of your car lease.
With this option, you will need to pay a substantial amount of money upfront. When you buy out of a car lease, you are essentially purchasing the vehicle outright. This means that you will now be the owner of the car.
If you decide to go this route, you will need to contact the lease company and tell them that you intend on buying out the car lease. When configuring how much money it will cost to buy out the lease, the company will then consider the down payment that was made and how much the car has depreciated in value when you signed the lease.
If you are unable to afford to pay the costs all at once, you may be able to get a loan for it at a bank or other financial institution. With a personal loan, you will still have to make monthly payments; however, depending on the loan terms, the payments could be considerably lower than your previous payments.
If buying out of the lease is out of the question, the nest best option may be to transfer your lease to someone else. Many people are easier to take over someone's lease because it usually means that they will not have to spend as much money to lease a car. For example, because you already made a down payment when signing the lease, the other person will not be required to make an additional down payment.
To transfer the lease to someone else, the other person will have to be approved by the leasing company to take over the lease. They will then have to fill out all necessary lease transferring paperwork. This is a great option for people who are looking for an easy way to get out of their lease without affecting their credit score.
The is probably one of the more expensive options and should be used as a last resort. When you terminate the lease, you will essentially be paying for the rest of the lease at one time. This is different than buying out the lease. Instead of purchasing the car, you will agree to pay whatever amount is left on the lease (plus early termination charges and other penalty charges) without keeping the car. This option is favourable for people who currently have some extra cash right now but are worried that their funds may be too low to continue to make payments in the future.