Getting out of a lease contract

Unfortunately there are times when unexpected circumstances may occur which make it necessary leave your lease agreement before it has come to an end. In such circumstances your first step is to read through the lease agreement which will outline exactly what you have to pay should you wish to end your agreement prematurely.

Getting out of a lease isn’t as simple as just returning the vehicle when you changed your mind. It’s a legal contract that extends over a fixed period that is outlined in the document you signed when taking out the lease.

You can return the vehicle to the leasing company and pay the outstanding balance of the remaining lease term, which means you are paying for the hire of the vehicle, but not actually using it.

The second option is to transfer your lease agreement which means that a third person agrees to continue paying for the lease until the end of the original lease agreement term. This ensures that you do not get any kind of penalty which may affect your future credit rating; you just have to pay a transfer fee.

There are specific companies who deal with lease transfers and will be able to guide you through the process. These companies are sometimes able to advertise your vehicle and find a suitable buyer who would be interested in taking over the lease agreement.