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What options do I have for terminating a lease on a vehicle?
A job loss and therefore change in income is making it extremely difficult to keep up with my lease payments. Do I have any outs?
Public Comments
- Read the lease contract. it must outline any specifics for early cancellation of it. Look to see if there is a loss of employment clause in it. Call the dealer that you leased the car from. They 'might' be able to help.
- There isn't a way out that won't cost you money. Lease contracts, like any contract, are binding. There are expensive "termination costs" that you will have to pay if you simply return the vehicle. However, you do have options. Here's a link to an article I wrote about breaking leases. It shouldn't help with your situation. http://www.ridewithg.com/index.php/2008/07/breaking-a-lease-and-other-options/
- He's right, you can read the lease terms, or contact those who gave you the lease, to see what early termination agreement was in the lease if any at all. If that doesn't work, you can put your car up on one of the sites below. Basically its like subleasing them, somebody takes over the lease and pays on the vehicle. Downside is, remember that they can get a new car lease for what your payings soooo, you may have to eat 100-200 dollars worth of the lease payment
- No matter what happened with your income, you are still responsible for the remaining payments on the lease, in addition to an early term penalty in many cases. Depending on the car, you may be able to sell your way out, if the car is worth more than the payments and the residual. Unlikely but possible. Find out how much you can sell it for and see what you owe on the lease and buyout.
