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Terminating your Lease Early.

If you terminate your lease early, expect to pay for the privilege.  Remember that you entered into an agreement asking the lessor to permit you to drive his vehicle while repaying him for that right over the term of the lease. If you want to quit early, you will still have to give the lessor essentially what he bargained for when he entered into the lease with you. The cost is significant because what you had bargained to pay over the entire lease term must be paid at once on early termination.  The thing you need to keep in mind most about early termination is that it may require you to make a significant outlay of cash. Whether or not it makes sense under the circumstances depends on a number of factors. Listed below is the main factor for early lease termination.

If you terminate early, you should expect to pay:

  • A disposal fee if you return the car (usually between $250 and $400),

  • Any past-due payments.

  • The remaining payments due under the lease (without interest).

  • An early termination penalty.
  • Any damage or major wear and tear.

    Read your lease termination agreement for more.
     
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