How to Turn In a Leased Vehicle Early

There a companies that can help you transfer a lease to someone else.

Jessica L. Anderson
By
published
in How-to

Getting out of a lease early can cost a bundle. Leasing companies typically demand termination fees of $300 to $500, plus a few months’ worth of payments.

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The easiest way out is a lease transfer. Companies such as SwapALease and LeaseTrader match people who want to get out of their leases with folks who want to get into a short-term lease. You can list your ride for $60 to $175, depending on the type of advertisement; in some cases, you’ll pay a transfer fee of about $150 once you find a taker. (Some lease companies charge a separate fee.) The swap company handles the paperwork, after which the new lessee takes over end-of-lease obligations.

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If the market price of your vehicle is higher than the buyout figure your lease company gives you, you could purchase the car and sell it for a profit. Tarry Shebesta, president of LeaseCompare.com, says that with the short supply of used cars, you could come out ahead, especially late in your lease.

This article first appeared in Kiplinger's Personal Finance magazine. For more help with your personal finances and investments, please subscribe to the magazine. It might be the best investment you ever make.

Jessica L. Anderson
Jessica L. Anderson
Associate Editor, Kiplinger's Personal Finance
Anderson has been with Kiplinger since January 2004, when she joined the staff as a reporter. Since then, she's covered the gamut of personal finance issues—from mortgages and credit to spending wisely—and she heads up Kiplinger's annual automotive rankings. She holds a BA in journalism and mass communication from the University of North Carolina at Chapel Hill. She was the 2012 president of the Washington Automotive Press Association and serves on its board of directors. In 2014, she was selected for the North American Car and Truck Of the Year jury. The awards, presented at the Detroit Auto Show, have come to be regarded as the most prestigious of their kind in the U.S. because they involve no commercial tie-ins. The jury is composed of nationally recognized journalists from across the U.S. and Canada, who are selected on the basis of audience reach, experience, expertise, product knowledge, and reputation in the automotive community.