Q:

How can you break a car lease?

A:

Quick Answer

To break a car lease, return the car to the dealership, notes J.D. Power and Associates. You can also break a vehicle lease by trading in the car for another vehicle or selling the vehicle to another person. The exact method for breaking the car lease depends on the terms of the lease.

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Full Answer

If you return your car lease to the dealership before ending the lease and decide to get the lease back, you may have to pay hefty fees and outstanding payments, explains J.D. Power and Associates. If you trade the current lease for another lease, you can transfer your balance to the newer vehicle. Sell the car to another individual if you want to break the lease and pay off the lease's balance. You can also utilize your car leasing company's buy-out option to purchase your leased vehicle as a way to end your contract.

Check with your leasing company for the option to transfer ownership since some leasing companies offer the option to transfer the lease to another owner, highlights Edmunds. In the case of a lease-ownership transfer, the new owner becomes responsible for the payments or the amount left on the account. However, some leasing companies still hold the original owner liable for the payments if the new owner goes into default.

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