Minimize or eliminate penalties when you have to break a car lease by transferring the lease, buying the car and then selling it or negotiating with the leasing company, advises RealCarTips.com. Returning the car to the company and paying all the penalties is likely one of the worst options under these circumstances.Continue Reading
Transferring the lease requires the use of a third party, but it is usually the easiest and most cost-effective option, explains RealCarTips.com. Although most leasing companies allow this type of transfer, you have to pay a transfer fee and are still responsible for payments if the person to whom the lease was transferred stops making payments. Some lease holders offer incentives when transferring leases.
Your lease agreement is likely to offer a buyout option on the vehicle, with which you can purchase it and sell it, explains RealCarTips.com. The buyout amount is usually more than the book value of the car, but this is a better option than returning the car, paying depreciation fees and penalties and then having the leasing company refund you the wholesale price of the car, which is much lower. Finally, inform the consulting company that you are breaking the lease because of financial hardship; in this case, the leasing company may make some concessions.Learn more about Buying & Selling