Automobile Leases: How to End a Lease Agreement?

Automobile leases are an attractive feature because they offer low monthly payments, and the opportunity to obtain a new car every 12 to 48 months. Some people are reluctant to obtain an auto lease. In some instances, leases require a huge out-of-pocket expense at the end of the agreement. However, if you read your lease agreement carefully and adhere to all the stipulations, a car lease may acutally save you money. Here are a few tips for succesfully ending your car lease, without owing the dealership.

1. Before signing the intial lease agreement, read the document carefully. The contents should highlight potential out-of-pocket expenses. For example, what is the maximum mileage allowed? If you exceed this mileage, what is the additional cost per mile? Are you responsible for automotive repairs?

2. Prior to returning the car to the dealership at the conclusion of the lease period, have the car professionally detailed. If possible, allow a dealership to clean the car. Although dealerships charge more money than an independent company, they are able to restore the interior to it’s orginal beauty.

3. Return the vehicle to the original dealership. If returned to a different dealer, you may have to pay a fee.

4. You have the option of buying the car for the amount stated in the original lease agreement, or leasing a new car.

5. Avoid early termination of the lease agreement. Getting out of a lease agreement is a nuisance. Legally, persons who sign a lease agreement are obligated to continue making regular payments. Failure to pay will force the dealership to seek legal action. This can become costly. If you are determined to end a lease agreement, instead of walking out on the lease, attempt to obtain a loan and payoff the lease. Next, sell the car and recoup some of your money.

6. Fix all automotive repairs before retuning the car. After the vehicle is returned to the dealer, it will be inspected for dints, scratches, and so forth. If the dealer repairs the car, they will send you the bill. Avoid this extra hassle by making necessary repairs beforehand.