How to Refinance an Auto Lease
It is possible to refinance an auto lease. For some people, leasing a car instead of buying one is the best alternative, but what if you are not really happy with the deal you made? Slick fast talking salesmen and confusing jargon can make you feel like you have just had the wool pulled over your eyes. If you walk away from the dealership not really happy with the deal you made, you may be able to refinance your lease. Here is how.
1. Obtain Your Payoff Information
The first thing you will need to do is obtain your payoff information. The payoff information is the total amount the vehicle can be purchased for. You will need the amount minus any sales tax and also the amount of time the payoff information is good for. The payoff information may only be good for 3 to 30 days, so you will need to hurry.
2. Obtain Lease Refinance Offers
The next step is to obtain offers from auto lease refinance companies. A search on the Internet for: refinance auto lease, lower auto lease rates or refinance auto payment should help you locate a website or two that can search multiple lenders for the best rates. To use these search engines, simply enter the current payoff amount, year, make, model, mileage, and amount you put down and allow the search engine to find you the best deal. Always remember to check out any lender to make sure they are legitimate before signing any paperwork.
Once you have obtained as many offers as you can, you will need to review them for the best deal. The best deal may not be the lowest price. With a car lease, you should also look at things such as maintenance, mileage, and any warranty on the vehicle. You will also want to check out the lender before you sign any paperwork.
Once you have decided which lender offers you the best deal, it is time to submit your information and have a copy of all contracts sent to you. It is a good idea to read these contracts thoroughly before signing them and sending them back. Once you sign them, your new lender will payoff your vehicle and the new lease will start.
Tips and Cautions
- You may wish to consider purchasing the vehicle instead of leasing it. It is often less expensive in the long run to buy the car and some lease refinance companies will give you the option to purchase the car instead of lease it.
- Make sure the original lender does not have stiff penalties for ending your lease early. Some lenders charge a large refinance fee or early payoff fee to discourage people from closing their loans early.
- Consider other issues besides the payment amounts when reviewing either your current lease or refinancing. Things such as mileage, warranties, and maintenance should be included and taken into account.
- Even if you are happy with the lease you obtained, it may be worth looking into any options you may have just to be sure. It does not cost you anything but time, and you may even find you can refinance an auto payment to a lower amount if you do.