• How to Avoid Car Lease Termination Fees

    Anyone who has entered into a lease agreement but subsequently realizes they cannot afford to make all of the car lease payments, will need to investigate car lease termination methods and strategies. Unfortunately, if you plan to break a car lease before it expires, you’ll likely have to pay a variety of early termination fees in order to get out of the lease agreement. This can end up costing you a lot of money, depending upon how the leasing company has organized the contract and the stipulations for when you want to terminate a car lease. However, there is a good way to avoid having to pay car lease termination fees when you want to back out of a lease agreement. It’s called car lease assumption or car lease takeover, and it’s the process by which you transfer ownership and responsibility for your lease to another driver.

    Car lease assumption is a good option for someone who is having a difficult time paying for his or her lease. It allows you to avoid the obligation of paying for the lease and to get rid of the car without having to pay a hefty termination fee or fine.

    Step 1 — Get an Inspection Report

    Before you can transfer your car lease, you’ll need to have your vehicle fully inspected. This is to create a vehicle inspection report, which is used to assess the current value of the vehicle. This process is important because cars that have been used depreciate in value somewhat, and the leasing company needs to keep tabs on how much the car is worth before they can transfer the lease.

    Step 2 — Find a Driver to Take Over the Lease

    Next, you’ll need to find a suitable driver to take over the lease for you. This can be a difficult process because it requires some work and creativity on your part. Take out ads in the local newspapers, place classified listings on websites like Craigslist, and consult with friends and family members for possible connections. You should be prepared to offer an incentive of some kind.

    Step 3 — Have the Other Driver Submit to a Credit Report Check

    Once you have found someone to take over your lease, that person will have to submit to a credit check. Following this procedure, contact your leasing company for a lease transfer application and fill out the application jointly with the new lease recipient. Finally, submit the application to the leasing company and await their final approval. At that point, you can transfer the vehicle and the paperwork over.

    Once you’ve completed the application, it will typically take the car lease company between one and two weeks to transfer the car lease over to the other person’s name. Once you’ve received word that the process is complete, you can give the vehicle itself to the new owner of the car lease.