There are times when your car lease may seem not to be working for you. Maybe you still have more than a year or two left in your lease, but you just don’t want to continue with the lease deal. Perhaps you still want to get a new car through leasing, but you’re tired of your current car. Returning your auto lease early and going for a new one is always the best option.
You’re probably wondering about terminating your lease deal and going for an upgrade. But how can you terminate your auto lease contract without incurring penalties? How can you upgrade your car lease early?
No doubt, you can trade-in your leased vehicle for another one, but that will make you pay early exit fees, so how best can you switch to a higher model without having to deal with the early exits fees and processes? Is there a more profitable way to terminate a lease contract for a new one?
Is It A Good Idea To Terminate A Lease Early?
A change in circumstances can make you end your lease early and walk away, or better still, go for an upgrade—something that best meets your needs. While it is very much possible to terminate your car lease early, doing so is not always a great idea, even if it means turning it in for a new and higher model.
If you feel that your car doesn’t meet your needs again or you simply don’t like your car again and want an upgrade, there are many ways to go about it. Outrightly terminating your lease will always leave you with many financial penalties. Considering that you like your car and it still meets your needs—to an extent at least—keeping your current lease till the end will always leave you in a better financial position.
The cost of keeping a lease and continuing with the payments are always better than what it will cost you to terminate your lease contract early for a new one. But if you don’t mind the ‘little’ financial upset, you can always go ahead and end your lease for a new one. As a matter of fact, there are many profitable ways for you to upgrade your lease with lesser financial consequences.
How Can I Get Out Of My Car Lease Early In NY?
If you don’t want to wait till the end of your current lease term before going for a new model, there are many profitable options for you to go about it. There are many options available for you if you want to get out of your lease early, whether you want to go for an upgrade or not. Some of these options include,
- Lease Transfer
A lease transfer is one of the easiest and the most popular ways of ending a lease early. Depending on your lease terms, you can transfer your lease to another willing party. Instead of abruptly terminating your contract for a new one, transferring your lease to a willing party can save you so much money.
While your lease contract can permit you to transfer your lease, in most cases, you will still pay the lease transfer fee and any other costs that come with it. Also, your dealer may still hold you accountable for any damages to the vehicle or if the new lessee defaults on the monthly payments. So, if you want someone to take over your lease, you might have to make sure that the person has a good credit score. You might also consider offering an incentive like lowering the monthly payments for the new lessee.
If you’re clueless or don’t know how to find someone to take over your lease, many online sites are there to help you. Sites like Swaplease and Leasetrader can help you connect with someone you can transfer your lease to.
- Lease Buyout
What if your lease terms do not permit you to return the car early and go for an upgrade? What if your dealership doesn’t have the upgrade you’re looking for? What is the best way for you to terminate the lease contract and go for an upgrade? The answer is by lease buyout!
While some people don’t consider it the best option, buying out your lease early and going for a fresher model can prove to be the best option for you. You don’t have to wait till the end of your lease to activate the buyout clause. An early buyout allows you to buy the car from your lease dealership.
If your leasing company doesn’t have the car you want to upgrade to, or you simply want to change your leasing company, buy the car from your current dealership, turn around, sell the car, and then lease the new car you want.
Before you follow this route, it is prudent that you know your vehicle’s current worth. There are many ways to estimate the value of your car. You can run through your dealer’s site and check the selling price of the same model and year’s cars. You should also be aware of the termination fee. If you think early buyout, sell and going for a new lease is the best for you, you have to weigh in the fees associated with an early buyout compare it to what you’ll get from selling the car yourself. You should also know that if you can’t shoulder the cost of an early buyout, there are buyout financing options available for you.
However, if you still want to lease a new car from the same leasing company or dealership, the process will be much easier for you. Instead of going through the long route of buying, selling, and leasing a new car, you can simply talk with your dealership or leasing company and find the best way out. Usually, your leasing company will roll over the total amount you owe on the car you want to return and push it into your new deal.
If you’re to take this route, you’ve to keep in mind that there’s every possibility of making bigger monthly payments. However, the amount you’d be making depends solely on the residual value of the car. If at the time you want to terminate your lease deal for a new one, the market value of the car is higher than the estimated value, then you’re in great luck, as you’ll be making far lesser monthly payments.
Leveraging On Equity
‘When you lease a vehicle, you don’t really own it. It belongs to the dealer’, they say, but that’s not the complete fact. If you have a current lease that you want to terminate for a new one, even if the lease has just lasted for a year and you still have more years on the deal, you can still terminate your lease deal, get a new one, and have more cash to spend.
Anytime you want to terminate your lease, whether you want to lease a new model or just walk away, you’ll have to pay a termination fee and the estimated depreciation value of the car. However, your vehicle might be worth more than the residual value due to fluctuations and uncertain market conditions. In this scenario, you can profit on the lower estimated value from your leasing company if you want to return your lease for a new one.
Before you terminate your lease for a new one, get a proper appraisal of the vehicle you’re turning in. you can also get your car appraised by independent dealerships. The bottom line is if your car has equity, you can move into a new deal with more money in your pocket.
Upgrading Your Lease
If you want to terminate your lease early and go for an upgrade in NY, but you’re still confused about how to go for an upgrade, here are simple steps for you.
- Talk With Your Dealership/Leasing Company
If you want to return your lease and go for a new one while the contract is still running, the first thing you’ve to do is to talk with your dealership. All you need is a brief chat to discuss the options available for you and determine the way forward. At the end of it all, the decision is always yours to make.
- Return Your Current Lease And Pick A New One
If you like any of the options available for you or find any right deal with your dealership, the next step will be about returning your current lease, finalizing the details, and walking away with a new lease.
- Check Elsewhere
If you’re not comfortable with the deals on the table for you, you’re always free to explore other options. You can consider any other ways to terminate your deal and lease a new one from another dealership.
Terminating your lease early and going for an upgrade can be a costly and lengthy process. However, it’s still attainable and has many profitable options. If you lease with VIP Auto, you can always get more profitable options of terminating your lease for a new one. When it’s time to lease a new car in NY, reach out to VIP Auto, 1204 Hylan Blvd, Staten Island, NY 10305 https://viplease.com/.
