Reasons for Early Termination
The reasons for ending or changing a lease agreement are usually dictated by either a change in lifestyle or financial status.
Reasons can include:
Vehicle needs have changed: Maybe your family is growing and you need a bigger car, or maybe you need a smaller, more fuel-efficient vehicle.
Annual mileage has changed: Your new commute might force you to exceed the annual mileage restriction for your lease.
Change in location: You're moving to a new city where you won't need a car.
Improved financial situation: Thanks to a raise at work or an improved credit score, you can now afford a larger monthly payment.
You changed your mind: It's human nature—you thought you really wanted one vehicle, but after driving it for a while, you decided it's not right for you.
Whatever your reasoning behind early lease termination is, you'll need to know what you're up against.
Lease Termination Penalties
Penalties for early termination of a car lease can vary from one dealership to the next.
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Early lease termination penalties can include:
Remaining payments on your lease.
An early termination fee.
Costs related to preparing the vehicle for sale.
Storage and/or transportation of the vehicle.
Taxes associated with leasing, if any.
Negative equity between your lease amount and the current value of your car.