Leasehacking 101: How to End Your Lease Early
Welcome to Contributors’ Column, where we feature content authored by Leasehackr members. Today’s article was originally posted by Trusted Hackr BoardWalkNJ. Last edited by the Leasehackr editorial team January 8, 2024 to reflect current conditions.
So you want to get out of your lease? You could be over mileage, in need of a larger or smaller car, or simply desire something new.
First, check to see if the bank your lease is through permits lease transfers. Some companies, such as BMW have relatively few restrictions and make it extremely easy to transfer a lease, while others such as INFINITI require the original lessee to remain liable if anything happens to the vehicle. Others, such as Hyundai, do not permit transfers at all!
Assuming you can transfer your lease:
If you got a great Hackr deal, you could post it in the Private Transfers section of Leasehackr Forum to gauge interest. Sometimes a cash incentive that effectively reduces the payment is necessary if it is not a good deal or if there are few miles remaining.
If you can’t transfer your lease (or believe you could have equity):
Check Equityhackr or your local new car dealer to see how much they will offer for your car. If their offer is higher than the buyout amount, you will receive a check for the difference. If their offer is lower, then you would be required to pay the difference. It also makes sense to check to see if you have any positive equity near the end of your lease. By selling the car through Equityhackr or a local new car dealer, you could avoid the disposition fee (depends on the brand) and any wear and tear charges. Please note, some companies, such as Audi and Volkswagen, give dealers different buyouts than you, the lessee.
If you have negative equity (you owe more than it is worth), you have several options. One common option is to investigate whether it’s better to make your remaining payments and return the vehicle, or have Equityhackr or a dealer buy out your lease and apply the negative equity towards a new lease.
Assume you have a lease with a $400 monthly payment and you have five payments left to pay and the disposition fee (let’s assume $395 for Chevrolet). The dealer could pay $2,000 to close that lease and add those payments to a new lease (and you would receive a bill for the disposition fee). Adding $2,000 in negative equity adds approximately $56 a month to your new lease (assuming 36 months).
If you believe that you must get out of your lease because of mileage overage:
Look into whether or not you can prepay ahead for miles at a discounted rate. Some manufacturers have programs that allow this!