Kip Tips


How to Turn In a Leased Vehicle Early

Jessica L. Anderson

There a companies that can help you transfer a lease to someone else.



Getting out of a lease early can cost a bundle. Leasing companies typically demand termination fees of $300 to $500, plus a few months’ worth of payments.

DOWNLOAD: The Kip Tips iPad App

The easiest way out is a lease transfer. Companies such as SwapALease and LeaseTrader match people who want to get out of their leases with folks who want to get into a short-term lease. You can list your ride for $60 to $175, depending on the type of advertisement; in some cases, you’ll pay a transfer fee of about $150 once you find a taker. (Some lease companies charge a separate fee.) The swap company handles the paperwork, after which the new lessee takes over end-of-lease obligations.

If the market price of your vehicle is higher than the buyout figure your lease company gives you, you could purchase the car and sell it for a profit. Tarry Shebesta, president of LeaseCompare.com, says that with the short supply of used cars, you could come out ahead, especially late in your lease.

This article first appeared in Kiplinger's Personal Finance magazine. For more help with your personal finances and investments, please subscribe to the magazine. It might be the best investment you ever make.


Editor's Picks From Kiplinger


You can get valuable updates like Kip Tips from Kiplinger sent directly to your e-mail. Simply enter your e-mail address and click "sign up."

More Sponsored Links


DISCUSS

Permission to post your comment is assumed when you submit it. The name you provide will be used to identify your post, and NOT your e-mail address. We reserve the right to excerpt or edit any posted comments for clarity, appropriateness, civility, and relevance to the topic.
View our full privacy policy


Advertisement

Market Update

Advertisement

Featured Videos From Kiplinger