How to get out of a car lease early
Job change, new baby, moving cities — leases don't care, but the payments keep coming. Here are the five real exits, roughly ordered from cheapest to most painful.
1. Transfer the lease (usually the cheapest)
Someone else takes over your payments and the finance company releases you after approving them. Typical cost: a transfer fee ($75–$500+) and possibly a small incentive if your payment is above market. No early-termination penalty, no negative-equity check to write.
2. Buy out the lease, then sell the car
Pay the buyout price on your statement, take the title, and sell the car yourself. This wins when the car's market value is higher than the buyout — you pocket the difference. It loses when you're underwater or when your state charges sales tax on the buyout before you can resell.
3. Early termination through the finance company
The contract's official exit: you pay the remaining depreciation plus an early-termination charge. It's almost always the most expensive option on this list — get the exact payoff quote in writing before even considering it.
4. Manufacturer pull-ahead programs
Brands periodically waive your last few payments if you lease or finance your next car with them. Only worth it if you already wanted that brand's next vehicle — the "forgiven" payments are baked into the new deal.
5. What about just stopping payments? Don't.
A voluntary repossession still hits your credit as a repossession, the car gets auctioned, and you owe the shortfall plus fees anyway. It is the most expensive option disguised as the easiest one.
Which one is right for you?
It comes down to one number: your lease equity (market value minus buyout price). Positive equity points to a buyout-and-sell; negative equity usually makes a transfer the cheapest way out. Check yours first — it takes 30 seconds:
Decided on a transfer?
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