How to Bust out of a Lease Agreement

By: Brenden Somerville   |   11 Apr 2016
Man breaking from shackles attached to a car

Leasing is an affordable way to put yourself behind the wheel of new vehicle. Lease agreements vary from customer to customer and dealership to dealership across the GTA and are best negotiative with a reputable sales professional. For those GTA car lease holders that are looking for a graceful exit strategy, there are ways you can cancel your car lease agreement through a lease transfer. When life throws an unexpected curveball or your looking to shake up your vehicle choice, lease transfers are there to help you.

 

Exiting a Car Lease Agreement.

While you are obligated to pay your lease payments for the duration of your agreement, there are ways to either buy out of you agreement or transfer your lease to another driver. It’s suggested that you wait until at least half way through your agreement to consider buying out or transferring the agreement. The shorter agreement will be more attractive to potential takeover customers, looking for a newer vehicle with a short term commitment. It is possible that violating your lease agreement will damage your credit score, especially if you default on your payments. Walking away from your car lease can also be costly, with penalties mounting into the thousands of dollars if you have recently signed on. If buying your vehicle is an option and fits with your lease agreement, you can purchase your vehicle for the remaining value and if you're still looking to upgrade or change vehicles, sell your car or SUV after the fact. There are many options for leaving a lease agreement but doing so above board is very important. 

 

Damage to your credit? Not if you do things right.

One of the biggest concerns people have when looking to exit their lease agreement is whether or not their credit rating will be affected by early exit. Defaulting on the lease payments or terminating your agreement will damage your credit. You have to pay to exit the agreement including early termination fees, and remaining value of the lease (which is why the closer you are to the end of your agreement, the more set up you are to exit). The best way to avoid the credit crunch and unmanageable fees is to enter into a lease change over agreement.


 

What is a lease take over?

A lease take over transfers your lease agreement into someone else’s name. You can hire companies to help you find potential buyers and help you do the transfer. Across the GTA there are companies such as Lease Busters or Lease Experts that facilitate these lease take overs. Once the swap is made, your name is no longer attached to the lease agreement and you can walk away free to choose a new vehicle.

 

Leaving your lease agreement is possible but it’s important to consult your leasing company and do things properly to ensure you are not violating your lease agreement or damaging your credit. For more information about leasing a vehicle in the GTA, contact our leasing department! We have a selection of luxury vehicles available for lease at our North York dealership.

 

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