Nowadays many people prefer leasing cars to buying. But somewhere in the middle of the term, some will want to end the lease. Is it a possible thing to do? Yes, it is. Among the reasons why lenders want to terminate their lease is because maybe they moved to a different town, financial constraints or the need for a better car. Whatever the reason, below are some of the termination options available. Read on.
Return the Car
One of the ways to terminate a lease is by returning the hired car to the owner. However, you will be required to clear the monthly payments due in addition to extra charges associated with wear and tear. Note that, you will not be waved out of penalties or any other costs upon returning the car before the lease period is over. This might not be the best thing to do if you are no longer able to pay the monthly charges.
Lease Another Car
Another termination option is by lending another vehicle. If you think that the first option is not good for you, then try this one. You can handle your situation by lending another car. But this comes with its weight as well. All the outstanding dues from the first lease will be transferred to the new leasing. You will find that you are making double payments which is expensive as well.
Buy the Lease
Buying the lease is another option of terminating a lease, but it might be costly to the lender because the leasing rate is more than the market price of the vehicle. Do not expect to get any profits from this option. But in case the market price of the lease becomes lower than the market price of the car, you might make some profits. Do not raise your hopes high because such instances are rare because car hire companies know how to make exact value estimates.
Last but not least, you can transfer your lease to another party. However, he or she will enjoy many benefits because before the transfer is done, you must pay all the outstanding charges. If you have been having issues with your leased car and did not know what to do to end the lease, the options above should help you. However, it is clear that the options will cost you a lot so, you must be sure that you want to lease that car to avoid unplanned expenses when you want to end the lease before the right time.