Question: Can I just turn my leased car back into the dealer with 2 years left to pay on it?

June 11, 2005

Dear Tony

First I would like to say I am very impressed with the information available on your website. I think everyone should be aware of this information before they even think about buying a car.

I am writing to you because I have a 48 mo lease and have already paid on the lease for over two years. My husband is in the military and we have received orders to move overseas and I would like to turn the car in to the dealer. I am curious to know what I must do to accomplish this or what the dealer could charge me for turning the car in early.

Any information would be a tremendous help.

Thanks again and Love your website!

Courtney L.

Answer:

Hi Courtney,

Thank you for your kind comments about my website.

Courtney, a lease is a financial contract much the same as a regular car loan. Once you sign on the dotted line there's no backing out. You're obligated to make all 48 payments or to actually buy the lease out by purchasing the car. To do this you have to contact the lease company and find out what the payoff is.

You can try to sell the vehicle - again - for the payoff amount, then you're out from under the contract. Perhaps you can find someone in your family or a friend who will be willing to make the payments for use of the car. Of course, you'll have to list them on your insurance.

Another alternative would be exploring a website called SwapaLease.com. You may be able to find someone there to buy out your lease.

Another idea is to contact the lease company and explain that your husband is in the military and that you've been ordered overseas. They might have some kind of policy in place to make an exception for military personnel. God knows they should.

Whatever you do, don't just turn the car back into the dealer without arranging to pay off the lease. This will be like a repossession and will mess up your credit.

I hope this helps. Good luck...

All my very best...

Tony Iorio