What happens if you return a leased car early

Can you return a leased car early? How to return your lease? What happens if I get a lease car? Can You terminate a lease early? With an early termination, the customer arranges with the finance provider to return the vehicle early for a set fee which is calculated by the funder.

If you want to cancel the contract then you ’ll have to pay off the remaining amount in full. As long as you haven’t exceeded the agreed mileage cap in your contract and the car isn’t damaged , you can simply return your leased vehicle. Afterwards, you can take out a new deal on a different model, or look elsewhere and walk away. Regardless of whether you have leased a car for personal use or through your business, the procedure at the end is the same.

Returning your leased car to the dealer early is probably the worst option you can choose, but if you have no choice and just want to get out of the deal, it will certainly end the lease. Inform your dealer that you are bringing the car in to end the current lease and hand over the keys. If you are not able to continue making your car payments until the end of the lease, you have several options to terminate the contract early. The cost of termination depends on the option you choose.

Whichever decision you make, be sure the car is clean and well-maintained when you return it to the dealer to avoid additional charges. When leasing a vehicle, the buyer is agreeing to make regular payments , follow a scheduled maintenance plan , and keep the vehicle for the duration of the contract. A popular misconception is that it is impossible to end a lease early. In truth, all leases can be terminated early. If you have a Hire Purchase Lease and you want to hand your car back early then you can.

Bear in mind that handing a lease car back early could see you carless and still liable for a substantial amount in monthly rentals , penalties and fees. Voluntary Termination is the legal right of a borrower (you) to cancel your finance agreement early. Should you find yourself stuck with a lease car you can’t afford – or one that simply no longer meets your needs – there are a few options. If your leasing company offers the option, ending your car lease early means you’re released from making remaining payments on your current leased vehicle.

But it also means that you have to turn in the car and pay the balance due , including any costs , fees and penalties associated with early termination. But don’t despair just yet – there are indeed ways to get out of your lease without paying an arm and a leg. There will likely be an early termination charge from the finance company you lease your vehicle from. Early repayment option lets you keep or sell the car. It is also possible to pay off a PCP deal early.

You ’ll need to get a settlement figure from the finance provider, which shows how much you ’ll have to pay to tie up the contract early. This leaves you with two options – pay the settlement figure and keep running the car , or sell it. Therefore, you will owe any remaining lease payments, any damage or over mileage costs plus the lease termination fee. If you return the leased vehicle early you are still responsible for fulfilling the contract. There are alternatives to returning the leased vehicle early.

You can trade it or you can sell it (for example to a place like Carmax). Any Advance Payment you have paid will be refunded on a pro-rata basis and you may be eligible for a pro-rata Good Condition Bonus. The potential penalties for terminating a car lease early. Car manufacturers only make money on a lease if you make all of your payments.

So, in order to keep you in the car lease for the duration of the term, leasing arrangements typically include a number of penalties that apply should you try to exit early. If you have not paid of the contract, you can still get out of your car finance through early settlement. Early settlement is best if you can afford to pay off the full remaining balance, or if the trade-in value of the vehicle is greater than the settlement figure.

It can happen at any time during your agreement. Some forms of finance allow you to return your car early , but there are rules to consider.