January 12, 2009
When my husband and I went to trade in our car a year ago, the salesman talked us into leasing a car instead. He said leasing was better for us because we're retired and don't drive a lot. But we don't like this car. Can we get out of the lease and get another car? — Estelle Just, Pembroke Pines
A vehicle lease is a legally binding contract that, as you are discovering, can be hard to break.
Most leases, including yours, have early termination penalties; the more time left on the lease, the higher the price. Your contract clearly states you face "up to several thousand dollars" in costs for backing out.
Some dealerships might offer you a "drop-lease" deal if you agree to lease another vehicle from the same manufacturer, or a "lease buyout" if you want to buy a new car from a different manufacturer. But these offers usually are available only to consumers with just a few months left on their leases, said Ted L. Smith, president of the Florida Automobile Dealers Association. And some or all of the remaining lease balance usually is wrapped into the new deal, so examine the financing details carefully.
Another option is "lease swapping" through private companies that connect people looking to lease with those, like you, who want to get out of their contracts.
Anthony Giorgianni, associate editor with Consumer Reports Money Advisor, suggests checking out LeaseTrader (leasetrader.com or 800-770-0207) or Swapalease (swapalease.com or 866-792-7669). But this requires a lease to be "assumable," and yours is not.
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com