The buy versus lease debate has raged since the auto lease became popular but one thing is for certain about a lease: You aren’t going to end it early without paying a lot of money to do it. The recent economic headwinds have caused a rise in not only lease defaults but also people who, due to a job loss or other economic event, want to terminate their lease early. When they call the leasing company or go to the dealership where they leased the vehicle, they learn that early termination of a lease is difficult and expensive.
Why? Because the monthly payment for your car lease is calculated with the assumption that you’re going to hold the lease through the end of the term. If you don’t, the leasing company loses a lot of money in part, because they have to recoup the cost they incur for the depreciation of the car. The earlier you terminate your lease, the less money they recoup. Although you’re probably going to have to pay something to get out of your lease, there are ways to greatly minimize the payment.
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