{"id":1529,"date":"2019-09-25T10:22:10","date_gmt":"2019-09-25T14:22:10","guid":{"rendered":"https:\/\/articles.carcostcanada.com\/?p=1529"},"modified":"2025-03-06T16:25:27","modified_gmt":"2025-03-06T21:25:27","slug":"how-to-get-out-of-a-car-lease-early-without-paying-penalties","status":"publish","type":"post","link":"https:\/\/articles.carcostcanada.com\/how-to-get-out-of-a-car-lease-early-without-paying-penalties\/","title":{"rendered":"How to Get Out of a Car Lease Early (Without Paying Penalties)!"},"content":{"rendered":"

There\u2019s nothing quite as exciting as driving your new car off the lot. But sometimes, you may have a change of heart and want to trade that sports car in for something more affordable. If you\u2019re on a lease, can you still break it after signing the agreement, disclosure statement and insurance forms without facing any penalties?<\/span><\/p>\n

Yes, you can! In this article, we explain <\/span>how to break a car lease in Ontario<\/span><\/a>. We also reveal <\/span>how a car dealer invoice report<\/span><\/a> from Car Cost Canada can help you get your next car at an affordable price, with a lot more financing choices than just leasing!<\/span><\/p>\n

Transferring the Lease<\/b><\/p>\n

This is the simplest and most well-known way of breaking a lease ahead of time. You can opt to transfer it to a third party firm. A majority of leasing firms do allow for the lease to be transferred to another individual, however, there might be certain caveats. For example, you may be legally tied to the contract, meaning if the other individual defaults in paying on time, the onus falls on you to shoulder that liability.\u00a0<\/span><\/p>\n

Moreover, transfer fees might apply, some of which go as high as $500. Bear in mind that the downpayment on the lease and the vehicle’s mileage might also require you to sweeten the pot by reducing payment amounts for the new lessee, which can go as high as $5,000.\u00a0<\/span><\/p>\n

Trading or Selling the Car<\/b><\/p>\n

You can also purchase the car from the lease company whenever you like, resulting in an premature buyout. This is an excellent tactic to get out of your lease, especially if you already have a buyer for the vehicle.<\/span><\/p>\n

Make sure to undertake all dealings with the leasing firm and not the dealer. First things first, find out how much the buyout figure is. The leasing company owns the car, so if you go through a delaer you\u2019re unnecessarily adding a middle person into the mix.\u00a0<\/span><\/p>\n

The payoff figure may include an early end-of-lease fee which could range anywhere from $200 to $6,000.\u00a0<\/span><\/p>\n

Asking the Lease Company to Offset Payments<\/b><\/p>\n

If you\u2019re in a contemporary financial pickle and need a couple of months to regain your footing, it\u2019s better to communicate that with the lease company rather than directly opting to terminate the lease.\u00a0<\/span><\/p>\n

There are quite a few companies that are willing to waive payments for a period of time. In certain cases, they may choose to reduce your monthly payments or suspend them for a while. Naturally, you will have to make good on the balance at a future date, but it\u2019s still a great way to avoid penalties.\u00a0<\/span><\/p>\n

Looking to Buy a Cheaper Ride? Need More Financing Options<\/b><\/p>\n

Get a free dealer invoice report! A dealer report generates the price the dealer paid for the vehicle as opposed to the MSRP which is marked up, sometimes substantially. The report reveals the dealer price as well as the incentives you may be eligible for.\u00a0<\/span><\/p>\n

What will the report contain?<\/span><\/p>\n