How to get out of a car lease early
Job change, new baby, moving cities — leases don't care, but the payments keep coming. Here are the five real exits, roughly ordered from cheapest to most painful.
1. Transfer the lease (often one of the lower-cost options)
Someone else takes over your payments and the finance company releases you after approving them. The finance company may charge a transfer fee, and some sellers offer an incentive if their lease is less competitive. Ask for the exact eligibility rules, fees, and release terms before comparing this option with early termination.
2. Buy out the lease, then sell the car
Pay the buyout price on your statement, take ownership, and sell the car yourself. This wins when the car's market value is higher than the buyout — you pocket the difference. It loses when you're underwater, or once you factor in the GST/PST (or HST) your province charges on the buyout amount before you can resell.
3. Early termination through the finance company
The contract's official exit: you pay the remaining depreciation plus an early-termination charge. It's almost always the most expensive option on this list — get the exact payoff quote in writing before even considering it.
4. Manufacturer pull-ahead programs
Brands periodically waive your last few payments if you lease or finance your next car with them. Only worth it if you already wanted that brand's next vehicle — the "forgiven" payments are baked into the new deal.
5. What about just stopping payments? Don't.
A voluntary repossession still hits your credit as a repossession, the car gets auctioned, and you owe the shortfall plus fees anyway. It is the most expensive option disguised as the easiest one.
Which one is right for you?
It comes down to one number: your lease equity (market value minus buyout price). Positive equity points to a buyout-and-sell; negative equity usually makes a transfer the cheapest way out. Check yours first — it takes 30 seconds:
Decided on a transfer?
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