Lease Guide
How to Get Out of a Car Lease Early
Life changes. Here are all your options for exiting a lease before it ends, ranked from cheapest to most convenient.
Step 1: Know Your Numbers
Before exploring options, gather this information from your leasing company:
Remaining Payments
How many months left on your lease?
Buyout Amount
Call your leasing company for exact number
Car's Market Value
Check KBB, Carvana, or CarMax offers
Step 2: Compare Your Options
Four ways to exit a lease early, ranked by typical cost:
Lease Transfer
Best for most people
$100-$500
2-4 weeks
Pros
✓ Someone else takes over payments
✓ Usually lowest cost option
✓ Clean break from lease
Cons
✗ Not all leases transferable
✗ You may remain liable
✗ Finding a taker takes effort
Buyout & Sell
Potentially profitable
Variable
1-2 weeks
Pros
✓ Could profit if car worth more
✓ Full control over process
✓ No early termination fee
Cons
✗ Requires capital upfront
✗ Risk if car worth less
✗ Handle sale yourself
Trade-In to Dealer
Most convenient
Rolled into new loan
Same day
Pros
✓ One-stop convenience
✓ Works even if underwater
✓ No private sale hassle
Cons
✗ Negative equity added to loan
✗ Dealer offers less
✗ Must get new vehicle
Early Termination
Last resort
$2,000-$10,000+
Immediate
Pros
✓ Quick and done
✓ No hassle finding buyer
✓ Immediate resolution
Cons
✗ Most expensive option
✗ All remaining payments due
✗ Additional fees on top
Lease Transfer (Recommended)
A lease transfer lets someone else take over your remaining payments. You're out, they get a short-term lease without committing to a full term.
How It Works
Check if allowed
List on Swapalease
Vet buyers
Pay transfer fee
Complete paperwork
Pro Tip: Sweeten the Deal
Offer to pay the transfer fee or cover a month of payments. A $500 incentive is often cheaper than months of unwanted payments.
Buyout & Sell
If your car is worth more than the buyout price, you can profit. This happens when used car values are high or when you've been easy on mileage.
Example: The Math
Watch Out: Third-Party Restrictions
Some manufacturers (Honda, Acura, BMW) restrict third-party buyouts. You may need to buy the car first, then sell—which could trigger sales tax.
Trade-In to Dealer
The easiest option if you're getting another vehicle. The dealer handles the lease payoff and rolls any negative equity into your new loan.
Best When...
- • You need a different vehicle anyway
- • You're underwater on the lease
- • You want zero hassle
- • Manufacturer offers trade-up incentives
Warning
If you owe $5,000 more than the car is worth and roll that into a new loan, you start the new car underwater. This can spiral if repeated.
Early Termination (Last Resort)
Returning the car to the leasing company is quick but expensive. You'll typically owe:
What You'll Pay
- • Remaining payments (or portion)
- • Early termination fee ($200-$500)
- • Excess mileage/wear charges
- • Disposition fee ($300-$500)
Only Consider If...
- • Very few payments left (<6 months)
- • Lease transfer isn't allowed
- • Significantly underwater + need out now
- • Financial hardship situation
Special Situations
Job Loss / Hardship
Some leasing companies have hardship programs. Call directly—you may qualify for payment deferral or reduced termination fees.
Moving Abroad
Often qualifies for early termination with reduced penalties. Bring documentation (visa, job offer) and ask about relocation policy.
Car Accident
If totaled, GAP insurance should cover the difference. For non-totaled, get repairs done properly—diminished value claims are complex.
Compare Lease vs. Buy
For your next vehicle, calculate whether leasing or buying makes more sense.