You may think that once you take out a car lease, you’re stuck with your new car and its monthly fees no matter what. But you do have several options if you’re struggling to make your monthly payments, no longer need a vehicle or just fancy a change.
In this guide, we’ll walk you through how you can end your car lease early to help you decide which is the best and most cost-effective option for you.
Can You End A Car Lease Early?
Yes, it is possible to cancel your car lease early - you can terminate your agreement with your finance and leasing company. However, cancelling your lease contract early can result in expensive early termination charges, especially if you have a long time left on your contract.
How Much Does It Cost To End A Car Lease Early?
If you want to return your vehicle before the end of your contract date, you’ll be subject to a termination fee from the finance company. This is typically 50% of the remaining monthly lease payments. So if you’re paying £300 a month and have 18 months left on your contract, your early termination fee will be £2,700 to cancel your contract hire agreement.
However, the fee is not set and some finance companies will expect you to pay more or even all of your remaining monthly payments. To find out how much you’ll have to pay, check your car lease agreement for the full details or contact your lease company.
You may also be responsible for other fees when returning your vehicle early. Additional charges can include having to pay to return your vehicle and even storage costs for a lease car, if required.
Where Can I Find My Car Lease Agreement?
Your lease agreement will be sent to you when you take out your lease. You’ll have to sign the agreement before you take delivery of your new car. If you need a copy of your leasing agreement, please contact us and we can arrange for the document to be sent to you.
Your lease agreement will detail an early termination along with the fees you’ll incur.
Other Options To Terminate Your Car Lease
There are other options for ending your lease, however, the availability will depend on your finance company.
Transfer Your Lease To Another Person
On some occasions, you may be able to transfer your lease to another person. This will depend on the terms of your agreement set out in your lease agreement.
It isn’t an option for the majority of finance companies but is worth exploring if you’re struggling with your lease vehicle. You may have to find someone to take over the agreement or find the lease transfer process.
Repossession Or Voluntary Surrender
If you can’t make your monthly payment, your final option is to voluntarily surrender the vehicle. This is like repossession but has fewer penalties. This should be a last resort and avoided at all costs when possible.
Will Ending My Lease Affect My Credit Score?
Ending a lease can affect your credit history, especially if you’re unable to make your monthly payments.
If you are struggling to lease, contact us before missing a payment. We can discuss your options and try to come up with the best solution for you without damaging your credit.
Find out more about what credit score you need to lease a car in our expert guide.
How To Terminate A Car Lease Early
First off, you should contact your leasing provider and we’ll be able to discuss cancelling your car lease with the finance provider. We’ll be able to get you a no-obligation quote and negotiate the lowest price.
During this time and once you receive your quote, you can decide which is the best option for you. If you want to proceed with the cancellation, we can arrange this for you with the finance company.
If your monthly income drops, we can also discuss negotiating and changing the contract particulars to lower your monthly costs.
If you’re unhappy with your new car, we offer a 30-day return on your leasing agreement. If you change your mind within 30 days of delivery of your lease, as long as the mileage is under 50 miles, we will collect the vehicle from you free of charge.
Head to our guide for more information on what happens at the end of your car lease, or how personal contract hire compares to personal contract purchase.
