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How to break a car lease - Steps you should know

How to break a car lease – Steps you should know

In this article you will learn about how to break a car lease. Just follow the steps mentioned in this article, and hopefully you will get out of the car lease agreement without paying costly penalties to the leasing company.

In this article, we will also explain: what is the difference between a car lease and a car obtained through a bank loan.

There are many reasons as to why people want to break the car lease, and why the process is so challenging.

What is car leasing

Car leasing is all about renting a new car for a fixed number of years, which is to be driven for a fixed mileage. There is a down payment and a monthly lease payment. It’s like getting a loan for a car, except, at the end of the time period, you will not own the car. You will have to return the car to the leasing company.

Why is it difficult to get out of leasing a car

Reasons to break the lease

Consider this situation: You have got a brand-new car on lease. After a few months of rough handling, repairs, denting, replacing parts and constant cleaning, it does not look so new anymore. You got it for a period of four years, and you have used it for only one year. The interior has been stained and cleaned many times.

Suddenly, you are in a situation where, you can’t afford these monthly lease payments anymore. The car is badly damaged, and needs expensive repairs, that you cannot afford.

Now, the big question is: how to break a car lease.

Maybe the car is in perfect shape, but you just do not want it anymore. You want to get your own car, and do not want to waste money – on monthly payments – for just renting a car.

The leasing company’s view

The leasing company provided you a new car on rent for a fixed period. They had calculated the amount they would get from you to cover the depreciation value of the car. It is not easy for them to lease this car to a third party so easily now.

You are in a problem now. It is you, who has to pay the penalty for returning in your car early. The penalty will be calculated after through checking of the car to assess the condition of all the machinery inside the car. This check-up alone will cost an amount. Then it’s their financial record that has to be changed. Their accounts receivable predictions related to your monthly payments will have to be reevaluated.

Leasing companies consider it a bad loss, and they do their best to make you pay for it. It’s not easy getting out of this deal without paying a good amount of money. They make it almost impossible how to break a car lease with them.

How to break a car lease in three steps

Step one

Study the lease agreement thoroughly for a lease assumption or transfer procedure. Usually car lease is transferable, in most cases. Usually there is no fee for transferring a lease. Some of the leasing companies will still hold you partially responsible for the car in case the assignee defaults. And some companies do not allow any type of transfer of responsibility.

Step two

You might have to pay around $900 to $1,000 for a lease transfer deal. Also, you will have to pay for advertisements to get customers for the car. And to make the deal really attractive, you must agree to pay a portion of the monthly lease payment for a few months. Now that’s not bad if you have a few months left to finish the lease.

Step three

Once you have decided to break a car lease, and have the capital ready to carry out a transfer to any other customer, start advertising.

You must learn all about internet advertising. If you have your own site, advertise car lease deal on it. Go to sites that advertise such deals. Get the car in the best shape. You must clearly state how much you are willing to pay every month too. And most importantly, you must make up the best excuse for giving up a leased car.


Now you know that it is possible to break a car lease agreement. Taking a calculated and conscious approach will save you a lot of money in the long run. You may face some challenges in the beginning, but it’s worth it in the end.

If you successfully manage to break a car lease, you can get rid of the monthly lease payments.

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