Yes, you can terminate a car lease early, but it is almost always a costly decision. The core issue is that a lease is a binding contract where you agree to make a set number of monthly payments. Ending early means breaking that contract, and the leasing company will charge you fees to cover their financial loss. You are responsible for the remaining payments, minus any potential interest the company might save, plus an early termination penalty that can run into thousands of dollars. The exact cost is determined by your lease payoff amount (or "buyout amount"), which you can request from the leasing company.
The most common method is a lease buyout, where you pay the leasing company the current buyout amount to own the car outright. However, this buyout price is often higher than the car's current market value, meaning you'll pay more than the car is worth. Other, less common options include transferring your lease to someone else through a lease swap service (if your contract allows it), or attempting to sell the car to a third party like a dealership, though the third party would also have to pay the often-inflated buyout price.
Before making any decision, your first step should always be to call your leasing company and request a 10-day payoff quote. This document details the exact amount needed to terminate the lease. Then, get a realistic valuation for your car from sources like Kelley Blue Book (KBB) or by getting offers from CarMax or Carvana. Comparing the payoff amount to the car's value will show you the immediate financial gap.
| Cost Factor | Typical Range | Description |
|---|
| Early Termination Fee | $200 - $500+ | A flat fee charged for breaking the lease contract. |
| Remaining Payments | Sum of all unpaid months | You are liable for the base payments left on the lease. |
| Disposition Fee | $300 - $500 | A fee charged if you do not buy the car at the end of the lease. |
| Negative Equity | Varies widely | The difference if your lease payoff is higher than the car's market value. |
Ultimately, the feasibility depends on the difference between your payoff quote and the car's actual cash value. For most people, the most financially sensible path is to see the lease through to its end.
