Yes, you can get out of a cosigned car lease, but it is rarely a simple, penalty-free process. The most straightforward path is for the primary lessee to refinance or assume the lease solely in their own name, removing your obligation. If that's not possible, options like a lease transfer (where someone else takes over the lease) or a lease buyout (paying off the lease early) exist, but they often involve fees and require the lessor's approval. Simply removing your name without the lessor's consent is not an option, as you are legally bound for the entire lease term.
The core challenge is that as a cosigner, you have equal legal responsibility for the lease payments. The leasing company approved the application based on the combined creditworthiness of you and the primary lessee. They have no incentive to let you off the hook unless their risk is eliminated, typically by the primary lessee proving they can handle the payments alone or a new, qualified party stepping in.
| Method | How It Works | Potential Challenges & Costs |
|---|
| Lease Assumption/Transfer | A qualified third party is approved by the lessor to take over the remaining lease payments. | Transfer fees ($200-$500), credit checks required, may not be allowed by all leasing companies. |
| Lease Buyout | The primary lessee purchases the vehicle outright by paying the predetermined buyout price. | Requires significant cash or a new loan; the buyout price is often higher than the car's market value. |
| Refinancing | The primary lessee gets a new auto loan to pay off the lease, removing the cosigner. | Dependent on the primary lessee's solo creditworthiness; may have higher interest rates. |
| Early Termination | Returning the car early and paying all remaining payments and fees. | The most expensive option; involves early termination fees and potentially charges for excess mileage/wear. |
If the primary lessee stops paying, the leasing company will pursue both of you for the debt, and it will negatively impact both credit scores. The best approach is open communication with the primary lessee and the leasing company to explore the least damaging exit strategy. There is no universal solution, and the feasibility of each option depends entirely on the leasing company's policies.
