Yes, you can get rid of a leased car early, but it's rarely straightforward or free. The most common methods involve transferring the lease to someone else, buying out the lease and then selling the car, or negotiating a early return with the leasing company, often with significant financial penalties. The best option depends heavily on your lease agreement's specific terms, the car's current market value, and your financial situation.
The biggest hurdle is the early termination fee. This fee is calculated to cover the remaining lease payments, plus a disposition fee, and sometimes minus the car's predicted residual value (the purchase price set at the lease's start). If your car's current real-world value is lower than the residual value, you'll face negative equity, making termination very expensive.
A popular alternative is a lease transfer or "lease assumption," facilitated by sites like LeaseTrader or Swapalease. Here, you find a qualified individual to take over your payments. While you'll likely pay a transfer fee to the leasing company and the service, it can be far cheaper than a straight termination. You must get approval from the leasing company for the credit check on the new lessee.
Another strategy is a lease buyout. You contact the leasing company to buy the car outright for the predetermined residual value plus any fees. Once you own the car, you can immediately sell it to a dealership like CarMax, a online car buyer like Carvana, or through a private sale. This only makes financial sense if the car's market value is close to or higher than the buyout price; otherwise, you'll lose money on the sale.
The table below compares the primary options for getting out of a leased car early.
| Method | How It Works | Potential Costs & Considerations |
|---|
| Lease Transfer/Assumption | A credit-approved person takes over the remaining lease term. | Transfer fee ($300-$600); you may need to offer an incentive to attract a new lessee. |
| Early Buyout and Sell | You buy the car from the leasing company, then sell it. | Sales tax on the buyout; potential loss if market value is less than residual value. |
| Early Return/Termination | You return the car to the leasing company before term end. | Early termination fee (often all remaining payments + fees); negative equity costs. |
| Lease Pull-Ahead Program | Dealer offers to waive last few payments if you lease a new car. | You're committing to another lease; may not be the most financially optimal deal. |
Before taking any action, your first step should be to call your leasing company and request a 10-day payoff quote and a breakdown of all early termination costs. Then, get a free, instant cash offer from companies like CarMax and Carvana to understand your car's true market value. This data will show you the financial gap you need to overcome.
