Yes, you can return a car before the lease is up, but it is rarely a simple or cost-effective process. Terminating a lease early typically involves significant financial penalties, often totaling thousands of dollars. The most common and straightforward method is a lease buyout, where you purchase the vehicle from the leasing company for a predetermined price and then sell it yourself. Alternatively, you might explore a lease transfer or lease assumption through a third-party service, where someone else takes over your lease payments.
The primary obstacle is the early termination fee. This fee is calculated to cover the remaining depreciation on the vehicle plus various administrative charges. Leasing companies use a lease payoff quote to determine this amount, which is almost always substantially higher than the car's current market value. This difference is your immediate financial loss.
Before making a decision, you must request a 10-day payoff quote from your leasing company. This document details the exact amount required to terminate the lease. Compare this figure to the car's current value on sites like Kelley Blue Book (KBB) or Edmunds. If the payoff is higher than the value—which it almost always is—you will be responsible for paying the difference out-of-pocket.
| Early Termination Method | Typical Cost Range | Key Considerations | Success Rate / Ease |
|---|
| Early Buyout & Sell | $2,000 - $7,000+ (Payoff vs. Market Value Gap) | Requires cash to cover the difference; involves selling a car privately. | Moderate (Depends on market conditions) |
| Lease Transfer/Assumption | $200 - $1,000 (Transfer fee + potential incentive) | Must find a credit-qualified lessee; not all leasing companies allow it. | Variable (Can take weeks/months) |
| Early Termination Fee | Equivalent to 4-8 remaining monthly payments | The simplest but most expensive direct route; no vehicle sale required. | High (Immediate, but costly) |
| Third-Party Buyout (e.g., Carvana) | Varies; often better than dealer buyout | Get online offers; may still have a negative equity situation. | Easy to get an offer |
| Voluntary Repossession | Severe credit damage + collection fees | Not a recommended option; will haunt your credit for years. | N/A (Last Resort) |
Your best course of action is to contact your leasing company directly to understand your specific contract's terms. Then, explore all options by getting real numbers—your payoff quote and the car's real-world value—before committing to a path.
