Yes, you can return a leased car early, but it is almost always a costly and complex financial decision, not a simple "return." The process is formally called an early lease termination. Unless your lease contract includes a special clause (like a "early termination option" or "ETO"), you will be responsible for paying an early termination fee and all remaining lease payments, which can amount to thousands of dollars.
The primary reason for the high cost is that the leasing company (the lessor) calculated the car's value, known as its residual value, based on you driving it for the full lease term. Returning it early disrupts their financial model. Your first step should always be to review your lease agreement for the specific early termination clause.
Common Early Lease Termination Scenarios and Outcomes
| Scenario | Typical Process & Financial Implications |
|---|
| Standard Early Termination | You are liable for all remaining monthly payments plus a disposition fee and potentially other fees. The total can be shocking. |
| Lease Transfer (Lease Assumption) | You find someone to take over your lease. Services like Swapalease or LeaseTrader can help. This is often the most cost-effective way out, though you may need to pay a transfer fee. |
| Buying the Car and Selling It | You exercise the purchase option in your lease, buy the car from the lessor at the predetermined residual value, and then sell it privately. This only works if the car's market value is higher than the residual value. |
| Lease Pull-Ahead Program | Some manufacturers offer programs to terminate your lease early if you lease or buy another new car from them. This can waive the last few payments. |
| Returning After a Short Period | There is generally no "cooling-off" period or buyer's remorse law for auto leases after you've driven the car off the lot. |
Before making any decision, contact your leasing company directly to get an official payoff quote. This document will outline the exact dollar amount required to terminate the lease. Compare this figure against the costs of a lease transfer or a buy-and-sell strategy. If your goal is simply to get out of a car you no longer want, a lease assumption is frequently the most financially sensible path, as it transfers the financial obligation to a qualified new lessee.
