You can technically turn in your leased car at any time, but doing so before your lease term ends will almost always result in significant financial penalties. The most straightforward and cost-effective time is at the end of the lease term. If you need to exit early, your best options are to transfer the lease to another person or to buy out the lease and then sell the car, but both require careful financial calculation.
The primary obstacle to an early lease return is the early termination penalty. This fee is calculated by the leasing company to cover the remaining lease payments and the vehicle's predicted depreciation. You are essentially responsible for the difference between the car's current market value and the residual value stated in your contract. This gap can amount to thousands of dollars.
Before making any decision, you must take two critical steps:
- Review Your Lease Agreement: Locate the section on "Early Termination" or "Default." This will outline the specific formula or fees your leasing company uses.
- Request a Payoff Quote: Contact your leasing company directly and ask for a "10-day payoff quote" for an early termination. This official document gives you the exact dollar amount required to end the lease immediately.
Here are the most common scenarios for turning in a leased car:
| Scenario | Typical Timeline | Key Considerations & Potential Costs |
|---|
| Early Termination | Anytime before lease end | High early termination fees; often equals remaining payments plus a disposition fee and possibly other penalties. |
| Lease Transfer (Swap) | Anytime; requires lessor approval and a creditworthy buyer. | Third-party service fees (~$100-$500); you may need to offer an incentive; you are released from liability once transfer is complete. |
| Lease Buyout and Sell | Anytime; check for a purchase option in contract. | Pay the predetermined buyout price plus taxes/fees; then sell the car privately or to a dealer; profit/loss depends on current market value. |
| Wait for Lease Maturity | At the exact end of the lease term (e.g., 36 months). | Standard disposition fee (~$300-$500); charges for excess wear and tear and mileage over the allowance. |
| Return at Lease-End Window | Usually last 2-3 months of the lease term. | Some manufacturers (like Honda/Acura) offer a early turn-in program with waived last payments if you lease or buy another new car. |
If your goal is simply to get out of the payment, a lease transfer through a site like Swapalease or LeaseTrader is often the most financially sensible path, as it avoids the steep penalties of a direct termination.
