Escaping a crippling lease can benefit someone looking for a short-term use vehicle
Lease agreements are engineered to make dealerships and automakers money. Some leased vehicles come with terms, penalties and payments that are so harsh one must exit the agreement to save financial ruin or consumer proposal. Before getting too down if you are currently stuck in a lease, we will help you to look at your options and make the best choice to move forward.
Can you get out of an auto lease?
Majority of lease agreements leave the lessee a way out. Some lease agreements have penalties and fees to port the lease to a new person but it is rare that a lease needs to be fulfilled by the same person before the agreement terminates. When signing a lease agreement, it is paramount that the document is reviewed entirely this will usually turn most people off. If, however, a lease suits your needs, best practice would be leave yourself some breathing room if you want out of it.
What happens if you walk away from a car lease?
Walking away from a car lease is probably the worst choice to deal with unfavourable terms in a lease agreement. Often, a repossession order for the vehicle will be issued and a lessor approved bailiff will be looking to collect the vehicle. The lessee is responsible for all vehicle recovery costs, plus penalties indicated in the lease. This is on top of all the dishonoured payments and fees the lease agreement stipulates. In some provinces, legal action can be taken to collect this money and often the lessee must claim bankruptcy to escape court ordered garnishments.
What if I want to end my car lease early?
There are options for anyone in this position, before getting overwhelmed by missed payments and repo-men calling, start planning to end the lease well before payments cannot be made. One missed payment will damage your credit rating and three will prompt repossession. There are services available in Canada which connect those searching for leased vehicles to those who want out. Leasebusters, is a matchmaker for people searching for reduced term vehicle leases. Though, it is difficult to find a vehicle with less than two years of term remaining, they have the occasional vehicle that is less than one year remaining. Regardless, they can connect you with more potential people to take over the lease than online marketplaces.
Craigslist, Kijiji and UsedEverywhere are also options to find someone to take over your lease, please plan accordingly as this process can take time even before the paperwork process to turn your keys over to someone else.
How do you take over a car lease in Canada?
A lease agreement will almost always have a takeover clause with terms and fees to accomplish this. Contacting your lessor is always the best way to identify your options but remember that services like Leasebusters may be able to negotiate more favourable terms and it could be advantageous to contact them as well. Dealing directly with your dealer, automaker or lessor can cause a lot of stress and with payments looming, it is often best to seek assistance.
Are lease takeovers worth it?
To stave off creditors, financial ruin or bankruptcy a lease takeover is almost always a better choice, despite the losses. For someone searching for a deal or shorter-term lease they are also beneficial. In all cases, those who are flexible about the vehicle they drive and the length of time they need a vehicle, a lease takeover will help them to bank savings. When compared to a 30-180 day rental car, a lease takeover presents a lot more value even if the term is one or two years.