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How to get out of your auto lease early

 

Buying a new BMW is exciting and signing a BMW lease is very easy. However, in today’s economy, car lease payments can be a burden and terminating the lease is often the only option. The leasing contract includes information on early termination, but financing and leasing companies prefer to lease to someone who can make regular payments until the end of the lease. Make sure to review your leasing contract, but it can sometimes be unclear as to what your options really are. Here are some ways to get out of your car lease early:

Lease Assumption

Websites such as LeaseTrader.com and Swapalease.com allow leaseholders to legally transfer their lease to someone else. Leaseholders list their car and payment details on the site and lease assumers search for listings that match their needs. A person might want to assume your lease because it allows them to acquire a late-model vehicle without having to pay a large down payment. Also, a family may need a larger car to transport their kids, while an older couple wants to get rid of theirs for a smaller one. Serge Stiberman, CEO of LeaseTrader.com, told Edmunds.com that allowing customers to transfer their leases makes good sense for BMW. “Companies like BMW realize that they can hold on to these customers by letting people get out of their lease,” he said on Edmunds.com. Lease assumption is becoming more popular and may be the best option for you.

Trade

If the value of your car is higher than the payoff amount, trading may be the best option for you to end your lease early. Take your car to your Phoenix BMW dealer and trade it for a new one with reduced monthly payments. The advantage of trading in your car is that it is very easy compared to the other options because you don’t have to deal with selling the car on your own.

Payoff

Another way to end your lease early is by simply paying off your car. Check your monthly bill for your payoff amount. Instead of sending your finance company your monthly lease payment, send them a check for the payoff amount instead. In most cases, however, the payoff amount is higher than the actual value of the car. But, once you pay it off, you become the owner or titleholder and no longer have to make monthly payments.

Return

The last option is to return your car to the dealership. If you take your car back, you are no longer responsible for the monthly lease payments. Keep in mind that you may have to pay the price difference between the payoff amount at the time of your return and the amount the leasing company can sell the vehicle for. Visit Chapman BMW for more information on return policies and leasing contracts.

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