As auto leasing becomes more common, many drivers are asking "Can I break my auto lease?" and "How can I break my lease without penalties?"
Traditional methods of lease termination were very expensive and potentially damaging to one's credit. However, FreeLease has developed a simple and inexpensive way to break a lease before lease expiration. The most affordable option to break a auto lease early in Canada is to perform a automobile lease transfer. In this process, the lease obligation for the automobile is transferred from the current lessee to a new lessee, similar to subletting the vehicle. The new lessee will bear the financial responsibilities for the auto lease until it expires or if the lease is transferred again.
It is important to first check with your finance or lease company whether a lease takeover is permitted and if there are any restrictions such as that you may not be permitted a lease transfer with only a few months remaining on the lease.
If lease transfer is possible, advertise your lease on a automobile leasing classified service like FreeLease as it provides you a very targeted audience for your lease. Such site also provides a lot of information and details about automobile leasing to potential lease buyers so you do not have people calling for miscellaneous questions or encounter "tire-kickers" who know nothing about leasing and end up wasting your time.
Interested lease buyers will contact you and arrange to meet in order to view the vehicle and discuss lease takeover details. If the lease seller and buyer is geographically apart, the buyer may request a vehicle inspection. Long distance auto lease transfer does take place if the buyer finds an attractive lease and the savings are still greater than possible shipping costs.
You will notify the dealer and finance company once you have agreed on a lease transfer that you would like to break your lease. The buyer will submit to a credit check and both parties will sign a lease transfer agreement issued by the finance company. The process is complete once you have signed the documents and they're processed by the lease company.
This process to break your lease takes about 5 business days once the auto lease transfer has been confirmed by you and the new buyer.