Car Leasing Secrets: Exiting Early
Entering a lease is much easier than getting out of it. All one has to do is go through all the paperwork, skip out on all the car leasing secrets, sign, then start paying the monthlies. Perhaps it's not so wise to forget the car leasing secrets, though. These include all sorts of hidden charges and insurance payments your local dealer won't tell you about. So how do you exit early so that you don't end up spending too much of your hard-earned money?
Anybody who has gone through lease arrangements that one of the car leasing secrets is to transfer a lease, which is actually a more cost-effective of getting out of a current lease. But there are two other ways that you might be able to get out of a lease in order to make things a little easier on your pocket.
Your first option is to actually sell the vehicle. Now, since a leased vehicle is not yours to begin with, you will have to buy it from the leasing company. Of course this means that you will have to spend some of your savings but you can make all the money back and probably more once you sell the car to somebody else. To buy out a lease contract you simply have to pay all the remaining monthly payments. Let's say that you have a two year lease contract and you have gone through 6 months of payments and have realized that this lease is not good for your financial situation in the future. All you have to do is pay the remaining 18 months as stated on your lease contract. To get the actual cost of the remaining balance that you have to pay, just multiply 18 with the amount of interest that you are paying each month. The result is what you will have to pay to actually own the car and be able to sell it. Now, making all that money back depends on your business and selling savvy but remember that you shouldn’t be surprised if you don’t make a profit. Bottom line is that you have finally ended your lease contract and saved yourself a whole lot of money for the long term.
The other alternative is to refinance your lease. Refinancing a lease is for those who cannot transfer a current lease because their leasing company doesn't allow it. Refinancing basically means extending your lease contract so that you make payments but at a lower rate and a longer term. What you are doing is stretching the depreciation which therefore lowers your monthly payment. Although this is not a way to exit a current lease, it certainly does a great job of making payments easier for you to manage. This is also very welcome by many car leasing companies. However, some dealers will not let you in on car leasing secrets such as this because they want you to keep paying the same rate as stated in the original agreement you have made with them. It's good business for them and as far as they are concerned, customers enjoy the experience of leasing for the reason that they can enjoy different cars every time a lease contract is renewed.
