Get Out of a Car Lease in Winnipeg
A lease is a popular form of vehicle financing that allows drivers to 'rent' a car from a dealership for a set amount of money, a set amount of time, and a set amount of kilometres. In some cases, vehicle leases work out well for drivers, especially those that do not drive a lot, that do not want to worry about vehicle maintenance, and that want to drive the latest and greatest model every few years.
However, many people find out halfway through that leasing is just not for them. Perhaps they drive too many miles, or they need a vehicle that they actually own outright. Perhaps they are moving away from the dealership where they originally leased. Whatever the reason, there are always drivers looking to get out of a car lease in Winnipeg or across Canada. Here are a few ways that can happen.
Transfer the Lease
There are several third-party services that allow drivers to transfer leases to a new owner. Most leasing companies allow this, but drivers should be aware that even after transfer, they will still be listed on the contract and liable if the new owner stops making payments. In addition, drivers may even have to offer a financial incentive that lowers the monthly payments for the new lessee, and this could cost thousands of dollars.
Return the Vehicle and Pay Penalties
Drivers always have the option of returning a leased vehicle to the leasing company and paying the penalties associated with breaking the lease early. Drivers that do this will end up paying a large termination fee, as well as the remaining depreciation of the vehicle. However, this is one of the worst possible ways to get out of a lease. It involves drivers paying thousands of dollars to get rid of a vehicle.
Ask the Leasing Company for Help
For drivers suffering from financial difficulties, one possibility is to contact the leasing company. They may agree to lower the monthly payment or temporarily suspend it while the driver gets back on their feet. However, this does not help drivers get out of a lease early.
Default on the Payment
Defaulting on a lease payment is never recommended for lessees. Drivers will suffer serious consequences, such as a ruined credit score and lawsuits from the leasing company, for defaulting on the lease. Unless drivers really have no money left to their name, the lease payment should continued to be paid.
Sell or Trade the Vehicle
Selling or trading in a leased vehicle is a great choice, and River City Ford can help drivers who no longer want their vehicles controlled by a lease. Drivers that want to get out of their lease but do not want to pay penalties, do not want to default on the loan, and do not want to go through the hassle of selling the car themselves should let the lease experts at River City Ford help get you out of your existing lease.