We like to offer complex financial help to our clients, not only guaranteed issue life insurance. And we encountered number of clients bothered with their car leasing. Leasing a car from a company such as ICL may be a sensible option if you are planning to purchase a car. Lease payments are usually smaller than the payments for a consumer loan. You may therefore be able to afford to lease a car which you don’t care to legally own right now. Maintenance of a leased car may become cheaper too, since you normally return your car back before it suffers major breakdowns. Leasing for a predetermined time span is effectively a cheap way to a long-term car rental. The financial obligations stemming from a lease agreement, however, may prove troublesome on occasion, especially when the economy is shaky.
The latter may happen when you, during the lease term, find it difficult or unfavourable to continue leasing the vehicle. If you attempt to withdraw from the lease agreement rapidly and return the car into the dealership, you may seriously taint your credit record. Future creditors will see this incident and may be turned off by your seeming riskiness; likely something all of us would want to avoid. So, are there any “clear” ways out of your car lease?
Well, one such way is to undertake an “early termination”, an option likely included in your contract. This option, however, may prove very costly to you, the lessee, because the dealer, lessor, will want you not only to pay up the owed amount, but also to compensate him or her for the lost business through various fees and penalties.
A better option might be selling your car privately, whereby you find an interested buyer, sign a sales contract with her or him, and then buy your car out from the dealer and sell it over immediately. This, as you probably understood, makes sense only if the difference between the buyout price and the sale price is smaller than the penalties you would face had you opted for early termination. In the best case, you may be able to make a small profit out of this transaction, but in the worst case, you will have fruitlessly exerted immense efforts and spent enormous amounts of time in your search for a buyer.
Fortunately though, there is a third option for you, which may well be the best one compared to the previous two. Somewhat akin to the selling option, you may attempt a “lease transfer” instead. This solution still involves finding someone who would be willing to take over the lease of your car (and the using of the car), but may be less of a pain in the eyes of the lessor, especially if the new lessee is more creditworthy than you are. If you manage to negotiate a lease transfer, the remaining rights and obligations from the lease agreement will be transferred to the new lessee with little or no additional costs arising for you.
Legally, lease transfer is probably more complicated than are any of the previous options. There are, however, online services which specialize in facilitating lease transfers and bring lessees together, making the search for a lease successor that much simpler. Be advised that some of those services charge a fee for successful transactions, but the overall value for you will most probably outweigh this fee, especially if you avoid other costly fines and penalties from your dealer.