How to return a car in lease without being penalized?
How to return a car in the lease without being penalized? The pandemic has changed the financial landscape for many people. In Florida, we have gone from being a thriving economy, with 2.8% unemployment, to finding ourselves with half of the businesses closed and the main industries of the state, tourism, cruise ships, and aviation, on the brink of ruin.
Under the new circumstances, many families have had to cut back on spending. Those who have their cars in the lease and their financial situation has changed for the worse think to return them, but they feel gripped by the great penalties associated with that action.
Most Lease contracts penalize the customer if he returns the car before the rental is due. Therefore, before canceling the contract, it is advisable to study the terms of the lease policy.
Another implication that sometimes we do not take into account, but that also matters, is that the return can affect the customer’s credit. Denotes that you are unable to continue paying.
Automobiles, unlike other investments, suffer a great depreciation. You leased a new vehicle, with a certain value that you now want to return, and its current market price may be 30 or 40% lower. Therefore, the dealer is not interested in taking it before the agreed term is reached, since he loses money. That is why it is protected with penalties and different cancellation rates.
The solution may be to pass your lease on to someone else. It is around the business. If you have two or three years of a monthly payment left that you cannot afford, chances are there is someone who can afford to pay for your car. You will wonder and what advantages this person has. The great advantage is that you would not have to pay a downpayment. And the other is that the lease time may be shorter since you have consumed one or two years of that lease.
Before you rush off to find that person, read their contract. The latter must explicitly authorize this sublease. Some policies charge a fee for this operation that is generally much lower than the penalties you would pay to return the car.