 Getting
out of an auto lease
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 Dear
Dr. Don,
How can I break an auto lease without being taken to the cleaners?
I need to purchase a larger vehicle but have two more years on my
lease.
-- Dee Do-over
 Dear
Dee,
There are a couple of options available to you in getting out of
your lease. The first is to sell your car out of the lease and use
the proceeds to pay off the principal balance on the lease. Not
all lease agreements allow you to do this, but if your contract
does, that's one possibility. I did this the one time I leased a
vehicle, but I did it toward the end of the lease term.
For this to work without you being taken to the cleaners,
you have to be able to sell your car for more than the outstanding
principal balance on the lease. Low miles, low residual value, excellent
condition and a Carfax report with no negatives all help. Estimating
the car's value using Edmunds
or Kelley Blue Book
will help you evaluate this option, along with talking to the lease
finance firm about the lease contract and the payoff balance.
You can also take a look at the services that try
to match lessees with individuals who are interested in taking over
their leases. The Web site I'm most familiar with is Swapalease.com,
but there's also LeaseTrader.com
and undoubtedly a few others, too. There are costs associated with
this process, and once again your lease agreement has to allow a
lease transfer, but it is something for you to consider in your
quest to end your lease agreement.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "financing
a home," "saving & investing" or "money."
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