What happens when i break my car lease?

Question

I live in texas, i cant afford my leased truck anymore, its loke 550.00 a month. thinking of giving it up voluntarily and geting a bike instead.... anything I should know before I decide?

Answer 1

You are liable under contract for all of the remaining payments. That is how leasing works and something you should have considered when you drove it off the lot and signed the papers. You can try sites like leasetrader and swapalease to get someone to take it from you. The only way you will be successful is by offering an incentive otherwise someone can just get their own new vehicle for the same money. Maybe if you post it for $490 a month someone will be inclined to take it as they are saving each month. If it was easy to walk away from leases the same person including me would be driving something new 4 times per year.

Answer 2

Unfortunately, you can't just break a car lease and walk away clean.

If you simply return the car to the lease company, it's considered a repossession and you will be sued for the difference between what you still owe on the lease and the wholesale auction price of the car, plus repo charges. And your credit will be seriously damaged for 7 years. And you'll have a hard time getting another loan or lease for another car or truck during that time.

You should try finding someone to take over the lease. It's easier and cheaper. However, some lease companies don't allow it. Here's an article that has more details:

http://www.leaseguide.com/Articles/termi...

Good luck.