Can you return a leased car early?

Fill out the form and we will contact you

Car Lease in the UAE

If you are considering purchasing a new car or looking for ways to eliminate monthly lease payments, you may be interested in methods to terminate your leasing contract early.

Extended lease terms can sometimes feel endless. There are several options to explore if you are interested in ending your lease ahead of schedule.

In the company Takeauto in Dubai, leasing for customers is straightforward and advantageous. If you find yourself unable to make payments, you can simply return the car to us, and we won't charge you anything – no fines or penalties for late payments. Our contract has no hidden fees or charges, and we always prioritize the customer's interests, making it easy and cost-effective to work with us.

Content

What does early lease termination involve?

How to terminate your car lease early?

Motives for terminating a car lease ahead of schedule

Considerations for exiting a lease agreement early

What does early lease termination involve?

When you enter into a new car leasing contract, you agree to make a specified number of monthly payments. At the end of the leasing term, you commit to buying the car at its residual value.

Leasing agreements provide a clear description of the contract terms, including the payment duration and the associated monthly costs. If you reach a point where you no longer wish to make these payments, you may consider the option of an early buyout.

However, early lease termination is not always a straightforward procedure. Despite potential options for early termination, such as an early buyout, you cannot simply stop making your monthly payments.

How to terminate your car lease early?

Leasing an automobile in Dubai has ascended as a favored option for prospective vehicle ownership. Numerous merits are linked to leasing a car in Dubai:

Inquire about early lease termination options. Most car leasing companies provide early lease termination options. Some may allow you to purchase the leased vehicle early without a termination fee, although you might still need to cover remaining payments. Early lease termination is generally the costliest way to exit a car lease. It's advisable as a last resort if you can no longer afford the payments or meet the contract requirements.
Transfer your lease. If the early termination fees seem excessive, transferring your lease could be an alternative. Transfer requirements and eligibility vary by state and are contingent on your specific lease agreement. While the leasing company might charge a transfer fee, it is often less expensive than early termination. You can transfer your current lease to a family member, friend, or private buyer. Some online services can help you find a buyer for your leased car. The new lessee will undergo credit checks and down payment requirements, similar to when you initially leased the vehicle. After the lease transfer is complete, the new lessee assumes payment responsibility.
Buy out your lease and sell your car. Depending on your car's value, you may consider buying out your lease. This involves paying off the remaining monthly payments and any early termination fees in a lump sum. Many individuals opt for a lease buyout at the end of their term and then sell the car to recover their costs. Before committing to a lease buyout, assess the payoff amount and your car's market value to determine its feasibility.
Trade in your vehicle. Some dealerships permit you to trade in your car for a new lease. Your current monthly payment and transfer fees are typically integrated into the new car's payments. However, note that this choice often results in higher monthly car payments. It's typically only viable when you buy or lease your new car from the same dealership where you have the current car lease.

The majority of early lease termination options come with associated costs. These expenses can be relatively low, especially if you have a short remaining lease period. Nevertheless, terminating your lease early could potentially entail costs amounting to several thousand dollars. Regardless, these alternatives are more favorable than defaulting on your car payments.

Motives for terminating a car lease ahead of schedule

Here are several reasons why you might consider terminating your car lease agreement ahead of schedule:

Relocation to a new city or state. When you move to a different city or state, you might decide that taking your car with you is not practical. Transporting the vehicle can be expensive, and your current car may not be suitable for the new location's weather or driving conditions.
Changes in your financial situation. If you're facing financial difficulties, ending your lease could be a viable option. However, it's essential to evaluate the payoff amount and any associated lease transfer fees.
Military deployment. Joining the military and being stationed overseas may render your current vehicle unnecessary.
Upgrading or downsizing your vehicle. Changes in your family, such as having kids or sending a teen off to college, can alter your vehicle needs. If you plan to acquire a new or used car from the same dealership, you might be able to include the remaining lease payments in the new car's cost.

Hyundai sonata

FOR 24 MONTHS

Initial fee

Per month from:

Redemption payment:

1000

4.016

15.500

AED

AED MONTHLY

AED

GET A CAR

Considerations for exiting a lease agreement early

When contemplating ways to terminate your lease ahead of schedule, there are a few important factors to keep in mind, including:

Acquire comprehensive details about your lease agreement before ceasing payments. Understanding the specifics of your lease is crucial for making an informed decision. This involves determining the remaining balance, the car's residual value, and the charges associated with lease transfers.
Consider deferring the trade-in for a few months. Delaying the trade-in for a few months can be beneficial if your car's residual value is relatively low. It can reduce the amount you need to pay out of pocket to terminate the lease prematurely.
Inquire about hardship options. If you wish to exit your lease early due to financial challenges, your leasing company may offer hardship programs. For instance, some leasing companies may waive transfer fees or temporarily suspend payments for a specific duration. In Takeauto, if you can no longer make payments, you can simply return the car to us, and we won't charge you anything, no fines or penalties for late payments. This sets us apart favorably from other leasing companies in Dubai.
Thoroughly clean your leased vehicle before selling it. Well-maintained and clean cars generally command higher prices. Therefore, arranging an auto detailing service before listing your car can increase your chances of selling it at a better price.

Before finalizing the decision to end your lease early, it's essential to weigh all your alternatives and select the one that best aligns with your specific situation. As lease agreements can vary, it's crucial to opt for the option that suits your needs most effectively.

Turn to Takeauto to lease a car with a buyout option on favorable terms. We have no fines, hidden fees, or penalties for late payments; our contract is transparent and aimed at satisfying all customer needs.

Still have questions?

Fill out the feedback form and our manager will contact you