If you are leasing a Chrysler, Jeep or Dodge product--cars built by the Chrysler Group LLC--you may have given some consideration to terminating your lease early. Perhaps a newer model strikes your fancy or maybe a change in family income means you no longer have use for the car. Whatever your reasons may be, there are several options for you to explore and decisions to weigh.
Your Lease Agreement
The Chrysler lease agreement you signed is a legally binding document requiring that both parties uphold their part of the deal. The lessor (Chrysler or the leasing company) must follow through on whatever agreements they have made concerning service and warranties while the lessee (that would be you) is expected to make timely monthly payments and follow return instructions when the lease expires. That agreement will also outline early termination options, if any, and how you or the lessor can legally terminate the lease early.
Transfer Your Lease
If you cannot legally terminate your lease or if the penalties to break your lease agreement are too severe, you may be allowed to assign your lease to a third party. This means that you are transferring your rights of lessee to someone else who agrees to take over your payments. Please note that the lessor may retain the right to reject a new lessee especially if they are not deemed creditworthy. Tip: Lease transferring companies have emerged to help consumers get out of their Chrysler leases and other automotive leases.
Some car dealers will be all too happy to allow you to break your lease if you agree to purchase or lease a new car. For example, if you plan on buying a new Chrysler, Jeep or Dodge model you may be able to turn in your leased Chrysler, Jeep or Dodge product for a new one. Tip: Make certain that your lease obligation ends when you buy the new vehicle. Fees and other charges for early termination should be explained to you by the dealer's lending officer.
In some cases, financially strapped consumers have been able to successfully abrogate their lease agreement with the help of their attorney through personal bankruptcy court. At this point your credit is ruined, therefore returning your leased Chrysler vehicle may not have much further impact on your credit rating.
Keep in mind that you're obligated to make lease payments until your lease agreement has been completed, terminated or successfully converted into a new agreement. Be careful when choosing a lease trade or swap business to handle your termination because your obligation to the lessee may not end there.
- Lease Guide
- Escaping a car lease gets easier; Bankrate.com
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- Federal Reserve. "Keys to Vehicle Leasing: End-of-Lease Costs: Closed-End Leases." Accessed April 12, 2020.
Charles Green is a freelance writer in North Carolina who has been writing since 1992 and freelancing since 2002. His work appears in "435 South Magazine," "Wisconsin Golfer" and for various websites. Green earned a Bacheler of Science in business administration from Ramapo College of New Jersey.