While some dealers will take back your car before your lease is up – and even pay you extra for it – they don’t have to, experts said.
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Depending on the vehicle, some dealers will even pay you $2,000 to $5,000 in cash to end a lease early – and still not charge you for remaining payments, said George Iny, president of the Automobile Protection Association, a national pro-consumer advocacy group with offices in Toronto and Montreal.
“Almost any leased vehicle [in today’s market] will be worth more than its current payout value in the last year of a lease,” Iny said.
But there are exceptions. For instance, some high-end luxury vehicles depreciate faster than average and may be “tricky” for the dealer to resell because they’re not in high demand, Iny said.
But while some dealers may welcome your vehicle because they can make more money by reselling it, they’re not obligated to take it back early, said the Ontario Motor Vehicle Industry Council (OMVIC), which regulates dealers in Ontario.
“Usually, the leasing company is a separate business entity from the dealer … [but] in some cases, a consumer may be able to negotiate with a dealership who may be interested in purchasing the vehicle into the dealer’s inventory,” it said in an email statement. “A dealer is never obligated to take specific actions regarding an early lease termination, giving them the freedom to establish terms as they see fit.”
If you’re not happy with what your dealer is offering, you may be able to find another dealer who would offer you more, Iny said.
Your lease is usually with the carmaker, not the dealer you bought it from, Iny said, So, if you’re trying to break a lease early or get someone else to take it over, you’re free to take it back to other dealers. The dealer would buy out the lease for the value of the payout today.
“If you’re turning in a leased vehicle, either on time or early, [we can recommend] dealers in Montreal and Toronto who will make an honest current market value appraisal,” Iny said. “There should be no payout [expected from the consumer] in most cases.”