Car Lease Contracts: Can You Change Cars or End Early?

Life has a funny way of throwing curveballs at us. While leases are an incredible way of enjoying a brand-new vehicle without the hefty upfront costs of buying outright, it is a long-term agreement, and as with all longer contracts, circumstances can change. Maybe your commute has drastically changed, or you’ve realised that the SUV you’ve leased is a bit much for squeezing into tight parking spaces in the city. Or, you could be struggling to keep up with your monthly payments due to unforeseen situations.

Whatever the reason, you might be asking yourself, “Can I change my lease car for another car?” Or perhaps you’re wondering about ending a car lease early. At cars2buy, we’re the UK’s number one aggregator of quality car leases from trusted leasers, so we know everything there is to know about this situation. Let’s explore your options, the potential costs and how to navigate this tricky situation.

How a Car Lease Contract Ends Normally

Leasing a car is straightforward when you stick to the plan. At the end of your contract, you have the option to hand the car back to the leasing company and either renew your lease with a fresh negotiation or start the exciting search for a brand-new lease car. To read more about this process, pop over to our guide on what to do at the end of your lease.

Of course, life doesn’t always stick to a schedule, and sometimes you’re left wondering if you can make changes mid-lease.

Can You Terminate a Lease Contract Early?

Ending a car lease early is possible, but it’s not always straightforward. Leasing companies structure contracts to discourage early termination, but they understand that circumstances change and that people may wish to terminate a lease because of financial reasons, a reduced need for the car or simply personal preferences. While you can terminate early, you’ll need to weigh the financial implications, which are detailed further down this guide.

How to Terminate Your Car Lease Contact Early

If you decide to end your car lease early, here are the general steps you can take, though it may be different for individual leasers:

1. Contact your leasing provider about your intention to end the lease, and they will explain the specific terms and conditions of your contract.
2. Understand the early termination fee included in your contract, which can include paying a termination penalty, administrative fees or the remaining balance of your lease payments.
3. Return the vehicle in a condition that meets the wear-and-tear guidelines in your contract.
4. Settle the fees which can be a lump sum based on your remaining payments, but some providers prorate fees to soften the blow.

Can You Change a Car Lease Contract?

If you are not ready to fully terminate your lease, there is a possibility that can change the terms of your car lease mid-way through. Unfortunately, most lease contracts don’t allow you to switch vehicles mid-term – once you’ve chosen your car, you’re into that specific make and model for the duration of your agreement. However, there are some adjustments that you can make, such as changing the mileage agreement to help avoid excess mileage charges on either end of the scale, or upgrading or renewing early, which may be possible if you’re planning to upgrade to a higher-value vehicle.

What are the Fees for an Early Car Lease Termination?

The costs of ending a car lease early vary depending on your provider and how far you’re into the agreement. Key fees may include:

• Early Termination Fee: A percentage of the remaining lease payments.
• Negative Equity: If the car’s market value is less than the lease’s residual value, you may need to cover the difference.
• Administrative Costs: Some companies charge fees for processing an early termination request.

It’s always worth comparing the fees against alternative options such as transferring your lease.

Alternatives to Terminating Your Car Lease

If ending a car lease early isn’t financially feasible, there are two alternatives at your disposal.

Some providers allow you to transfer your lease to someone else, who takes over the payments and responsibilities. This can be a win-win if you’re struggling but find someone eager to lease your car.

As a last resort, you can return the car to the provider in an act of repossession or voluntary surrender. While this affects your credit score, it’s better than defaulting entirely. Voluntary surrender allows you to negotiate terms and minimise damage.

Will Ending My Lease Affect My Credit Score?

Terminating a lease early does not automatically harm your credit score, but missed payments and repossession can have a negative impact. To protect your credit, communicate openly with your leasing company, ensure all payments are up to date before requesting termination and avoid opting for repossession unless absolutely necessary.

Lease Your Next Car with cars2buy

Ready to move on from your current car? Explore the exciting range of lease deals at cars2buy, the nation’s number-one choice for hassle-free leasing. We’ve brought the best the country has to offer in one place, so you can compare offers, customise your search and find the perfect vehicle to fit your needs and budget. Browse our curated collection of personal and business leases today, and you could be driving away in a brand-new model sooner than you think.