Do you want to stop your car rent business and quit paying the lease for the cars? In the event that your car rent business is not really working out the way you had wanted it to, you need to stop paying the lease for the cars. With a loss in car rent business you can’t really afford to pay the monthly lease amount.
However, leasing is not like renting that you just have to pay a monthly amount and your responsibility ends. Once you take a car on lease you are bound to the leasing company by thousands of dollars. This is because signing a lease contract involves being indebted to the leasing company for a particular time period and for a huge sum of money.
Methods to Stop Lease before Maturity Period
# Find other buyers
In order to stop paying the car lease, you will have to find someone else who can continue paying the lease. There are many websites that display lists of buyers and sellers of car leases. These websites are run by lease transfer companies. On such websites you can come across two lists. One list is for purchasers who want to buy a car on lease and other is for sellers who want to stop paying the lease they are already paying.
When you add your name and details on these websites, your car name, lease amount, lease term, monthly payment and mileage are shown. You can stay without worry because these sites do not disclose the personal or bank details of their clients. Whenever a buyer seeks a particular car, he or she might come across your car and buy it.
This way, you get a buyer, the buyer gets a car and you can stop paying the lease. To attract buyers you can attach cash incentive. Most buyers are attracted by such incentives. This process is often referred to as lease swap. Whoever agrees to pay the lease has the benefit of cost reduction in payment on the capital amount. As a result of this the monthly cost is decreased.
This is by far the most effective way to stop paying lease.
# Return the cars
One thing you can do is return the leasing company the cars. You need to approach the dealers before the contract gets over. But, since you are already under contractual agreement; will have to pay back thousands of dollars at a go. Otherwise, the leasing company might not allow it because then they would suffer a loss of those thousands of dollars you were supposed to pay. You might also have to pay the amount for extra wear and tear of the car.
In other words, even if you return the car to the dealer, you will have to keep paying and take all responsibility for the damage of the car.
# Lease another vehicle
You can end a lease early, if you enter into an agreement to lease another car from the dealers. However, before you opt for this option, you must assess how much equity is in the car. The amount of lease you have to pay depends on the depreciation, capitalized cost and residual value of the car.
In the event that the car is in a negative equity state, the money owed is most of the times transferred to the new lease. If this type of a situation occurs, chances are that the new monthly lease payment is going to be very high. The total amount of the lease would be an addition of the cost of the new car and principal from the lease of the old car.
So, it can be concluded that car lease can be stopped in different ways. However, if you want to stop an existing business and lease the cars you have, the best option is lease swapping. Not only do you walk away from the lease burden, but you can also start a new business with the saved money.
For further information, please visit leasequit.com.