There are some car lessees that may decide to get out of the car lease or to end their car lease for a lot of reasons. Some of these reasons are financial problems, high payments, unemployment, or simply because you don’t like to drive anymore the car that you leased. It’s indeed possible for any lessee to terminate car lease before its maturity date.
Most car leasing Singapore companies allot several paragraphs of legal jargon dedicated to an explanation of the options if ever you wish to do what is known as early termination. Based on any contract, the lessee is allowed to terminate the car lease anytime during the entire term of the lease. It is however not something that leasing companies are happy about. They would like the lessee to complete the payments until the end of the lease.
Choice for Car Leasing in Singapore
Sell the Car
Selling the leased car means that you have to make it your own first. That means you have payoff the entire remaining cost for the car and look for a buyer who’s interested to buy it. It’s not really a wise decision since you would have to sell the car in a much lesser amount than the payoff amount.
With voluntary return, you simply return the leased car to the dealership. Since you’re not keeping it, you’re not required to pay off the car. However, you’re responsible for paying the price difference between the amount of the car the company can sell it with and the payoff amount of the car upon return.
Pay Off the Car
By paying off the leased car, you will end the lease early for you; and you become the owner or title holder of the vehicle. Majority of companies list the payoff amount found on the monthly bill and you may opt to pay the payoff amount instead of just the monthly lease payment.
Trade In the Car
You also have the option to trade in the car and then lease and finance a brand-new car. This is good if your car has a “positive equity.”