It happens – you’ve finally found the perfect GMC SUV or truck, but you are already in a lease agreement, and you still have some time before the lease ends. You could wait out your lease, but you may never get a chance for this specific car at such a good price again. Lucky for you, GMC leases are convenient: you will be able to end your lease early and purchase the vehicle of your dreams. However, there are several things to keep in mind when ending a lease. We have compiled everything you should know about ending a lease, as well as several options to choose from.
What Are the Leasing Basics?
If you’re not looking to finance your next car, then leasing is likely going to be your best option. The difference between buying a car and agreeing to a lease agreement is that you will effectively be renting a car with a lease agreement; you will never officially own your vehicle but rather make regular payments in exchange for using it. This may sound bad at first, but there are real benefits to leasing a car instead of buying -otherwise, this option wouldn’t be as popular as it is.
For one, not owning your car can be a good thing. Unlike the housing market, where you expect your house to be more or less the same in a few years, the car market is always innovating and improving. That is to say that the car you choose to buy now will soon be outdated as new models hit the market. A lease will ensure that you always have the best vehicle available because you can easily switch vehicles when your lease ends. Buying a vehicle may make it difficult to change vehicles without incurring a financial loss.
On another note, leasing is potentially a good option if you are not in a good financial situation to buy a vehicle outright. Cars are becoming more expensive as the years go on, a natural progression based on the increase in technology and production expenses, and many people find it difficult to balance living expenses with owning a car. There are some benefits of owning your vehicle, but for many making simple monthly payments may be easier to factor into your budget.
What Can You Expect From a GMC Lease?
Where you lease depends on where you buy your vehicle from; leasing is ultimately long-term renting, so you are making payments directly to your provider. GMC dealers tend to have very good lease deals on a variety of their pickup and SUV models, allowing you to get a modern vehicle for low monthly payments. As you can see, GMC leases tend to be very convenient and beneficial compared to other leasing companies; however, there are a few things to keep in mind when ending a lease, GMC or not.
The Pros and Cons of Early Termination
So what if you want to end your lease a little earlier than expected? Perhaps you’re having difficulty making the payments, want a newer model now, or simply don’t need a car at the moment. Either way, it is possible to terminate your lease early without any worries about being able to lease in the future. Circumstances happen, and if you cannot make payments at the moment, your leasing company will understand if you need to end your lease. Nonetheless, there are a few pros and cons to consider before officially ending your lease.
Before you started your lease, you were likely asked to sign several documents, and a lease termination section was likely included in these agreements. Now, these agreements will vary from dealer to dealer, so you will want to be knowledgeable on your company’s policy for termination. Sometimes, there will be fees associated with terminating a lease early to make up for any hassle created by the sudden change in plans. However, there may not always be fees associated, so you will want to confirm this with your dealer.
What Other Options Are There?
Of course, there are other options if you don’t want to terminate your lease. These very well may be better options depending on your situation, given that terminating a lease may involve termination fees and other costs. One such option is a lease transfer. In short, this isn’t a termination of a lease but rather giving your lease to somebody else. You’re going to want to ask your leasing company about the details, but this can be a very easy way of bypassing any unexpected fees that you may incur.
There is, of course, a downside to lease transfers outside of legality issues: people. The only requirement for a lease transfer is that you have another person to take over your lease, but a lease is much like a loan from a bank in a lot of ways; it requires a specific person that qualifies to be applicable. You will need to make sure that your new lessee fills the requirements listed for your lease company, and while it usually isn’t the case, this may become an issue if your potential lessee is below the credit requirement. And this also requires that you have somebody that would be interested in taking over your specific lease; while companies may help find a person willing to take over your lease, this is not always the case.
Outside of lease transfers, there is one more option you could look to pursuit to end your lease early: a lease buyout. Unlike lease transfers which have potential legal issues, buyouts are solely an agreement between the lease company and the lessee. And for the most part, they will almost always be possible unless the lease company is completely against giving away the lease. Put simply, a lease buyout means you buy the car you are leasing.
This may seem counterintuitive if you are looking to get rid of the car you are leasing, but it can be your best option. Its benefits are much like the benefits of completely paying off a loan: once it’s gone, there are no more monthly payments or interest. Once you own the car, then you can turn around and sell it without worrying about any restrictions or limitations. While this method of ending a lease early requires getting an auto loan, it doesn’t require any lease negotiations and can be the simplest way out.
Of course, there is also a downside: you now own your vehicle. One of the benefits of owning a leased vehicle is that you can easily switch vehicles once the lease is over. Once you officially own your vehicle, it can be more difficult to get rid of without incurring a loss, especially if you are planning to trade it in at a dealership. Part of this is due to usage, but this can also be due to increases in technology: if your car is older, then it will be less valuable than newer models on the market. One of the whole advantages of having a lease is that you can switch to these more advanced models without having to incur a loss from selling your car.
What Should You Do?
GMC dealers are renowned for offering very good leases with remarkably low monthly payments. That said, if you’re looking to end your lease early, there are plenty of opportunities to do so with a lease from GMC: whether through the termination of a lease, a lease transfer, or a buyout. None of these are always more beneficial than the other, but with a little bit of research, you will be able to find the best option for your financial situation. For more information on GMC lease agreements, consider visiting a GMC dealership near you.
