Overhaulin'

Want out of car lease to buy a new car - what is most efficient exit strategy?

I am leasing a 2006 Lexus ES330 with two years left and need to buy a mnivan due to a larger family. What is the most efficient way to exit the lease? Buyout the car and trade it in for a new car (would pay 7.375% sales tax on the buyout amount)? Assign the lease to a third-party and then buy the new car (subject to finding an equally credit-worth counterparty)? Keep sales tax implications in mind when providing advice.

Public Comments

1. There's rarely a good way to exit a lease when you still have two years to go. You very likely still owe much more than the car is worth, so even if you return it, you'll still owe additional money. You could consider finding a third party to take over your lease, but it has to be done with the approval of your lease company. Some lease companies don't allow it, and those who do often insist on keeping you responsible if the other party defaults. Companies such as Swapalease and LeaseTrader help find the third party, for a fee of course. This is the least expensive and easiest way, if it's OK with your lease company. See the following article for more details: http://www.leaseguide.com/Articles/terminate.htm