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What is a lease break fee?
I leased a sports car around a year ago, but I recently took a job that requires me to travel. I’d like to get something more fuel efficient, but my friend said I’d probably have to pay a pretty significant lease break fee. What is a lease break fee? Do I need to worry about it?
Cassandra Hamilton · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
When you want to change the type of car you’re driving, it’s easier to
lease your vehicle
instead of buying. After all, that’s the appeal of leasing
—you don’t have to make a huge commitment. Your friend is right though—a lease break fee is the fee you’ll pay to end your lease early, and it can be expensive.You might need to end your lease early if:
- your needs change.
- your vehicle is lost or stolen.
- you’re moving away.
Since you’re just looking for a different type of vehicle, it might be better to
transfer your lease
instead of breaking your lease. The lease break fee is laid out in the lease you sign, and it often means you have to pay the difference between the calculated value of the car and the balance remaining on the lease. This can be thousands of dollars!We hope our suggestion of transferring your lease will save you some money.
Jerry
is all about saving money when it comes to cars—especially on car insurance. Jerry pulls the best and most affordable quotes from top insurance companies for you to browse, and helps you switch over after you’ve made your choice. You could save an average of $887 per year!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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