Early Termination (Lease)

Early termination is to end a lease before the scheduled date of the contract for any reason other than certain situations listed in the contract. The lease termination can be either voluntary or involuntary. An example of a voluntary termination would be a lessee returning the vehicle to the dealer because they cannot afford the payment (default). An example of an involuntary termination would be if the vehicle was stolen or totaled in an accident. In the case of most early terminations, an early termination fee is charged by the leasing company. This fee would be in addition to other fees the lessee would be responsible for (such as wear and tear charges, excess mileage charges, etc.).