The practice involves terminating an existing vehicle lease agreement by transferring the vehicle to a dealership that is different from the leasing company. This action effectively ends the lease contract before its originally scheduled conclusion. For example, an individual leasing a car from Company A might take the vehicle to Dealer B, who is not affiliated with Company A, to facilitate the lease termination and potentially acquire a new vehicle.
This option can provide flexibility for individuals whose circumstances have changed since entering the lease agreement. It allows a driver to potentially avoid excess mileage penalties, or exit a lease early if the vehicle no longer suits their needs. Furthermore, depending on market conditions and the vehicle’s residual value, this strategy can sometimes be financially advantageous. This strategy evolved as leasing became a more prevalent financing option and consumers sought ways to manage their lease obligations more effectively.
