Can I return the leased vehicle early?

Yes, you can, but there could be large penalties for doing so. The penalty could be up to several thousand dollars. The actual charge will depend on when the lease is terminated. Please refer to your lease agreement for specifics on your lease. In general, the Early Termination Liability is calculated as follows:

  1. The Termination Fee (refer to your lease agreement to determine if this fee applies to your lease), plus

  2. An Early Termination Administrative Charge (refer to your lease agreement to determine if this fee applies to your lease) equal to the number of base monthly payments shown in the chart below which is based upon the percentage of months in the lease term which have expired.

  3. All unpaid amounts that are due or past due under this lease, plus

  4. Any official fees, taxes, and other charges related to early termination, plus

  5. All expenses related to recovering, obtaining, storing, preparing for sale and selling the vehicle, including reasonable attorney fees to the extent not prohibited by law, plus

  6. The Lease Balance (defined below), plus

  7. The Residual Value of the vehicle (refer to your lease agreement), minus

  8. The Realized Value of the vehicle (defined below)

Percentage of Months Expired in Lease Term

Number of Base Monthly Payments Due

0 - 25%


26 - 50%


51 - 75%


76 - 100%


Lease Balance - Equal to:

  1. The Base Monthly Payment times the number of monthly payments not yet due, minus

  2. Unearned Rent Charges included in the Base Monthly Payments not yet due calculated according to the Actuarial Method. The term "Actuarial Method" means the method of allocating Base Monthly Payments between: (i) the reduction of the Adjusted Capitalized Cost to the Residual Value over the lease term; and (ii) Rent Charges. Under this method, a Base Monthly Payment is applied first to the accumulated Rent Charges and any remainder is subtracted from, or any deficiency is added to, the balance of the Adjusted Capitalized Cost.

Realized Value - The Realized Value will be determined in one of the following ways:

  1. By written agreement between you and us.

  2. Within 10 days of early termination, you may obtain, at your own expense, from an independent third party agreeable to both you and us, a professional appraisal of the wholesale value of the vehicle which could be realized at sale. The appraised value shall then be used as the Realized Value.

  3. We determine the Realized Value in accordance with accepted practices in the automobile industry for determining the wholesale value of used vehicles by obtaining a wholesale cash bid for the purchase of the vehicle or by disposing of the vehicle in an otherwise commercially reasonable manner.

  4. If the vehicle is subject to a total loss due to collision, destruction or unknown theft as determined by us, the Realized Value will equal the amount of any proceeds we receive from your required insurance. If there are no insurance proceeds, the Realized Value will be zero.

Early Termination Example

If a 36 month lease on a vehicle is terminated early, after 17 lease payments have been made, the early termination liability would be calculated as follows (refer to your lease agreement to determine which fees apply for your lease).

Early Termination Liability Description of Charge

Amount of Charge

Termination Fee


+ Early Termination Administrative Charge (2 base rent payments of $475.79, as 47% of the months in the lease have expired; see Early Termination Liability Details below for calculation of this charge)


+ All Unpaid Amounts Due or Past Due


+ Official Fees, Taxes, and Other Charges Related to Early Termination


+ All Expenses Related to Recovering, Obtaining, Storing, Preparing for Sale and Selling The Vehicle


+ Lease Balance


+ Residual Value


− Realized Value


= Early Termination Liability