Auto Lease Refinancing ‐ Is it Possible?
If you are interested in refinancing a car lease, the refinance will work a bit differently than if you were to refinance a car loan. Refinancing a car lease simply means that you will terminate the current lease and start a new lease. Of course you would be starting this new lease for the same car that you are currently driving.
Understanding Auto Lease Refinancing
You cannot change the finance terms of your current car lease without ending it and starting a brand new lease. If you choose to refinance your leased car, you should know that you may end up paying a sizable penalty for ending the lease early. This is something that you should research and consider.
Review the original terms of your lease and then look at the fine print that tells you the penalty that you will have to pay as a result of ending the old lease and starting a new one on the same vehicle. Sure, your monthly payment will be lowered significantly once your refinance your lease, but you should weight the penalty cost of ending the lease with the monthly cost that you would have to pay to continue to lease the car. Furthermore, ask yourself if the overall refinance process will be more costly then if you retained the original lease.
Do a bit of comparative shopping when you think about refinancing your lease. Saving money on the new car lease will require that you do plenty of research. Talk to your original leasing company, and ask them to speak to you about the initial terms of the lease. Ask them what would happen if you refinanced your lease by ending the current lease and starting a new one on the same car. This should give you a bit of background on what you are dealing with regarding refinancing your lease with your initial lease holder.
You should also consider contacting a lease broker who can set you up with the right lease holder. You can do this by doing a bit of intense internet research. You can start by typing in the search terms “prime lease” or “car lease refinancing.” Such search terms should give you a good start on solid leads to companies that can better assist you with your car lease refinancing. You can also consider reviewing an eBook called “The Lease Guide” online for more assistance on how to secure auto lease refinancing.