Car Lease Damage Credit Report?

Dave explains to the listener how to get an early buy-out from the leasing company for his leased car.

QUESTION: A listener has a leased vehicle and wants to know how to get rid of it without destroying his credit.  Can he do that?

ANSWER: Yes.  Just contact the lease company and ask for the early buy-out.  The early buy-out will be less than the total of your payments and your residual value.  Then get the value of your car to figure out how much you’ll have to pay to get out of lease. 

For example, if your car is worth $25,000, but you owe $27,000, you’ll have to come up with $2,000 in order to give the buyer the title.  If you don’t have the full amount that you’re upside down, then you’ll have to get a small loan to cover that.