Navigating Car Lease Termination After a DUI Conviction: Your Options

DUIs are unfortunate. And if you're convicted, you could lose your license for several months or years. In this situation, individuals who lease an automobile may look for ways to get out of their car lease. This way, they don't waste money on a car payment month after month. Yet, getting out of a car lease isn't as simple as returning the vehicle to the dealership. Individuals who sign a lease agree to keep an automobile for a specified time frame. Failure to do so results in breach of contract and unless a person discovers a way to pay off the leasing company, he can wind up owing the company several thousand dollars.

Step 1

Return the car to the dealership and pay off the lease balance. If you lose your license after a DUI, you can opt to return the leased vehicle to the dealership. Since you didn't fulfill the contract, the leasing company will likely report this information to the credit bureaus, along with the remaining balance on the lease. To avoid this, agree to pay off the lease balance upon returning the car.

Step 2

Attempt to sell the car. Place a classified ad in the local newspaper and sell the leased vehicle. Before placing the ad, contact the leasing company and inquire about a payoff balance. Make sure the vehicle's sale price is enough to pay off the leasing company and any other fees (termination fees and mileage). After selling the vehicle, use the proceeds to pay off the lease balance.

Step 3

Ask someone to take over the payments. If you're dealing with a temporary license suspension, ask a trusted friend or relative to take over the payments. They'll drive the automobile, and they'll agree to make the monthly payments. Once your suspension concludes, you'll take back the car.

Step 4

Find someone to assume the lease. If you'll be without a license for an extended period, find someone to assume the lease. You'll need to contact the leasing company and see whether the person qualifies for the lease. If so, they'll have to pay a transfer fee.