EARLY LEASE RETURN

Yes, you can, but there could be large penalties for doing so. The penalty could be up to several thousand dollars. The actual charge (known as the Early Termination Liability) will depend on when the lease is terminated.

Lease agreements differ, and the examples and explanations on this page are provided for illustration only. Please refer to your lease agreement for the specific terms and fees that apply to your lease.

In general, the Early Termination Liability is calculated as follows:

1. The Termination Fee (as defined in your lease agreement), plus
   
   
2. An Early Termination Administrative Charge (if applicable) equal to the number of base
   monthly payments shown in the chart below, plus
   
   
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 (calculated as described below), plus
   
   
7. The Residual Value of the vehicle (as defined in your lease agreement), minus
   
   
8. The Realized Value of the vehicle (as determined by one of the methods listed below)

The Early Termination Administrative Charge is based on the percentage of months expired in the lease term, according to the following schedule:

The Lease Balance is calculated as follows:

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" refers to 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 added to, the balance of the Adjusted Capitalized Cost.

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 that 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.

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.