How Soon Can I Return My Leased Car?
Once you've finalized your car lease agreement, you might be eager to return the car and seek a replacement. However, there are certain terms and conditions that you must adhere to before doing so. Understanding the intricacies of the lease agreement and the potential fees can be crucial in making an informed decision.
Understanding Lease Tenure and Lock-in Period
When you embark on a car lease, two essential terms you need to comprehend are the lease tenure and the lock-in period. The tenure, typically ranging from 24 to 60 months, represents the total duration of your lease agreement. On the other hand, the lock-in period is a fixed duration that you must fulfill before being able to return the car without incurring additional fees.
Consequences of Early Return
If you decide to return the car before the end of the lock-in period, you will be required to pay pre-closure charges. This calculation is based on the difference in subscription fees between the original lock-in period and the current duration of the lease. For instance, if you lease a car for 24 months and plan to return it after 11 months (with a 12-month lock-in), the fee would be calculated as follows:
Subscription Fee for 12 months lock-in period - Rs. 22,000
Subscription Fee for 24 months - Rs. 20,000
Pre-closure charges (22,000 * 12) - (20,000 * 11) 22,000 Rs. 66,000
Understanding these terms and conditions is crucial to avoid unexpected costs when returning your leased car.
Leasing with Flexibility
Responsive leasing platforms like Quiklyz provide you with the flexibility to choose your lease term and the miles you plan to drive. This allows you to tailor the lease to your specific needs and preferences. However, it is essential to conduct your own research and ensure that you make an informed decision before finalizing any lease agreement.
Pre-Closure Charges and Additional Costs
Returning your leased car before the lock-in period ends often involves paying pre-closure charges. These fees are calculated based on the remaining lease period and can be substantial. For example, if you decide to return the car after 11 months of a 24-month lease, you will need to pay the difference in subscription fees, plus any additional return fees.
Lingering Effects of the Chip Shortage
Recent global events, such as the semiconductor chip shortage, have led to a shortage in new car production. This has inadvertently increased the value of used cars, including those under lease. If your lease has a predetermined 'buy-out' price, it is possible that your car's current market value exceeds the buy-out price, making it economically viable to return the car early.
It is crucial to note that once the chip shortage is overcome, the momentary high value of your leased car will drop back to a more normal level. Therefore, the window of opportunity for returning your car early is limited, and it is advisable to make this decision within the current timeframe.
In conclusion, understanding your lease terms and the associated fees is important when considering returning a leased car. Whether you choose to return the car early or not, always conduct thorough research and consider all factors involved in making an informed decision.