Restructuring or canceling an automobile lease
It seemed like a good idea when you signed your auto lease all those months ago. But now those monthly payments are busting your budget. Is there anything you can do?
Take a deep breath: There is life after a lease. But since you don't own the car, you have fewer options. And it will cost you. Be prepared to pay steep charges if you cancel it outright.
A better move is to restructure the lease so that your monthly payment is more manageable. Keep in mind that you are at the mercy of the leasing company; be honest and explain your financial situation in detail.
The letter below is a guide to changing your auto
lease. Personalize it by entering your specifics in the areas
You can print out this Web page and make your changes by hand or copy the body of the letter and paste it into a document where you can make your changes on your PC.
City, State, ZIP Code
Re: Monthly lease payment
Dear Sir or Madam:
I am writing this letter to discuss my current automobile
lease with name of leasing company.
I appreciate your efforts to work with me when I signed
the lease on my name of vehicle leased.
However, after I began making the monthly payments, I realized that
amount of monthly payment is too much
for my budget.
Describe in detail why you can
no longer afford this particular dollar amount. Be honest, but firm
in seeking specific relief. For example: "My payment of $325 a month
is not working out for me and I am requesting a new, lower payment
of $275. I am willing to extend the length of the lease to accomplish
this lower payment and would be happy to meet with you to discuss
the specifics of making this change to our agreement.
If you decide you would rather
return the vehicle and break the lease, tell the company: "I have
made a decision to turn in the vehicle I am currently leasing with
your company and I am willing to pay the necessary fees to make
this happen. Please send me an itemized statement as to what it
will cost me to terminate our agreement."
Thank you for your prompt attention to this request. I have been
very satisfied with the service I have received from name
of leasing company and look forward to working with you to
adjust or cancel our current lease
Your printed name
Your mailing address
your phone number
your fax number