Blog

Driving a new car is exciting, but life is unpredictable. Maybe your family is growing, your commute has changed, or you simply want a different vehicle. If you’re currently leasing but feeling stuck in your contract, you aren’t alone. Many drivers wonder if they can terminate their lease before the term is up without facing massive penalties. A car lease is essentially a long-term rental agreement where you pay for the depreciation of the vehicle over a set period—usually 24 to 36 months. While these contracts are designed to be binding, they aren’t ironclad cages. There are legitimate, strategic ways to exit a lease early. Whether you're looking to upgrade to the latest Volkswagen Atlas or simply need to downsize, understanding your exit strategy can save you money and headaches. Here are the three most effective ways to get out of a car lease early. 1. Transfer Your Lease (Lease Assumption) One of the most popular ways to exit a lease without penalties is to transfer it to someone else. This process, known as a lease assumption, involves finding another driver who is willing to take over your remaining payments and the vehicle itself. This option is often a win-win. You get to walk away from the financial obligation, and the new driver gets a short-term lease without having to put down a large down payment. There are dedicated third-party websites that connect lease sellers with buyers, making the search easier. However, there are a few caveats. First, you must check your contract or contact your finance company to ensure lease transfers are permitted. Second, the new lessee must meet the credit requirements of the leasing company. Once the transfer is approved and the paperwork is signed, you are typically released from further liability. 2. Buy Out the Lease If you love the car but hate the lease terms (or perhaps you’ve gone way over your mileage limit), buying out the lease might be your best move. Most lease agreements include a "payoff amount" or "buyout price." This is the sum of the remaining lease payments plus the vehicle’s residual value (what the car is estimated to be worth at the end of the lease). You can choose to buy the car outright with cash or finance it with a car loan. Once you own the vehicle, the lease restrictions regarding mileage and wear and tear no longer apply. You are then free to keep driving the car for as long as you like or sell it privately whenever you choose. This strategy is particularly smart if the current market value of your car is higher than the buyout price listed in your contract—a situation that has become surprisingly common in recent years due to vehicle shortages. 3. Trade In Your Leased Vehicle For many drivers, this is the simplest and most convenient option. You can trade in your leased vehicle at a dealership, just as you would if you owned the car. Speedcraft Volkswagen can appraise your current vehicle and determine its trade-in value. Here is how the math works: The dealer pays off the remaining balance of your lease. If your car’s trade-in value is higher than the buyout price, you have positive equity. This equity can then be applied as a down payment toward your next new or used vehicle. For example, if your lease buyout is $20,000 but your car is worth $22,000 as a trade-in, you have $2,000 to put toward a new Volkswagen Jetta or Tiguan. Even if you have negative equity (you owe more than the car is worth), a dealership can often roll that difference into your new financing plan, allowing you to drive away in a car that better suits your current needs. Ready to Make a Change? Ending a car lease early doesn't have to be a stressful financial burden. Whether you choose to transfer the lease, buy out the vehicle, or trade it in for something new, you have options. The key is understanding the current value of your vehicle versus what you owe. If you are ready to explore your options, the team at Speedcraft Volkswagen is here to help. We can assess your current lease situation and guide you toward the best solution for your budget and lifestyle. Visit us in Wakefield, RI, or check out our inventory online to see what you could be driving next.

A Permanent Change of Station (PCS) comes with its fair share of challenges. Among the countless decisions you need to make, one question might stand out: What should you do with your current Volkswagen lease or loan? At Speedcraft Volkswagen, we proudly support the military community in Wakefield and beyond, and we’re here to provide clear, actionable steps to help you manage this part of your transition. When is an Auto Lease Eligible for Cancellation? Thanks to the Servicemembers Civil Relief Act (SCRA), you may be able to cancel your lease under certain conditions. However, there are restrictions to consider: The SCRA applies only if you’re called to active duty and moving overseas, or to Alaska or Hawaii, for at least 180 days. If your PCS is within the Continental United States (CONUS), the provisions of the SCRA do not apply to your auto lease. How to Cancel Your Volkswagen Lease If you meet the SCRA qualifications, here’s how to cancel your lease: Contact Your Financing Department: Reach out to the company servicing your lease (this could be Volkswagen Credit, a bank, or a credit union). Prepare the Required Documentation: A written letter explaining your lease termination request, including the date the lease should end. A copy of your official military orders. Submit Your Documents: Submit your documentation to the appropriate party as instructed by your finance department. Need guidance? Our Speedcraft Volkswagen team is here to assist you throughout the process. Can I Cancel My Financing Plan? Unfortunately, financing agreements are not covered under the SCRA. You’ll need to continue making payments as scheduled or explore these options: Find a Buyer for your vehicle to transfer the financial obligation. Transport Your Volkswagen to your new station. While this involves costs, it might be worth it if you’ll be stationed there long-term. How to Sell Your Financed Volkswagen Selling your vehicle can alleviate the stress of ongoing payments. You can choose to sell privately, but this can be time-consuming. A quicker option? Bring it to Speedcraft Volkswagen! We Buy All Makes and Models directly at our dealership, saving you the hassle of private sales. With our online trade-in evaluator, you can check your car’s value without leaving home. How Speedcraft Volkswagen Supports Military Families Whether you’re navigating a lease return, selling your financed vehicle, or searching for a new ride, our team is committed to supporting you. We have extensive experience assisting military customers and understand the unique situations a PCS can present. Need Help? Visit Speedcraft Volkswagen Today Managing a PCS doesn’t have to be overwhelming, and your vehicle situation shouldn’t add unnecessary stress. At Speedcraft Volkswagen, we’re honored to serve military families in Rhode Island and beyond. Call or visit us today, and we’ll help you explore your best options. Get Directions | 104 Old Tower Hill Road, Wakefield, RI 02879

If you're looking to purchase a Volkswagen, you're not alone. The German automaker is known for producing quality cars, which is why millions of people choose Volkswagens. However, the question is, should you lease or finance one? Leasing and financing both offer different advantages and disadvantages—some of which could significantly impact your overall car ownership experience. Leasing a Volkswagen Leasing is an excellent option for drivers who want a new car for a few years without committing to owning it. Leasing provides a lower monthly payment than financing, and you get to return the car at the end of the lease period. This arrangement is ideal for drivers who want to enjoy the latest technology and features without worrying about resale value. However, leasing comes with mileage limits, and you'll face additional charges if you exceed the mileage threshold. Financing a Volkswagen Financing gives you more control over your vehicle and may be a better option if you don't want to deal with leasing restrictions. With financing, you'll be the owner of the car once you've paid off the loan. You have more flexibility with mileage and customizations. Unlike leasing, the car is yours to keep, and it can help build equity. However, the monthly payments are often higher than leasing, largely because you're paying for the entire car's purchase price. Pros of Leasing The first appeal of leasing a Volkswagen is that lease payments are typically lower than loan payments, which means you can drive a more expensive vehicle for less money each month. Additionally, because leases are shorter than loans, you'll get a new car every few years, which can be a significant advantage. Another significant advantage is that you won't have to deal with selling the car, as it will be returned to the dealership at lease-end. Finally, because lease terms often expire within the car's warranty period, you're not likely to incur expensive repair or maintenance costs. Pros of Financing The biggest advantage of financing a Volkswagen is that you'll own the car once the loan is paid off, which builds long-term value. You can also resell the vehicle down the road, which is ideal for drivers who do not lease a car long-term. Additionally, because you own the vehicle, you have the freedom to make customizations or cosmetic changes. In the long run, financing will save you money compared to leasing because you're investing in the ownership of an asset, whereas with leasing, you're primarily paying for the car's use. Volkswagen Lease vs. Finance When it comes to choosing between leasing and financing a Volkswagen, there's no right or wrong answer. Each option offers pros and cons that you'll need to weigh based on your unique situation. If you're looking for a short-term solution or want to drive a brand-new car every few years, leasing is the best option. Financing may be your best option if you're not looking to make significant changes to the vehicle and want to own a car long-term. In the end, it's all about your personal preferences, lifestyle, and financial situation. When you're ready to make that decision, consult with a trusted auto dealer, and they can help you decide based on your circumstances.