Exiting a Car Lease UK: Which of the 5 Options is Right for You?

If you’re wondering how to exit a car lease in the UK, you’re not alone. Whether your circumstances have changed, you’re moving abroad, or simply no longer need the vehicle, many drivers eventually find themselves asking: “What’s the best way to get out of a car lease early?”

The good news is—there are multiple options. But which route is right for you depends on your financial situation, lease agreement terms, and how quickly you want to exit. In this article, we’ll break down the different ways to exit a car lease, including pros, cons, and what works best in different scenarios.

1. Car Lease Transfer – The Smartest Way to Exit Your Lease Early

Best for: Those wanting a cost-effective, fast, and penalty-free exit.

A car lease transfer allows you to transfer your lease to someone else who takes over the remaining payments and responsibilities. It’s a popular option in the UK thanks to platforms like RevoLease, which connect people looking to exit their lease with those looking for short-term lease deals.

✅ Pros:

• Avoids hefty early termination fees
• Keeps your credit score intact
• Quick turnaround if you find a buyer
• Helps someone else looking for a short-term or flexible lease

❌ Cons:

• Not all finance companies allow transfers (check your agreement)
• May require a small admin fee and the new lessee must pass credit checks
• You may need to actively advertise or use a service to find a buyer

🚗 Perfect for:

Drivers with several months or years left on their contract who want to avoid penalties and help another driver in need of a short-term lease.

2. Early Termination Through Your Leasing Company

Best for: Those who want a clean break and don’t mind paying.

Early termination is the process of returning the car before the lease term ends by paying a lump sum, which usually includes:

• Outstanding rentals
• Early termination fee
• Possible excess mileage or damage charges

✅ Pros:

• Ends the contract immediately
• No need to find another lessee
• Often handled smoothly by finance providers

❌ Cons:

• Can be very expensive (up to 50% of remaining payments)
• Affects your cash flow
• May impact credit if not paid in full

🚗 Best for:

Drivers who need to walk away quickly and have the means to cover the cost.

3. Voluntary Termination (for PCP Agreements)

Best for: Those with a Personal Contract Purchase (PCP) lease who have paid at least 50% of the total finance amount.

Under the Consumer Credit Act (Section 99), if you’ve paid off 50% or more of your total finance (including fees and interest), you can voluntarily terminate the agreement and hand back the car.

✅ Pros:

• Legal right for PCP customers
• Avoids long-term financial burden
• Credit score usually unaffected

❌ Cons:

• You still have to pay until you reach the 50% threshold
• Must return the car in good condition
• Not available on standard lease or PCH (Personal Contract Hire) agreements

🚗 Best for:

PCP customers nearing the halfway point of their contract who want a lawful way out.

4. Part-Exchange the Lease Vehicle

Best for: Drivers looking to switch vehicles or upgrade.

Some dealerships allow you to trade in your current leased vehicle for a new finance agreement. If the car’s value is more than the settlement figure, you may even carry equity into the new deal.

✅ Pros:

• Convenient if you’re changing vehicles
• May help offset remaining payments
• One-stop solution with a dealer

❌ Cons:

• Unlikely to work if your car has depreciated significantly
• May involve long-term financial commitment on a new vehicle
• Potential loss of equity

🚗 Best for:

Drivers wanting to stay in a car but switch brands or models.

5. Negotiating with the Leasing Company

Best for: Those experiencing financial hardship or changes in circumstances.

If you’re struggling with payments, your leasing provider may offer flexible options—such as payment holidays, revised terms, or settlement plans.

✅ Pros:

• Opens a dialogue before missing payments
• May avoid negative credit impact
• Shows responsibility and transparency

❌ Cons:

• No guarantee of favourable outcome
• Can take time to negotiate
• May still involve fees or interest

🚗 Best for:

Those in temporary difficulty or uncertain employment situations.

Which Car Lease Exit Option Is Best for You?

Final Thoughts: What’s the Best Way to Exit a Car Lease?

When it comes to how to exit your car lease early in the UK, a lease transfer is often the most cost-effective and efficient solution, especially for those not eligible for voluntary termination. It avoids large penalties, protects your credit, and helps someone else get a great deal on a short-term car lease.

Before making any decisions, always check your lease contract and speak with your provider. And if you’re ready to explore lease transfers, platforms like RevoLease make the process simple, secure, and fast.