Salary Sacrifice Early Termination

What is Early Termination

Early termination in the context of car leasing refers to the act of concluding or discontinuing a lease agreement for a vehicle before the originally agreed-upon contract duration has been fulfilled. In traditional car leasing, lessees commit to a specific period, often expressed in months, during which they are responsible for making monthly lease payments and adhering to the terms and conditions outlined in the lease contract.

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Early termination deviates from this contract by allowing the lessee to terminate the lease earlier than anticipated.

While this option provides flexibility for lessees who encounter unforeseen circumstances or changes in their needs, it typically involves certain conditions, fees, and consequences, which may vary based on the leasing company or funder and the terms of the specific lease agreement. These conditions and penalties are designed to offset the costs incurred by the lessor due to the premature termination of the lease.