You signed for 48 months and your situation changed. Here are the five exits Canadian lessors actually allow, what each costs, and how to tell which one leaves you least out of pocket.
| Option | What it means | Typical cost to you | Best when |
|---|---|---|---|
| Transfer the lease | An approved driver takes over your remaining payments and obligations. | The lessor's transfer fee, plus any incentive you offer the new driver. | You want out now and the payment is close to market. |
| Buy out and sell | You pay the residual, take ownership, then sell the car privately or to a dealer. | Sales tax on the buyout, minus whatever the car sells for. | The car is worth more than the residual. |
| Buy out and trade in | A dealer handles the buyout as part of your next vehicle. | Usually less than a private sale nets, but much less paperwork. | You are replacing the car anyway. |
| Return early (lessor's early termination) | You hand the car back and pay the lender's early termination amount. | Normally the most expensive route: remaining payments and charges. | No other option is available. |
| Wait it out | Keep paying and plan the handover at the end. | Your remaining payments. | Only a few months are left. |
A transfer is the cheapest exit for most people, which is why lease takeover marketplaces exist at all. The exceptions are a car worth clearly more than its residual (buy out and sell) or a lease with only a few payments left (just finish it).
Cost to transfer = transfer fee + cash incentive you offer
Cost to buy out and sell = residual + sales tax − what the car sells for
Cost to terminate early = the lender's quoted payout − anything they credit you
Example: 14 payments of $520 left, a $500 transfer fee and a $1,000 incentive costs you $1,500 to walk away. The same lease terminated early can cost most of the $7,280 still owing. Call your lender for the exact termination figure before deciding anything — it is the only number that settles the comparison.
Not freely. A lease is a fixed-term contract, so you either transfer it to an approved driver, buy the vehicle out, or pay the lender's early termination amount. Which ones are available depends on your lessor.
Almost always. A transfer usually costs a transfer fee plus any incentive you offer, while early termination can mean paying most of the remaining payments.
Completing an approved transfer does not create a missed payment, so it should not damage your credit. Stopping payments on a lease you never transferred will.
Plan for a few weeks: finding a buyer, their credit approval with the lessor, then signing and the handover. A realistic payment and clear photos shorten it the most.