Find answers to common questions about early lease termination.
Yes, you can, but there could be large penalties for doing so. The penalty could be up to several thousand dollars. The actual charge (known as the Early Termination Liability) will depend on when the lease is terminated.
Lease agreements differ, and the examples and explanations on this page are provided for illustration only. Please refer to your lease agreement for the specific terms and fees that apply to your lease.
In general, the Early Termination Liability is calculated as follows:
The Early Termination Administrative Charge is based on the percentage of months expired in the lease term, according to the following schedule:
Percentage of months expired in lease term (rounded to a full percentage point)
Number of base monthly payments due
Percentage of months expired in lease term (rounded to a full percentage point)
Number of base monthly payments due
Refer to your lease agreement to determine if this fee applies to your lease.
The Lease Balance is calculated as follows:
The term "Actuarial Method" refers to the method of allocating Base Monthly Payments between: (i) the reduction of the Adjusted Capitalized Cost to the Residual Value over the lease term; and (ii) Rent Charges. Under this method, a Base Monthly Payment is applied first to the accumulated Rent Charges and any remainder is subtracted from, or any deficiency added to, the balance of the Adjusted Capitalized Cost.
The Realized Value will be determined in one of the following ways:
If a 36-month lease on a vehicle is terminated early, after 17 lease payments have been made, the early termination liability would be calculated as follows.
Refer to your lease agreement to determine which fees apply for your lease.
Description of charge
Amount of charge
+ Termination Fee
+ Early Termination Administrative Charge (2 base rent payments of $475.79; see the chart above for calculation of this charge)
+ All unpaid amounts due or past due
+ Official fees, taxes and other charges related to early termination
+ All expenses related to recovering, obtaining, storing, preparing for sale and selling the vehicle
+ Lease Balance
+ Residual Value
- Realized Value
= Early Termination Liability
Description of charge
Amount of charge
+ Termination Fee
+ Early Termination Administrative Charge (2 base rent payments of $475.79; see the chart above for calculation of this charge)
+ All unpaid amounts due or past due
+ Official fees, taxes and other charges related to early termination
+ All expenses related to recovering, obtaining, storing, preparing for sale and selling the vehicle
+ Lease Balance
+ Residual Value
- Realized Value
= Early Termination Liability
Find answers to common questions about auto leasing.
Learn about the options available to you as you approach the end of your U.S. Bank lease term.
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