Stuck in a Gas Guzzling Lease? There May Be a Way Out!

Despite the price of gas still near $4 per gallon, millions of SUV drivers are hesitant to escape their vehicle simply because they think the cost of exit will outweigh the benefits. (It doesn't help that a lot of owners are upside down on their vehicle loans.) It can take years to realize the gas cost savings when you calculate what it takes to get rid of your SUV and then shop for a more fuel-efficient vehicle.

If you lease your SUV, though, you may be in a better situation. Even if you still have several months remaining on your SUV lease, nationwide programs are available that let you transfer ownership of your lease to someone else, essentially letting you walk away from your contract. Often, the price to walk away can be less than half of one car payment.

For some, the cost of breaking an SUV lease can be as high as $10,000. "When you break your lease, you're essentially paying out the balance of the remaining payments," said Sergio Stiberman, CEO and founder of LeaseTrader.com. SUV drivers can list their vehicle on the site for $79, find someone else to take over the remaining portion of the lease and transfer ownership for $149.

I've reported before on this blog that I used a lease assumption service to get a sweet deal on a Mustang convertible. It worked out really well for us, and I would recommend this option to others who not ready to make a long-term commitment to a particular car - or car payment. (The other major player in this market is Swapalease.)

My only question is whether there are many people willing to take on the lease payment for a large vehicle. My guess is there are many more drivers wanting to unload them than those looking. I spotted a Hummer listed on LeaseTrader for $285 a month...it appears the owner is going to continue making the rest of the $425/month payment if he can get a taker.   

The car I drive now is paid for. But if I were in the market for a vehicle right now, I would definitely see what's available on these sites.

Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com. Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of Stop Debt Collectors: How to Protect Your Rights and Resolve Your Debts