Ford Early Lease Termination Policy Explained

Ford logo sign on the outside of a dealership

Short Answer

Ford allows early lease termination, but the associated fees and penalties will depend on the instructions detailed in your lease and whether you want to trade in the vehicle or end your relationship with Ford.

Ford Early Lease Termination Policy

Ford allows lessees to terminate their leases early; you can find the instructions for early termination in the “Voluntary Early Termination” section of your lease.

You can also access your lease online, call Ford Credit customer service at (800) 727-7000, or visit your local Ford dealer.[1][2]

Lessees have several options for terminating a lease early to avoid penalties, including:[1]

  • Trading in for a new vehicle
  • Paying the lease in full
  • Returning the vehicle and paying any associated fees (if you’re far enough along in your lease term — the time limit will vary by lease agreement)

If you need a larger or smaller vehicle, trading in for a new one may be the best option for you.

If you know your car is over the allowed mileage, buying out the lease and purchasing the vehicle may be a better option than paying for the additional mileage. Ford Credit allows lessees to make remaining payments in full at any time with no penalties.[1]

Some Ford dealers participate in early lease termination promotions that allow customers to avoid penalties for early termination if they lease a new Ford vehicle.

For example, the Ford Early Bird lease ending program waives up to three months of payments for lessees willing to trade.[1]

Financial Responsibility

Military service members are protected by federal regulations that may allow them to early terminate a lease without financial responsibilities, depending on the individual circumstances.[3]

However, lessees who are not service members can expect to pay fees and penalties if they terminate a lease early.

We contacted Ford Credit and were told that the following fees and penalties may apply, depending on your specific lease:

  • Early termination fee: Determined by each dealer or lender and may include all remaining payments on the vehicle[1]
  • Disposition fee: Up to $400; recovers dealer costs to put the car back on the market[1]
  • Storage and transportation: Any costs for the dealer to transport and store the vehicle[1]
  • Taxes: Any taxes incurred are the responsibility of the lessee[1]
  • Negative equity cost: The difference between the current value of the vehicle and the total payoff amount as stated in the lease[1]

Credit Score Impact

On-time and complete payments never adversely impact your credit score. As long as you make all of the payments associated with ending your lease early in a timely and complete manner, early termination will not negatively impact your credit score.[1]

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