Toyota considers early lease termination to include any vehicle return more than 31 days before the lease maturity date. Your early return balance and associated fees will vary on a case-by-case basis. For more information on the Toyota early lease termination policy, see below.
Toyota Early Lease Termination
Toyota’s early lease termination policy varies depending on the details of your lease; for specific guidelines, you’ll need to check your lease agreement or contact your local dealership.
However, companywide, Toyota considers early termination to be any return of a leased vehicle more than 31 days before the end of the lease. The dealer will calculate an early return balance within up to 120 days following termination to reflect the vehicle being sold at auction.
Fees and Penalties
We contacted Toyota Financial for a list of possible penalties and fees you may have to pay upon early lease termination. Depending on your lease, the following may apply:
- Early return balance: Calculated by your Toyota dealer; may include the remaining car payments
- Disposition fee: Up to $350; covers the vehicle’s resale costs
- Storage and transport fees: Covers costs to transport and store the vehicle after you return it
- Taxes: Included in your final return balance
- Negative equity cost: The difference between the vehicle’s contract purchase price and its market value
Toyota has special early lease termination provisions for members of the military, their families, and deceased lessees.
Under the Servicemembers’ Civil Relief Act (SCRA), eligible service members can terminate a lease agreement before the scheduled maturity date without early lease termination charges. The Gold Star Military Program also enables eligible service members and spouses of service members who have passed away, a catastrophic illness, or an injury to terminate a lease early.
In the event of a customer’s death, Toyota can transfer the lease. This means that someone other than the original lessee will take over the lease contract and obligations. If all parties on the lease are deceased, early termination and forgiveness of any remaining lease payments may be an option through probate lease cancellation.
If any of the above scenarios fit your situation, contact Toyota customer service at (800) 874-8822 to determine your eligibility and the best course of action.
Credit Score Impact
As long as you make all of the required payments — including lease-end costs — on time and in full, ending a vehicle lease early will not have any impact on your credit score. However, if you fail to make payments or default on the lease, your credit score may drop.