Car Lease for Military: Understanding Your Options

As a military service member, you're likely no stranger to the idea of moving around the country for your job. You might be stationed in a new location every few years, and with that comes the need for reliable transportation. Fortunately, there are car lease options specifically designed for military personnel.

Leasing a car can be a great option for military service members, as it often comes with benefits like no down payment and lower monthly payments. For example, some car lease programs for military personnel offer no down payment, which can be a huge help when you're already dealing with the stress of a move.

One of the biggest benefits of leasing a car is the flexibility it offers. Since you're not locked into owning the car, you can take advantage of the military's PCS (Permanent Change of Station) policy and move on to your next assignment without worrying about selling a car.

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Exiting a car lease can be a daunting task, especially for military servicemembers who are called to active duty. The Servicemembers Civil Relief Act (SCRA) allows servicemembers to cancel a car lease under certain circumstances.

To be eligible, the lease must have been entered into during active duty, and the servicemember must receive orders for a permanent change of station or deployment for 180 days or more.

If you're a military servicemember, you can break a vehicle lease by giving the lessor a written termination notice and a copy of your military orders. This notice must be delivered by hand, private business carrier, U.S. mail, or electronic means with return receipt requested.

You must return the car to the lessor not later than 15 days after delivering the termination notice. If you're deployed on active duty for 180 days or more, you can terminate any motor vehicle lease that meets specific requirements.

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To terminate the lease, you must give the lessor a notice of the intention to terminate the lease together with a copy of the military or gubernatorial orders calling you to active duty. The motor vehicle subject to the lease must be returned to the custody or control of the lessor not later than 15 days after the delivery of the written notice.

The lessor may not impose an early termination charge, but any taxes, costs of summons, and title or registration fees and any other obligation and liability of the lessee under the terms of the lease must be paid by the lessee.

Here are the key steps to follow when terminating a car lease as a military servicemember:

By following these steps, you can exit your car lease and avoid any unnecessary financial obligations.

If you signed a car lease before entering active duty, you have certain rights under the law. You may cancel your lease if you enter military service under a call or order of at least 180 days.

This rule applies to both short-term and extended orders. If you have orders for a shorter period of time that are extended to a period of at least 180 days, you can still cancel your lease.

To qualify, you'll need to meet the minimum service requirement of 180 days. This is a specific rule outlined in 50 U.S.C. § 3955 (2024).

Here are the specific scenarios in which you can cancel your lease:

You can cancel a car lease if you receive orders for a permanent change of station from the continental U.S. to a location outside the continental U.S., including Hawaii and Alaska.

To qualify, the orders must be for a change of station, not just a deployment. For example, if you're in Alaska and receive orders to go to California, you don't have the right to end the lease.

If you're deployed with a military unit or in support of a military operation for 180 days or more, you may also cancel the lease. This applies to leases entered into during active duty.

Here are the specific situations where you can cancel a car lease due to active duty orders:

If you enter into a car lease while on active duty, you have certain rights under the Servicemembers Civil Relief Act (SCRA).

You may cancel a car lease if you receive orders for a permanent change of station from the continental U.S. to a location outside the continental U.S., including Hawaii and Alaska. This includes moving from a state in the continental U.S. to a different state, such as from California to Alaska.

You can also cancel a car lease if you're deployed with a military unit or in support of a military operation for a period of 180 days or more. This is a significant benefit for those who are called to serve overseas.

If you're deployed, you'll need to provide proof of your deployment to the leaseholder. This can be a copy of your military orders or other documentation.

Here are the specific situations where you can cancel a car lease:

If you're enlisted in the military, the Servicemembers Civil Relief Act (SCRA) can provide protections related to your car lease. Under the SCRA, servicemembers can end a car lease without paying early termination fees under certain conditions.

You may be eligible to end your car lease if you entered into your lease before joining the military and then went active-duty, or if you signed a lease while you were active-duty, then received orders for a permanent change of station within the mainland US or from the mainland US to elsewhere, or received orders to deploy for at least 180 days.

To end your car lease, you'll need to notify the leasing company of your military enlistment and provide a copy of your deployment or PCS orders. This can be done by contacting the leasing company directly and informing them of your situation.

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You'll also need to send a written notice of your termination along with a copy of your military orders via certified mail. This will provide a record of your notice and help protect your rights under the SCRA.

Once the leasing company acknowledges receipt and confirms the termination, you'll generally have 15 days to return the car. Be sure to return the vehicle in the same condition as when you leased it, as you may be responsible for any wear and tear.

Here's a summary of the steps to follow:

Filing a claim under the Servicemembers Civil Relief Act (SCRA) for a car lease is a relatively straightforward process. You must return the vehicle within 15 days of the leasing company receiving the envelope with your notice.

The lease is terminated once the leasing company has the notice and the car. You won't be charged an early termination fee, but you'll still need to pay all amounts due on the lease through the termination date, including taxes, vehicle registration fees, and any damages to the vehicle.

You'll also need to provide proper documentation to support your claim. This is crucial to ensure a smooth process. The leasing company must refund any lease prepayments made within 30 days of the termination.

A leasing company can challenge the termination, so be prepared for the possibility. They may try to prove that your orders didn't permit a termination, or that your military service didn't affect your ability to pay the lease payments.

You can cancel a car lease under certain circumstances if you're a military servicemember. The Servicemembers Civil Relief Act (SCRA) allows you to do so.

To cancel a lease, you must give the lessor a written termination notice and a copy of your military orders. This notice must be delivered by hand, private business carrier, U.S. mail, or electronic means with return receipt requested.

You must return the car to the lessor not later than 15 days after delivering the termination notice. If you're enlisted in the military, the SCRA can provide protections related to your car lease.

Here are the steps to follow:

You may be responsible for any taxes, summonses, and title and registration fees, and any other obligation specified in the lease agreement, including wear and tear. It's a good idea to explore this with a financial counselor or someone similar who can walk you through the process and make sure you're not skipping any important steps.

If you're a military personnel, you're in luck - your motor vehicle lease can be terminated under certain circumstances.

Active-duty military personnel are covered by the Servicemembers Civil Relief Act (SCRA), which allows them to terminate their vehicle lease if they signed it before or while on active duty.

You can also be released from your lease if you're deployed for over 180 days or if you're permanently changing stations outside of the US.

Paying early termination charges is still possible, but it must not exceed 150% of the total amount remaining on the lease.

This benefit is a great advantage for military personnel who need to adjust their lease due to their service.