Hello and welcome back to Money Girls Quick and Dirty Tips for a richer life.

I'm Laura Adams. What happens if you lease a car but need to end the lease before it expires?

John from Aventura, Florida, wrote in with a helpful resource for this predicament.

About a third of all consumers choose to lease a car instead of buying one.

Leasing usually allows you to drive a newer or more high-end vehicle for a lower monthly payment

we compare to the cost of using a loan to buy it for the same price and down payment.

Even if you purchase a car using a low interest loan, leasing is usually less expensive in the short term.

But the monthly payment is just one factor to consider when evaluating whether to lease a car.

I did two shows in the fall of 2008 about leasing versus buying a car.

If you miss them, listen to episodes number 89 and 90 for more information.

I discuss the fundamental differences between buying and leasing a car

and how to know which option is best for you. One of the disadvantages of leasing a car is that

breaking a lease can be expensive.

That could wipe out all the money you hope to save by choosing a lease in the first place.

Once you sign a lease, it's a binding legal contract that typically lasts anywhere from three to five years.

Early termination requires you to pay off the full balance of the lease,

in addition to paying hefty penalties to the car dealer or leasing company.

A broken lease can also leave a bruise on your

credit report. However, there's another way to get out of a car lease that's

affordable and doesn't affect your credit score. It's called lease trading.

John recommends using lease trader.com because it matches up people who want to get out of their

lease with people who want a lease.

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