Can You Move Out of State With a Leased Car?

Read your lease agreement thoroughly

Whether or not you can move out of state with a leased car can be checked in your lease agreement. Some leases specifically note that it is possible to move out of state with a leased car. Others, for example, either prohibit this or do not mention this clause at all. If your lease contract says that you can move out of state with that car, you can proceed with registration and re-titling a car in the new state. On the other hand, if it is not mentioned in the lease that you can move out of state or it prohibits you to move out of state with a leased car, it is time to call the lessor.

It is important to know that the lease can be amended if the lessor is ready to make the changes. In this case, you might even get the chance to move out with the leased car even if the lease agreement states differently at first.

Call your lessor

It may happen that due to legal jargon you find it difficult to interpret the agreement. We recommend that you call the lessor and find out more about moving out with a leased car. Sometimes you may not be able to even find that paragraph concerning relocation to a new country with the car in question. To avoid any misunderstandings, the best thing you can do is to contact the lessor and gather all information that you need for your upcoming relocation.

You will need to return the car to its original state eventually

In most cases, once the lease ends, you must return the car to the owner. This implies that you need to return the car to the original state where you used to live. Our advice is to check whether the owner or the company that owns the car has a licensed dealership in the state you are moving to. In this case, you may only need to return the car to that dealership, and not to the former state. This also requires you to get in touch with the lessor and make an agreement with them.

In case you have to return the car, you can drive it to that state, and get back by plane, bus, or any other vehicle. You also have the option to hire a professional moving company that will relocate your car and delivers it to the owner. While these options are not the cheapest ones, you will need to choose some of them to return the car to the owner.

Check for the tax obligations in your new state of residence

When moving to a new state with a leased car, you have to be aware of any taxes you need to pay for the car. Some states charge tax at the beginning of the lease, while others charge it during the lease. If you are moving to a state where the tax is charged during the lease, any previous tax that you paid will not be accounted for in most states.

Retitling and registering the leased car in the new state

When you move out of state with a leased car it is important to know that you need to retitle it and register it. In some states, you need to register your car within 10 days of the relocation. You will have to pay for any fees associated with retitling the car and tilting it back when you return it to the original country, as well as the registration fees.

When it comes to car registration, you need to have all the necessary documentation in place. This includes your current registration, a certified copy of the title certificate, current insurance ID, old insurance policy. You will also need your US driver`s license, just like the authorization from your leasing company for car registration, as well as the proof that you paid all the taxes necessary.

Update your driver`s license on time

Once you register your car, you should go to the DMV to return the old plates of your car. Additionally, you will need to update your driver`s license. It would be best to visit the DMV within the first 30 days after the relocation. Ask them whether there is anything else you need to do when it comes to your driving experience in a new state. They might ask you to do a vision test, or take a written exam to cover the basic rules of driving. This depends on the state, and you will be informed about the requirements once you visit the DMV.

Inform your car insurance company about your relocation

If you are planning to move with a leased car, you should notify your car insurance company about the relocation. In some cases, the insurance company will have an authorized dealership in your new state, in which case you can just continue to use their services from your new state. If they don`t have an authorized dealership in your new state, you will need to find a new insurance company when you relocate with your leased car.

What happens if you want to break the lease?

In case your lease agreement states that you cannot move out of state with a leased car, and the lessor will not amend or annex the agreement, you will need to break the lease. If you want to break the lease, you need to pay for the rest of the money you own plus a termination fee. On the other hand, you can find someone to take over your lease and continue to use the car.

Hire professionals to help you with your relocation

Moving out of state with a leased car is not simple, as it involves plenty of paperwork, registration, retitling, insuring your car, contacting the lessor, etc. Hiring movers to help you pack and relocate your belongings is a perfect choice that will leave you with plenty of time to deal with your leased car. Good luck!