Can military orders break a car lease?

Military members often face unexpected changes in their assigned duty stations due to deployments, transfers, or other orders. This can pose a challenge when it comes to managing personal affairs, such as a car lease. So, the question remains: Can military orders break a car lease?

Yes, military orders can break a car lease.

Under the provisions of the Servicemembers Civil Relief Act (SCRA), active-duty service members can terminate a car lease without penalty if they receive orders for a permanent change of station (PCS) or deployment for a period of 180 days or longer. This law provides protection for military personnel facing significant changes in their duty assignments that make it difficult to fulfill contractual obligations, such as a car lease.

FAQs:

1. Can military orders break a residential lease as well?

Yes, under the SCRA, military members can terminate residential leases when they receive orders for a PCS or deployment lasting 90 days or longer.

2. Do I need to provide proof of military orders to break a car lease?

Yes, you will need to provide a copy of your official military orders to the car leasing company as evidence of the reason for terminating the lease.

3. Will breaking a car lease affect my credit score?

No, as long as you terminate the lease under the provisions of the SCRA, it should not have a negative impact on your credit score.

4. Can I break a car lease if my orders are for training purposes?

No, the SCRA specifically covers orders for a PCS or deployment for 180 days or longer, not training assignments.

5. Can I transfer my car lease to another military member instead of breaking it?

Yes, some car leasing companies may allow you to transfer your lease to another qualified individual, including another service member.

6. What if I leased the car jointly with a civilian spouse?

If you and your civilian spouse are both on the lease but only you receive military orders, you can still terminate the lease under the SCRA.

7. Are there any fees involved in breaking a car lease under military orders?

No, the SCRA prohibits car leasing companies from charging any early termination fees or penalties when a service member terminates a lease due to military orders.

8. Can I break a car lease if I am a member of the National Guard or Reserves?

Yes, the SCRA extends its protections to members of the National Guard and Reserves who receive orders for active duty for 180 days or longer.

9. Will I get a refund for any prepaid lease payments?

Yes, if you have prepaid any lease payments, you are entitled to a prorated refund for the unused portion after terminating the lease.

10. How do I notify the car leasing company about breaking the lease due to military orders?

It is best to notify the leasing company in writing, along with a copy of your military orders, to officially request the termination of the lease.

11. Can breaking a car lease impact my security clearance?

No, as long as you follow the proper procedures under the SCRA and fulfill any financial obligations related to the lease termination, it should not affect your security clearance.

12. Can I negotiate with the leasing company to waive the lease termination fees?

Yes, some leasing companies may be willing to work with you on waiving fees or offering alternative solutions when breaking a lease due to military orders. It is worth exploring your options and communicating openly with the company.

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