Can You Move Out of State Using a Leased Car?

Short answer: Yes, you can usually move out of state using a leased car. However, it is essential to ask and inform the lessor. In most cases, the leasing company will have no objections, but some companies can have a clause in the agreement that prohibits moving out of state.

Let’s delve into this and answer the question of “Can you move out of state using a leased car?” in more detail.

How Do I Know That I Can Move Out of State Using My Leased Car?

You have to check your lease agreement.

Before doing anything else, such as calling your leasing company, etc., check your agreement.

There are three possible outcomes here:

• Your agreement explicitly prohibits moving out of state with the leased car: This means you cannot relocate the car across state lines without violating the lease. Doing so could trigger penalties, forced return of the vehicle, or even lease termination.
• Your agreement explicitly permits you to move out of state with the leased car: This allows you to move freely, usually with conditions. You may need to notify the leasing company, update registration, or provide a new address.
• Your agreement is silent regarding moving out of state with the leased car: Silence usually means permission is possible but unclear. You should contact the leasing company to confirm requirements and avoid accidental noncompliance.

Steps for Moving Out of State with a Leased Car

Once you have determined that you can move out of state with the leased car, here are the steps that you can follow to go through the moving process with ease.

1. Review your lease again

Start by reading the lease carefully. Look for mileage limits, relocation rules, and any requirements tied to returning the vehicle in another state. If it is not mentioned in the lease that you can move out of state, or if it prohibits you from moving out of state with a leased car, it is time to call the lessor.

2. Call your lessor

Let the leasing company know you are moving. Ask what steps they require, whether approval is needed, and how address changes should be handled. Take notes during the call.

3. Ask about return and end-of-lease options

If your lease is close to ending, confirm where the car can be returned. Some lessors allow out-of-state returns, while others require a specific dealership. 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 deliver 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.

4. Inspect the car’s condition

Check the vehicle for wear, scratches, or damage. Handling minor issues early can make the eventual return process smoother and less stressful.

Here are some actionable tips to keep in mind during the inspection:

• Walk around the car in good lighting and check all panels, bumpers, and mirrors
• Look closely for scratches, dents, or paint chips that go beyond normal wear
• Inspect the tires for uneven wear or low tread
• Check the windshield and windows for cracks or chips
• Clean the interior and note stains, tears, or damaged trim
• Address small issues early if they are simple and inexpensive to fix

Make a note of all the issues that you find so that you can refer to them later. Also, bring them to the attention of your lessor.

5. Plan how the car will be moved

Decide whether you will drive the car to your new state or have it transported.

For long moves or limited time, hiring a moving company to ship the vehicle may be the easier option.

Here is a table that briefly describes the pros and cons of driving yourself and hiring a moving company, as well as the situations that call for them, respectively:

6. Update your driver’s license

After relocating, visit the local motor vehicle office to update your driver’s license. Most states require this within a set time after establishing residency.

7. Handle registration requirements

Ask your lessor how vehicle registration should be handled in your new state. Some leasing companies manage this directly, while others require coordination on your end.

8. Update records with the lessor

Provide your new address and any documentation they request. This ensures payments, notices, and lease communications stay accurate.

9. Keep all paperwork organized

Save copies of lease documents, registration records, and communication with the lessor. Having everything accessible helps avoid confusion later.

Can I Break a Car Lease If I Move Out of State?

Keeping in mind the norm that is followed with regard to car leases, the answer is no. In most cases, you cannot break a car lease if you want to move out of state.

Moving out of state can make a car lease harder to manage, but it does not automatically allow you to break it.

Most lease agreements stay in force even after you relocate, and ending one early often leads to fees or remaining payments.

Some lessors offer limited options, such as early termination programs or lease transfers, though these usually come with conditions.

The exact outcome depends on the terms of your lease and the flexibility of the leasing company.

How to Terminate a Car Lease When Moving Out of State?

If your lessor does not allow out-of-state moves, here are the steps you can take to terminate the lease:

1. Review the early termination section of your lease to understand obligations
2. Call your lessor to confirm termination options and required notice
3. Ask for an early payoff amount and a breakdown of charges
4. Explore lease transfer or assumption programs, if offered
5. Schedule a pre-return inspection to identify potential charges
6. Arrange the vehicle return at an approved location
7. Keep records of all communication and final paperwork

Wrapping Up

When moving out of state in a leased car, you normally don’t have to worry about any problems. All you need to do is review the lease agreement. If you are permitted to take the car out of state, you can do so with ease. We’ve provided a step-by-step guide on how to do it in the post above.

On the other hand, if you are not allowed to take the leased car, you may not have a choice but to terminate it.