Can I cancel my leased car in Al yusr? If yes how?

I leased a car in alyusr for about 3.5 years and planning to cancel it since i'm planning to purchase a car through company loan. Is it possible to cancel? If yes, HOW?

You have to pay Al-Yusr and get the car in your name and then sell it.
Look for someone who would transfer the contract in his name and carry on with the payments.

You have the following three options to get rid of this Al-Yusr car:

a) Check with the breakdown of your monthly repayment, a part is the return of loan money and the balance is interest, find out how much you owe and clear the debit payment. Some banks impose an early settlement penalty, check if it is applicable in your case.

b) Advertise your vehicle and get its best market price. Settle the loan with Al-Yusr. You may end up making a loss or a profit depending on the car's price.

c) Most difficult option of all, look for someone who pays you a cash deposit and transfers the balance outstanding amount in his name and frees  you completely of your liability with Al-Yusr.

A big DONT to remember, some friend's friends will approach you and offer you to make monthly payments and insist you continue the contract in your name. This is illegal and risky specially if the car is involved in an accident or any other illegal activity, or you decide to leave Saudi for good. :)

riazcdki :

Some banks impose an early settlement penalty, check if it is applicable in your case.

This practice is common in other countries but unfortunately not in KSA which is bad for lenders in fact.

Say you took a lease for 5 years, what banks do here is give you a schedule of payments for the whole duration. If you want to cancel at any time, you'll have to return the principle amount + the remaining interest on it. While, in other countries you have to return the principle LEFT + early termination fees BUT not the remaining period interest. Good for banks here but bad for lenders.

I recall some news about returning the car back to dealer and pay only for the period car is used. Not sure if it is applied for car rental or car on lease. Can someone confirm that.

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