The Servicemembers Civil Relief Act (SCRA) says if you enter into a car lease and later get orders to Permanent Change of Station (PCS) overseas or to deploy for at least 180 days, you can terminate the car lease without paying a penalty.

To terminate the lease you have to provide a written notice of termination to the person from whom you leased the vehicle (the lessor) and include a copy of your military orders. The notice can be delivered by hand, by a private carrier, or by certified mail with return receipt via the US Post Office.

You also have to return the vehicle to the lessor within 15 days from the date of your written notice. The lease is terminated only after written notice is provided AND the car is returned to the lessor.

The lessor can’t charge you for the early cancellation of the lease, but can still charge you for any taxes, title and registration fees, summonses or any other outstanding fees, including charges for excessive wear and tear and mileage that were due and unpaid on the date of termination. Any advance payments you made must be refunded within 30 days of the termination.

Contact your local JAG or installation Legal Assistance Office for more information.