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title: Cancellation Fee
description: What is a cancellation fee?
---

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# Cancellation Fee

## What is a cancellation fee?

A cancellation fee may be invoiced to a customer from a leasing company when they choose to end their lease earlier than stipulated in the contract.

In the case of an early termination, the customer will need to pay a compensation payment for the depreciation of the car and the income the bank loses through the early termination.

Some leasing companies additionally charge a cancellation fee, which aims to cover the additional administrative effort connected to an early cancellation.

While changes in a customer’s life circumstances may result in the need to cancel a leasing contract early, it is advised the customer ensure before signing the contract that they can uphold the financial commitment of a lease, since early terminations are nearly always associated with high costs.

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