SCRA Vehicle Lease Termination Fact Sheet

A U.S. Department of Justice fact sheet explaining servicemembers' rights to terminate vehicle leases early under the Servicemembers Civil Relief Act (SCRA) when receiving qualifying military orders.

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Eligibility for early lease termination

The document states servicemembers may terminate vehicle leases without penalty if they sign a lease and later: (1) enter active duty for at least 180 days, (2) receive deployment orders for 180+ days, or (3) receive permanent change-of-station, retirement, or separation orders requiring relocation outside their current region. Covered leases include personal, business, and family vehicles when the servicemember is on the lease.

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Termination process requirements

To terminate a lease, servicemembers must provide written notice and a copy of military orders to the leasing company, then return the vehicle within 15 days. The leasing company may only charge prorated costs up to the return date and must refund prepaid amounts. Certain fees like early termination charges are prohibited.

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Financial protections

The document specifies that lease holders must refund prepaid rental fees and prorate any capitalized cost reductions. They may only charge for excess wear, mileage, taxes, registration, or outstanding tickets. Concessions received at lease signing need not be repaid.

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Additional rights and resources

The fact sheet notes protections don't apply to owned vehicles and directs servicemembers to legal assistance offices or the DOJ complaint portal for help. It clarifies that leases need no military clause to qualify and that spouses/dependents on joint leases share termination rights.

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Document record

Document type
Other DOJ document
Category
Rights
Publication date
2026-11-10
DOJ office
Civil Rights Division
Case number
Not stated by source
Collected
2026-11-13
Original filename
scra_vehicle_lease_termination_fact_sheet.pdf
02

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