A servicemember who is called to active duty for at least 180 days may terminate a motor vehicle lease signed before being called to active duty without paying an early termination fee or other penalty. To avoid fees or penalties, the servicemember must give the lessor, grantee, or agent (i.e., the person or company that leased the vehicle) written notice of the termination and a copy of the servicemember’s military orders. The vehicle must be returned to the lessor or lessor’s agent within 15 days of the delivery of the notice.

If the servicemember signs a motor vehicle lease after being called to active duty, that lease can be terminated if the servicemember receives orders for a permanent change of station outside the U.S. or to deploy with a military unit for 180 days or more.