About 27% of Americans choose to lease their wheels – and whether new or used, around 43% finance their cars. And many people with leased or financed cars opt to ship their vehicles during a move to make relocation easier and more efficient. So if you’d also like to streamline your move and ship a car, you may wonder if your leasing company, bank, or lienholder will permit auto transport.

In general, having a lease or loan on your car doesn’t prevent you from legally shipping it – at least in the contiguous United States. As long as you have the required documentation and are current on payments and insurance, shipping your car typically isn’t a problem. However, if you’re considering shipping to Alaska or Hawaii, there may be some restrictions, especially on leased vehicles. Let’s take a look at the ins and outs of shipping a leased or financed car so you’ll know your options.

Shipping a Leased or Financed Car in the Contiguous United States

In most cases, you’ll have no trouble shipping your leased or financed car in the contiguous United States. As long as your payments and auto insurance are up-to-date, lienholders don’t have a problem if you want to transport your car. Just do a little homework and find out some details:

  • Read Your Lease or Loan Contract
    • Most likely your lease or loan contract has a section on shipping your car.
    • Read to find out whether shipping is or is not permitted, if it’s restricted to the state where you signed the lease or contract, and/or any restrictions.
  • Call Your Lien Holder
    • Call your bank or lienholder and ask them about their car shipping policies.
    • Follow their requirements to the letter, and you’ll be good to go. 
    • Since laws can vary from state-to-state, you’ll also want to research auto insurance, registration, and driver license requirements for the new state where you’ll be shipping the car. 
  • Call the Auto Shipping Company
    • Ask the shipping company which documents they’ll require for shipping your financed or leased vehicle.
    • At a minimum, you’ll need to provide a copy of the lien and proof of auto insurance.

Shipping a Leased or Financed Car to Hawaii, Alaska, or a U.S. Territory

In general, it’s easier to get permission to ship a financed car to Hawaii, Alaska, or a U.S. territory than it is to get permission to ship a leased car. Shipping permission will depend on your signed contract and the individual lienholder’s transport policies. For ocean shipping, such as to Hawaii or the U.S. Virgin Islands, shipping policies can vary between shipping lines and the port they ship from. 

Although the car is registered in your name – remember, you don’t own it – the institution that owns the vehicle has the final word on whether it can be shipped outside of the contiguous United States or not. Therefore, since there is no cut and dry answer, cover all your bases and contact the lienholder as well as the shipper when you’re considering transporting your leased or financed car outside of the contiguous United States. Here are some added details about shipping financed vehicles compared to a leased vehicle:

  • Financed Vehicle 
    • In general, it will be permissible to ship a financed car to Hawaii, Alaska, or a U.S. territory if: 
      • your payments are punctual and current 
      • you provide proof of up-to-date insurance coverage 
      • you provide the reason for shipping the vehicle 
    • In most cases, an approval letter from the bank or lienholder is required. 
    • It may be difficult to register your vehicle in your new state or territory if you don’t have the required documentation specific to your financed vehicle.
  • Leased Vehicle
    • Because lease vehicle contracts specify how the car may be used and the penalties and fees that are associated with misuse, you’ll want a thorough understanding of your contract before assuming you can ship it. 
    • If you don’t understand the contract provisions and go ahead with unauthorized shipping, you could be faced with higher monthly costs, expensive penalties, or be forced to buy out your lease. 
    • If the bank or lien holder gives you a verbal OK to ship, still, be sure to have them submit a lienholder approval letter specifically for shipping to Hawaii, Alaska, or a U.S. territory.  
    • Also, once you have the approval to ship your car to Hawaii, Alaska, or a U.S. territory, you must notify the lessor that you’re moving and make sure the vehicle is properly registered and titled in your new state or territory.

Shipping a Financed Car to a Foreign Country

Depending on the loan, some financed cars can be shipped to a foreign country. It’s best to call your bank or lienholder to find out the specifics. If your car is financed and the lien holder will allow you to ship it to a foreign country, the transport company will require both a lien authorization letter and a copy of the title – both notarized by the lienholder. The two documents must be physically mailed, not emailed or faxed so that the paperwork shows the original notarization stamp.

Shipping a Leased Car to a Foreign Country

In most cases, lessors will not allow you to take your leased car to a foreign country. To be sure, contact your leasing company and read through your contract.

The Bottom Line

Each bank or lienholder has its own policies when it comes to shipping a leased or financed car. Do your homework, and if you find out that shipping is permitted, then your next step will be to get a fast free auto shipping quote.

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Caravan Auto Transport saves you time and stress when you’re trying to find a trustworthy car shipper for your leased or financed vehicle. We vet every vehicle hauler in our network to make sure they’re reputable, licensed, insured, and provide top-quality customer service. Ask for a free quote now! 

Find out how much it costs to ship your car!