Car Lease Swap Blog

Get Your Free Consultation

The process of exiting your lease does not need to be painful. You simply need to understand your options. A lease transfer is likely one of the lease expensive and easiest methods for removing your liability to a vehicle. If you are under a lease agreement, most likely you are locked into that agreement for the remainder of the term.

The basic process for transferring your lease takes these basic steps:

1. The person who is assuming your lease needs to pass a credit check and needs to fill out the correct forms with your leasing company.
2. The leasing company will perform background and credit check and then will decide whether or not to accept the applicant.
3. If the person is approved, then the necessary documents will be prepared and subsequently sent to the buyer and seller. These need to be signed and returned to the leasing company.
4. Once the paperwork has been signed and returned to the leasing company, then the seller needs to release the keys to the purchaser and send the transfer paperwork over to the leasing company.
5. Within about week the leasing company will send out confirmation paper work to both parties. The new owner will begin to receive payment coupons for the lease.

Are There Company Restrictions?

Although the above sound so easy, there are restrictions. Every leasing company works differently, and every lease has its own restrictions. Some companies do not allow a transfer of the lease.

When transferring your lease you should consider: The ability to transfer, Transfer restrictions, Contingent Liability, and Transfer Fees. Do beware that some companies even charge the transfer fee before the buyer is credit-approved.

What are the fees associated with transferring a lease?

In addition to the aforementioned transfer fees there are other associated fees. These fees may include: Shipping, Advertising, Inspection fees, and Taxes. You may consider opening up an account to deal with these fees separately. However, if your buyer is local, you may not need to pay any of these fees.

There are alternative to transferring your lease such as trade-ins, buy-outs, selling it out-right, and refinancing. However, these may not be as cost effective as a complete least transfer. Not only that, some lease companies or lease contracts may have contingencies upon these.

How Should I Evaluate My Lease Situation?

Before you decide if a lease takeover is for you, you will need to evaluate your current situation. First you need to calculate the cost of each of your options mentioned above. Some find that a lease buy-out will cost more than refinancing or selling nit out-right.

Every case is different. It would be a wise idea to talk to a specialist about your current situation. Here are some things to consider:

• Is the vehicle over the mileage listed on the lease?
• Would it be more cost effective to purchase the vehicle out-right at the end of the lease?
• If your lease at the beginning if the lease term? (This may be a good selling point.)
• Is the vehicle damaged in any way?
• Is your payment too high for your budget or for current average prices?
• Could you refinance for a lower monthly payment?

I Have Upgraded the Vehicle with Aftermarket Parts, Now What?

If you have added new premium upgrades such as a sound system, trunk mounted speakers, chrome details, elite rims, or other high end market stuff, you may not recoup that investment when you sell or transfer your lease. Not many buyers consider extra upgrades a value. Unless you find a buyer who is willing to pay extra for your investment, it might be a better idea to remove those items and sell them separately online.

Exiting a Lease Takes Patience

It would be a wise idea to find a person who is willing to assume your lease and take over payments if you can avoid the high penalties. If you can find another cost effective method for exiting your lease, then you may be able to avoid more problems than those which would occur if you simply cannot afford your monthly payments.

Transferring a lease takes time and patience. Remember to read through your paperwork well, and begin the process as soon as possible if you know that you will need to take this action. You might find the road a little easier if you obtain some information from your leasing company and from a third party who has the background in selling a lease.