Information about early lease termination, lease assumption and leasing

Can I Transfer an Auto

Can I transfer an auto lease: Yes you can!

A lease assumption is the process through which an individual assumes, or takes responsibility for, an in-process lease from the current lessee in a lease contract.

Assuming a lease benefits the ‘buyer” because he or she is able to assume a short term lease with no money down. In some situations, the seller may even be willing to offer a cash incentive to the buyer to assume the lease. This process can save the buyer thousands of dollars.

Lease assumptions can be very beneficial to sellers as well. There are many reasons why a seller might need to exit a lease before the scheduled lease-end date. These reasons might include change in family size, change in job, or change in lifestyle. Traditional forms of early lease termination can be extremely expensive and potentially damaging to one’s credit. Lease assumptions are a cost effective, simple way for sellers to exit their leases early.

Important Factors

From a buyer’s perspective, there are several important factors to consider before moving forward with a lease assumption:

Monthly Payment - Is the price lower than what a new lease would bear? If not, remember that you are not required to put any money down on this lease.

Cash Incentive - Sellers will often provide Buyers with cash incentives to make their leases more attractive. These incentives can be one month's payment, or thousands of dollars in cash. Sometimes you will see a lower monthly payment listed which includes the cash incentive which means the actual payment may be higher than listed. To be certain, consult the Seller and ask this question directly before proceeding.

Location - Is the vehicle in proximity to you? If not, there are a number of options. Some people prefer to pick the vehicle up themselves by flying or driving to the car and taking it home. If neither of these options works, a vehicle can be shipped nationwide for between $500 to $1000 ore more.

Miles Allowed - This will be different for every vehicle, so you need to pay attention to this. In a case where the Seller has more miles available per month than the average lease, this lease is worth quite a bit more if you plan on driving a lot of miles.

Lease End Buyout - This is the amount the vehicle is available for at the end of the lease (also called the "Residual Price"). Sometimes you can find a great price on a car at the end of the lease. Other times the Lease End Buyout may be very high, which means that it will cost you a great deal more if you wish to buy the vehicle at the end of the lease.

Fees

For both the buyer and seller, the lease assumption process is fairly inexpensive. The following are the buyer-oriented costs typically associated with a lease assumption:

Registration Fee - $24.95 one-time fee to register with Swapalease.com

Credit Application Fee - The leasing company that you are assuming a lease with may charge a credit application fee that may or may not be refundable. This varies by leasing company. For a complete list of fees for leasing companies, click here.

Vehicle Inspection - This charge is not necessary, but often recommended. A 138-point vehicle inspection can be performed on your vehicle prior to lease assumption. The cost for this inspection is $135 and is performed by Crawford Inspection Services. Please note: Vehicle Inspection may be paid by the Buyer or the Seller and is negotiable.

Transportation - Not every lease transfer is going to require special transportation of the vehicle. Transportation charges can range from a few hundred dollars to over a thousand dollars. Transportation quotes should be provided prior to closing your deal.

Vehicle Registration - Once you obtain the vehicle, you will need to register it, no differently than if you were to buy it outright. Contact your local Department of Motor Vehicles to determine what vehicle registration charges may be applicable in your area.


See Also:
Car Lease Assumption
Car Lease Buy Out
Car Lease Buy Outs
Best Auto Lease
Break a Lease
Breaking A Car Lease
Can I Transfer an Auto
Car Lease