Information about early lease termination, lease assumption and leasing

Lease takeover

A lease takeover is when an outside party takes over a lease from the original lessee under the terms and conditions outlined in the original contract. Typically, a lease takeover means the original lessee walks away from the lease without any future liability and the new lessee assumes all liability for the lease contract.

There are limited other options for early lease termination:

The first option is to simply turn the vehicle back in early to the dealership. This option is expensive, though, because the lessee is financially responsible for all remaining payments in addition to any penalties assessed for turning in the vehicle early.

The second option is the roll the remaining monthly payments into a new lease, but this can be extremely expensive as well. In this scenario, the lessee is still financially responsible for the old payments, as well as the payments for the new vehicle. So, it is possible that the lessee ends up paying twice the market rate for the new vehicle.

The third option is voluntary repossession. In this type of situation, the lessee simply requests that the lessor pick up the vehicle prematurely.  This is a form of repossession, though, and it can be extremely damaging to one’s credit.

The final option is lease takeover at Swapalease.com.  Lease takeover allows a lessee to break his/her lease early without suffering any of the penalties otherwise associated with early lease termination.  Swapalease.com will help the lessee to find a buyer for his/her lease and walk them through the lease takeover process. It is simply a small cost to both the buyer and seller.

Important Details

Up-front costs:  Lease contracts typically require up-front costs to be paid by the lessee. These costs might include a down payment, an acquisition fee, a refundable security deposit, one month’s payment, registration fees, and/or taxes.

Monthly payment:  The monthly payment is the payment made by the lessee each month to the lessor in exchange for use of the vehicle.  The payments are made up of the vehicle’s depreciation over the term of the lease, interest charged by the lessor, and any taxes that may apply.  The payment is negotiated up front.

Early Lease Termination: A few methods of early lease termination exist.

1. Return the vehicle early to the lessor: In this type of situation, the lessor will require you to pay any remaining payments along with early lease termination fees, which can cost thousands of dollars.
2. Voluntary repossession: There are no up-front costs, but the lessee’s credit will be severely damaged, as this is considered a form of repossession.
3. Lease assumption: By finding someone to assume your lease payments, you can walk away from your lease without any significant up-front costs. Click here to find our more information.

Lease end date:  It is important to find out a drop-off point for your vehicle that is close to you and approved by the lessor. At the time of drop off, you will be required to pay any lease-end costs before the transaction is complete. These costs may include excess mileage fees, excess wear and tear fees, disposition fee, and any other lease-end costs.  It is recommended that you have the vehicle inspected and repaired, if necessary, prior to vehicle drop-off so that you can avoid pay premium prices at the dealer.

Mileage:  Most leases limit the number of miles that can be put on a Nissan lease vehicle each year. This range is typically between 10,000 to 15,000 miles per year.  Extra mileage allowance can be purchased at the beginning of the lease. Otherwise, each extra mile is billed to you at a premium price at lease end.  Lease-end excess mileage fees typically range from $.10 to $.20 per mile.

Excessive Wear: Lease contracts typically limit wear and tear to the vehicle over the term of the lease.  The lessee will be billed for any excess wear and tear at a premium price.  check out www.swapalease.com

See Also:
Lease Return
Lease Swap
Lease Takeover
Lease Termination
Lease Toyota
Lease Trade
Lease Trade-In
Lease Trade-In Deals
Lease Trader
Lease Trading
Lease Transfer
Lease Vehicle Transfer
Leased Auto Transfer
Leasetrader
Leasing
Leasing Agent
Leasing Car
Legal Ways Out of a Car Lease
Long Term Car Rental
Porsche Leasing