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3 min read 13th October, 2022.
Authored by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the ins and outs of securely borrowing money to purchase the car they want.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers to control their finances through providing precise, well-researched and researched data that breaks complex subjects into digestible pieces.
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As the car market struggles to catch up with inventory issues, taking over car lease payments might be a good alternative to take the wheel. Third-party websites can help you find someone who wants to get their lease terminated early. However, since lease agreements generally run for two or three years, you may have to buy the car — or give it back to the dealer — before you’re ready. Do you think a lease takeover is the right choice?
If your circumstances permit depending on your circumstances, the option of taking over someone else’s lease could be a wise move because a lease could come with lower monthly costs and expanded vehicle options compared to purchasing.
Advantages of leasing a takeover assuming a lease has clear benefits for those who want to take a test drive in a brand new vehicle for a brief period. Car availability: With car buyers staying with their brand new cars for the amount of 6.5 years, according to the most recent figures from and leases usually run for two to three years, it can be difficult to find an affordable price on the latest model of car that’s not the current model year. However, it’s likely that you can get a fairly new car through the lease assumption. Short-term leases While the average leasing contract lasts two or three years and a lease assumption is typically earlier. This lets you test drive a vehicle without signing a longer-term contract. It is rare to get this kind of timing through traditional leasing companies. Cash incentives A lot of drivers want their vehicle off their hands in a lease assumption scenario. It’s not uncommon for the first leaseholder to offer a cash bonus. They might also offer to cover any transfer fees that a leasing company may charge, which can save you many hundreds. Talk with the leasing company to get the best deal. Reduced monthly payments If the original lessee has excellent credit and has made a substantial down payment, it is probable that the monthly payment isn’t too high. Because you’ll be taking on the monthly payment in the same way and will be able to benefit from the terms. The disadvantages of leasing Car payments that are low and the flexibility of a short-term car lease may seem appealing but prior to signing the lease, be aware of the potential dangers. A no-renegotiation lease The lease you take over becomes the contract you receive. You won’t be able to negotiate lease terms the original lessee had agreed to. If their credit score was low it could result in you being stuck with a higher monthly payment than what you could have received if you had signed an agreement to lease your own. It is also possible to have the option of a higher purchase price at the end of your lease than you would otherwise get. A limited mileage lease means that you need to stick to the original mileage limits in the lease agreement. If you exceed this limit, it could cost you -Overages can range from 10 to 25 cents per mile. Make a rough estimate of the number of miles you will drive prior to the lease expiring to ensure you don’t have to pay a fine. Of course, you must be sure that the lessee hasn’t already incurred charges for mileage overage. Costs for wear and tear that could be high if the previous owner did not keep the automobile in good condition, you will be liable for wear and tear costs. Similar to any used car take the vehicle to inspect it in person and have it examined before you agree to take to the leasing. If there is substantial wear, ask if the original lessee will cover the fees in the course of your transfer. Additional fees There are three major charges that are associated with a lease takeover lease transfer as well as credit application . According to Swapalease, you can expect these charges to cost anything between $395 and $895. Make sure you know the specifics of these fees prior to signing your lease’s assumption. How to assume the car lease made the decision to assume the lease, you have several options to choose from. Lessees who want to hand over their leases turn to websites such as Swapalease, LeaseTrader and QuitALease to find someone to assume this role. You can also contact your leasing firm. They could be able provide recommendations or to connect you with a prospective lessee. Even though the terms of the lease will already be determined by the initial lessee’s credit but your credit will be considered. Be prepared to bargain with the lessee about any cash bonus opportunities and bonuses. The main thing to remember is that if you do decide to assume the lease, bear in mind that the liability you’re taking on is greater than a typical auto lease because of the past of the initial driver. You will be responsible for the remaining charges on the car, including any damage or fees incurred by the original lessee. Compare and shop around for alternatives before signing any agreements. Find out more
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Writen by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the details of borrowing money to purchase a car.
The edit was done by Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate since late 2021. They are dedicated to helping their readers to manage their finances by providing clear, well-researched facts that break down otherwise complex topics into manageable bites.
Auto loans editor
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