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3 min read published on October 13, 2022.
Authored by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the details of borrowing money to purchase the car they want.
Editor: Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since the end of 2021. They are committed to helping readers to control their finances with clear, well-researched data that breaks complicated topics into bite-sized pieces.
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As the car market struggles to keep pace with inventory issues, taking over car lease payments can be a viable alternative to take the wheel. Third-party websites can assist you connect with someone looking to end their lease early. Since leases typically last for two or three years, you may need to purchase the vehicle or give it back to the dealer before you're ready. Is a lease takeover an ideal idea?
If your circumstances permit, taking over someone else's car lease can be a smart move because a lease could come with lower monthly costs and a wider range of vehicle options to purchasing.
Benefits of a lease takeover A car lease will have clear advantages when you are looking to take a test drive in a brand new car for a short period. Car availability: With car buyers holding onto their new vehicles for the average of 6.5 years, as per the most recent figures from and leases generally last for two or for three years. It may be difficult to locate an affordable price on the latest model of car that's not the model year currently in use. However, it's likely that you'll find a reasonably new car through an assumption of lease. A short-term lease whereas the typical leasing contract lasts two or three years the lease assumption expires sooner. It allows you to try out a car without signing an agreement for a longer period of time. It's rare to find that timing available through traditional leasing companies. Cash incentives A lot of drivers want to take their vehicle off their hands in the event of a lease assumption. It's not uncommon for the first leaseholder to offer cash incentives. They may also offer the possibility of covering any transfer fee a leasing company charges and could reduce the cost by thousands of dollars. Discuss with the leasee to negotiate the best deal possible. Lower monthly payments If the lessee in question has great credit and has made a substantial down payment, it is likely that their monthly cost is low. Since you'll be taking on the monthly payment as-is, you will benefit from the conditions. Advantages of a lease assumption Car payments that are low and the flexibility of a short-term car lease may be tempting but prior to signing the lease, you must be aware of the potential risks. There is no renegotiation of the lease. The lease you sign is the lease you get. You will not be able to negotiate the lease conditions that the initial lessee signed. If their credit score was low, you might be forced to pay a higher monthly payment than what you would have received getting a lease yourself. There is also the possibility of a higher lease-end purchase price than you would otherwise get. Limited mileage : Taking over a lease means you need to stick to the mileage limits originally set stipulated in the car lease agreement. Going over this limit could cost you a fee -Overages can range from 10 to 25 cents per mile. Estimate the number of miles you'll drive prior to the lease expiring to ensure that you don't need to pay a penalty. Of course, you must make sure the original lessee hasn't already been charged costs for mileage overage. Costs for wear and tear that could be high if the previous driver did not maintain the vehicle, you will be responsible for the wear-and-tear costs. Like any used vehicle take the vehicle to inspect it on the spot and ask to have it examined prior to signing over the lease. If there is an excessive amount of wear, check if the original lessee will pay for the costs in the course of your transfer. Additional charges There are three major fees associated when you take over a lease: the transfer of lease as well as credit application . According to Swapalease the possibility is that the cost to range between $395 and $895. Make sure you know the details of these charges before agreeing to the lease assumption. How to assume a car lease If you've decided to take on the lease, you have a few options available. Lessees who wish to hand their leases to others can go to websites like Swapalease, LeaseTrader and QuitALease to locate someone who will take on this role. It is also possible to contact your leasing firm. They may be able to offer suggestions or in establishing a relationship with a potential lessee. Even though the lease's terms will already determine by initial credit of the lessee, your credit will still be taken into consideration. Make sure you discuss with the lessee any potential cash bonuses and bonuses. The final word: If you do decide to assume the lease, bear in mind that the responsibility you are taking over is more than an ordinary auto lease due to the history of the original driver. You will be responsible for the remaining costs of the vehicle and any damage or charges that were incurred by the initial lessee. Look around and evaluate different options prior to signing any contracts. Learn more
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Writen by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ways and pitfalls of using loans to buy a car.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate since the end of 2021. They are dedicated to helping their readers to manage their finances with concise, well-researched and well-written information that breaks down complicated topics into bite-sized pieces.
Auto loans editor
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