Taking over car lease payments is a much better option if you are considering getting a new car but do not have the finances to take a full-term lease. It offers you a chance to drive a newer model without the heavy financial burden that traditional leasing carries with it. If you are also interested in leasing but want to learn more about the benefits and risks associated with it, visit eAutoLease. With an in-depth look into lease swapping and why it’s a viable option, you can look forward to making a better deal.
These days, as the car market is struggling to catch up with inventory issues, taking over car lease payments may be a smart option to get a vehicle of your choice. With a little homework and attention to detail, you can save on your next car lease and enjoy driving the car you have always wanted to.
What Is a Lease Takeover?
A lease takeover involves a lease transfer, from the lease seller to the lease buyer. If the seller wants to get out of the lease early, the lease buyer can inherit the pre-existing conditions of the lease along with the car.
Depending on the leasing contract, the current condition of the car, the terms of the lease, and the terms the lease-seller is offering, a lease takeover may provide buyers with the cheapest option to suit their needs.
Remember, a lease takeover may be a great way to save on your next car lease, but they can cost you more if you are not careful. Learning about lease takeovers and their pros and cons is essential before you make a decision that is really a money saver.
Read more: How Much Does It Cost to Lease a Car?
Advantages of a Lease Takeover
Assuming a car lease offers several benefits if you are looking to drive a newer model car for a short period. Other benefits include:
Vehicle Availability
Statics report that most car buyers hold on to their new vehicles for an average of 6.5 years, and leases typically last for two-three years. It often becomes a challenge to find a good deal on a newer car that is not the current model year. A lease takeover gives you a chance to get a relatively new car without buying or starting a new lease.
Short Term Lease
An average leasing contract is at least two or three years, but a lease assumption ends sooner. During this short period, you can test drive a car without binding yourself for the long term and make up your mind about what you want. Traditional leasing outlets rarely offer this opportunity.
Cash Incentives
Sometimes sellers are eager to get rid of their vehicles, and lease assuming makes it easy for them. To sweeten the deal, they may offer a cash bonus or cover the transfer fees a leasing company charges, helping the buyer save hundreds of dollars. Buyers can negotiate with the lessee to get the best deal possible.
Lower Monthly Payments
If the original lessee has good credit and made a hefty down payment, chances are their monthly payment is low. Buyers can benefit from that lower monthly payment and improved lease terms.
Disadvantages of a Lease Assumption
Low monthly payments and flexibility of a short-term lease may sound tempting, but this is not all. Before making up your mind about a lease assumption, keep its potential risks in mind.
No Renegotiation
The lease you are taking over is the lease you will get. There will be no renegotiation of the lease terms the original lessee agreed to. It means if the original lessee had a low credit score, you may be stuck with a higher monthly payment than you would have received getting a lease yourself. You may also have a higher lease-end purchase price than you would get if you had made the deal yourself.
Limited Mileage
You will have to stick to the original mileage limits on the car lease agreement as you are taking over a lease and can’t do much about it. Going over this limit can be expensive, as you may end up paying 10 to 25 cents per mile. Try and estimate how many miles you will drive before the lease expires to ensure you don’t have to pay a penalty. Also, check if the original lessee has not already incurred mileage overage fees.
Potentially High Wear and Tear Costs
If you are not careful and take on a vehicle that was not maintained by the lessee, you will be stuck with the wear and tear costs. Check the vehicle in person or have it inspected by a third party before agreeing to take over a lease. In case of significant wear and tear, check if the original lessee is ready to cover the fee as a part of your transfer.
Read more: What Is The Residual Value of My Lease
Additional Fees
Lease transfer, credit application, and disposition fees are the three primary fees that accompany a lease takeover. These fees can be anywhere from $395 to $895. Find out the specifics of these fees before agreeing to the lease assumptions.
How to Assume a Car Lease
If you have decided to assume a lease, there are a few options.
- You can check out websites where lessees, who want to hand over their leases, search for buyers.
- You can also reach out to the leasing company. They may be able to give recommendations or connect you with a potential lessee.
Remember, even though the terms of a lease are already determined by the original lessee’s credit, your credit will also be scrutinized for lease takeover. Don’t hesitate to negotiate with the lessee for any potential cash bonuses.
A lease takeover has many moving parts and comes with lots of responsibility too. You must be willing to do the leg work before you could reap its benefits. Learning how it works and comparing different options is necessary before you sign a lease agreement. eAutoLease.com offers amazing experiences for people seeking more information about leasing, lease takeover, and what they can do to find exactly what they need. With the right advice about vehicles and payment options, you can look forward to a lease that best fits your needs.
