Save Money On Your Next Car By Assuming Someone’s Car Lease

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Photograph Courtesy Of Justin Hyde
Photograph Courtesy Of Justin Hyde

Because of the ways our cities and suburbs are designed, many people need a car to commute from place to place in their local area. Cars are very expensive and renting a car every time that you need one is rarely a feasible solution. Some people have found that they are able to save money on the cost of having a car by assuming someone else’s car lease, which allows them to obtain a car with low monthly payments without a down payment. Here are some things that you need to know if you consider assuming an existing car lease to reduce the cost of owning a car.

Why People Give Up Their Car Leases

There are many reasons why someone may decide to let someone else assume their car lease. They may not like the car or the way it handles and want to get something else. They may have lost their job and can no longer afford the lease payments and other costs of owning a car. Another reason may be that they will be unable to drive the car for an extended period of time and see no reason to pay for the car if they cannot use it. Having someone else assume their car lease allows them to correct their situation without incurring significant penalties.

How The Process Works

You can only assume the car lease of another person if the financing company that extended the original lease allows it. Once the lease has be transferred into your name, you are responsible for making the lease payments for the remainder of the lease term. When the lease term is up, you have the option of purchasing the car under the terms of the original lease or releasing the car and obtaining some other form of transportation. Make sure that you do not violate any of the provisions of the lease, such as going over the allotted number of miles or damaging the car, or you will find yourself making a hefty payment to the company holding the lease if you decide not to buy the car.

Where To Find An Available Car Lease

If you do not know anyone that has a car lease available for you to assume, you are not out of luck. There are companies available that match up people that want to get out of their lease with people that are interested in assuming someone else’s car lease, such as LeaseTrader.com and SwapALease.com. In most cases, the warranty that is available for the car through the manufacturer or the dealership is still valid even after the lease is transferred. The company will display a picture of the vehicle available along with the monthly cost of the lease and the number of months remaining in the lease term to make it easy for interested consumers to find the vehicle that is right for them.

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2 Responses
  1. Why would you want to assume someone else’s lease when a car lease is a really disadvantageous financial agreement? I’ve always heard that a lease is the worst way you can gain access to a car. You might be better off buying a really cheap car and running it into the ground then buying a new one. Your thoughts?

    1. There are many reasons why assuming a car lease could be a better choice than buying a cheap used car.

      Many people want a car that is dependable. With a cheap used car, you may find yourself paying more for repairs to the car than you actually paid for the car. Purchasing a cheap used car may be wasted money if it breaks down and there is no warranty. Running it into the ground can be accomplished more quickly than you would think, especially if the previous owner neglected to maintain the vehicle properly. Assuming a lease agreement for a newer car under warranty reduces the risk of the car breaking down quickly and gives you an option for repairing the car that will not cost you a lot of money out of pocket.

      Assuming the lease of a two or three year old vehicle allows you to avoid having to pay a down payment for a fairly new car. Lease sellers are often in a difficult situation and will offer monetary incentives to someone willing to take over a lease. There are some transfer costs for the lease, however, you can negotiate to have the seller pay these fees.

      Cars that are less than five years old can be difficult to find on a used car lot. The average age of cars and light trucks currently in operation in the U.S. has increased to 10.8 years, according to Polk, a leading global automotive market intelligence firm. With the used car market still tight from the recent recession, you may have better luck getting the car you want with a lease assumption.

      Assuming a lease is also a good idea if the person only wants the car for a short period of time. If someone is on assignment in a different city with little public transportation, assuming a lease allows them to have a reliable vehicle that they do not have to ship or sell when their assignment is up. Lease assumptions are also good for those who would like to “test-drive” a certain type of car for a while before purchasing one of their own, as they can see how the car holds up over time and how well they like how it handles.

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