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Lease Swapping Questions and Answers

tidestertidester Posts: 10,110
Here's where members can ask questions and provide answers about lease swapping.

tidester, host
SUVs and Smart Shopper

Comments

  • sananasanana Posts: 13
    Thanks to tidester for opening this forum.

    I had a question about lease swapping. I am currently considering lease a car. I noticed websites like leasetrade.com, leasetrader.com and swapalease.com which offer me to get into the middle of a current lease. This seems like a very good idea (price-wise), as I get to skip the down payment, part of the monthly payments, and also I get the option of purchasing the vehicle at the end which is usually pretty good (I think?). So why not do it!? Am I missing something here? Are there any particular cons in getting a car from those channels? I really appreciate any help.
  • boomchekboomchek Vancouver, BC, CanadaPosts: 5,099
    If the lease details do make sense then there's nothing wrong with jumping into something like that.

    The problem lately is that current new car leases are much better than they were even a year or so ago, so if you compare same vehicles, you might very well find a lease for the same amount or less on a brand new model than on an older lease that someone is trying to offload.

    If you are going to take over someone's lease, you'll still have to get pre approved for credit and make sure that if a refund of the security deposit is promised, that you check with the lease company if that's the case.

    Also get the vehicle inspected to make sure there's no problems with it that you might be stuck paying for when the lease is up. If the vehicle was in an accident, and was fixed, but the accident history will drop the vehicle's value to less than that of the resiudal amount, then you'll be stuck paying the difference. So make sure the leased vehicle you're taking over had no major accidents.

    Also if you're taking over a lease, and the bumper to bumper warranty is about to, or is already expired, then you'll have to pay for repairs out of your own pocket.

    Just do your diligent research and make sure it's worthwhile for you do do that.

    Good luck.

    2007 BMW 328i Sports Pkg, 1993 Honda Accord EXR (my 33rd car).

  • golicgolic Posts: 714
    Review the Leasing Co's guidelines on wear and tear as well. Will they charge you for every dent and ding, or only if it exceeds a certain size, such as a quarter? Also lead at the provisions on Tire treadware, some leases require you to replace tires if the treadware is below a certain level. Make sure you are not walking into a future excess wear and tear bill!

    Review the mileage allowance and estimate your mileage usage to ensure you will not get stuck with an excess mileage fees. If the lease allows 12K per year and you are in month 22 and there is 28K miles on the car, that only leaves you 8K for the balance of the lease term.

    Find about any sales/property tax implications of the transfer. Some states, may treat this as a transfer for value and subject the transaction to sales tax. And in this case, you will need to write a check.

    Remember, you are assuming a lease, which requires you as the lesee to abide by certain rules and to adhere to specific guidelines. If I purchase a used car, it may not be a big deal that the prior owner did not follow the scheduled maintenance, but it may very well become an issue on a lease when you go to turn in the vehicle.

    I am with boom. Compare the current swap with a new vehicle. If both payments are in the same ball park - you may be better off initiating your own lease.

    Keep us posted.
  • sananasanana Posts: 13
    Thanks guys! A lot of useful information. Actually this was supposed to be my next question that in case I assume someone else's lease, what are the things to look for. very useful info. I think there are a lot to think about and I need to resume my search for a fair deal on a new car, I think it will worth it. Will let you know...
  • blueiedgodblueiedgod Posts: 2,803
    edited March 2013
    Sorry to bring this topic back from dead.

    I am looking to assume a VW lease. The person put $4,000 down and the monthly payment is $170. There is about a year and a half left and 18,000 miles on the lease (1,000 miles per month).

    VW requires $100 credit fee, $350 transfer fee, and there is a $350 disposition fee at the end of the lease, $800 total.

    Is it customary to split the $800, which is what I offered?

    Also, the seller raised concerns about his $4,000 downpayment, which I explained to him, that it is basically sunk costs, since I am not paying it, and VW is not going to give it back to him.

    All I am doing is paying $170/month x 18 months = $3060, plus $400, which is half of the $800.

    Am I being unreasonable?
  • rxbangalrxbangal Posts: 1
    Hi guys,

    Would like to hear from those who have done this-any unforeseeable problems/
    Looks like the main expenses would be a lease transfer fee, application fees for the new lease. i was told a lease end inspection form the seller is important and it provides good and accurate information about the condition of the car-so that we are not passed on a car which has had excessive wear and tear and of course the car history(like a car fax report). And the sales tax has to be paid. Anything else Im missing?

    Any feedback from people who have done it before?
  • educatedbeautyeducatedbeauty Posts: 1
    edited June 2013
    WARNING! I also was going to do a lease assumption on a 2012 BMW 328i 4 Door Sedan through swapalease.com. This car was in a major accident and almost totaled May 10, 2013 and the Carfax report showed no accidents. I emailed CarFax to update the records as this person Nicole Vaskell was trying to commit fraud and never told me about any accidents until AFTER we both signed the last step papers for a lease transfer. She said she was expecting twins and there is no proof she is married nor pregnant. She was in a major accident on this BMW WBA3A5C57CFJ88612. I want to warn anyone who is thinking about taking over her BMW lease on swapalease. I have the complete report from the mechanic.
  • blueiedgodblueiedgod Posts: 2,803
    WARNING! I also was going to do a lease assumption on a 2012 BMW 328i 4 Door Sedan through swapalease.com. This car was in a major accident and almost totaled May 10, 2013 and the Carfax report showed no accidents. I emailed CarFax to update the records as this person Nicole Vaskell was trying to commit fraud and never told me about any accidents until AFTER we both signed the last step papers for a lease transfer. She said she was expecting twins and there is no proof she is married nor pregnant. She was in a major accident on this BMW WBA3A5C57CFJ88612. I want to warn anyone who is thinking about taking over her BMW lease on swapalease. I have the complete report from the mechanic.

    IF you ran CArfax, and they did not show it, they will buy the car back from you.

    http://www.carfax.com/manifest/bbg/register.cfx?source=CFX
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