How to Take Over a Car Lease

If you are planning to lease a car, you consider whether its wise to take over a car lease first. Taking over a car lease is a relatively easy thing to do with little paper work and can lead to savings. For one, you do not have to make a down payment to the car leasing company. Next, you are not stuck with a long lease period. By taking over a car lease, you get to test drive a car for a couple of years before turning it in. This way you can try new cars all the time or more frequently than if you opt for a standard car lease.

Step 1- Check the Condition of the Car

Check if the car is in good condition. If you live far away from the car, get a third party inspector to conduct the inspection for you. Once you are satisfied that the car is in good shape, proceed to the next step.

Step 2 – Approval of Lease from a Leasing Company

The first step (after checking the condition of the car) is to obtain pre-approval of the lease from a leasing company. This process is just the same as obtaining a pre-approval for a home loan. You will be required to fill in salient details and if your credit rating is good, you will be able to get the pre-approval. Please note that it is important to have a good credit rating to obtain a lease on transfer as well.

Step 3 – Transfer Existing Car Lease

Next, you need to scout around for some one who wants to transfer an existing car lease. There are many companies and brokers that facilitate this process. View photos of cars and models you are interested in and zero in on the car that suits you the most.

Once you have a potential car for lease take over, check the remaining mileage the lease offers and see if this suits your driving habits.

Taking Over Car Lease

Get the seller of the lease to contact the car leasing company and inform them that they would like to transfer the lease to you.

The car leasing company or the dealer will then contact you and send both you and the seller copies of contracts that you have to sign.

Once that is done, the dealer will contact you again asking you to assume the lease. Once you do so, the seller will be informed of the fact and will hand over the car to you.

Before all this happens make sure you do your due diligence in detail. There is no point in ruing the deal after the transfer of the lease is through. It is before you contact the dealer that you need to verify the mileage left on the lease and the condition of the car you are planning to lease.

Unlike a normal lease that lasts for five years and requires a down payment, a lease transfer can be obtained for two years or sometimes even one year. There is no down payment either. So you save a lot of money. However, the leasing company has to agree to the transfer of the lease. This is where your credit rating comes into play. Once the leasing company agrees to let the lease be transferred, your deal is a s good as through.

Some leasing companies hold the original lease holder responsible for the payments due even after the lease has been transferred. Though this is good for the buyer of the lease, it is not such as good deal for the seller of the lease.

Some lease companies also do not let the transfer take place toward the end of the lease period or at the very beginning of the lease period. Do check these details before you ask for a transfer of the lease in your name.