Debt Free

If you're leasing a vehicle, or looking at doing so in the near future, you may want to investigate one of the companies that allow you to do a lease take over. A lease take over is just what it sounds like, taking over someone else's existing auto lease. It's also great if you're in a lease you'd rather not keep. You can have someone else take over your lease and walk away, in many cases without paying an early termination or any other fee to the leasing or finance company.

On the way in this morning I sat behind a brand new, back convertible Bentley Continental. You know, the one with the 550hp twin turbo 12 cylinder. While the guy driving that car was probably not all that concerned with the recent increases in the price of fuel unless it affects his business or investments, he's probably one of the few to share that sentiment. Most of us are pulling up to the pump and trying not to retch into our cup holders as we're confronted by the most recent fuel price increase.

If this describes you, and you're leasing a vehicle, investigating one of the firms that allows you to either swap your lease to drive a different vehicle, or just get our of your current car (so you can take the train to work) may be worth doing. One benefit for those who'd like to get into a newer vehicle, is that in many cases you can do it with no money down, and a comparatively low payment. It's kind of the automotive equivalent of buying a distressed property. Here's how the whole lease take over process works.

Getting out of an existing auto lease.
You go to one of the companies that specialize in lease take overs and sign up for their service. You'll typically pay a listing fee, just as you would if you ran a classified ad to sell your vehicle. When an interested lease assumer decides they love your old car and want to take over your lease, they're credit checked to ensure they're able to take over the lease. Depending upon the service, the buyer and seller will then usually negotiate the applicable terms and come to an agreement. In many cases it works out very well for the one taking over the lease because the original lease holder has offered some sort of incentives. Even if they don't, they have already paid all the fees and deposits at the inception of the lease, so the party taking over the lease can just step in and begin making payments.

It is also great for the original lease holder because they can get out from under a lease that they can no longer afford, or a vehicle that no longer suits their needs, without paying an early termination fee to do so. Those fees can be oppressive, and a huge barrier to getting out of lease early. Letting someone else take over your existing lease will avoid the whole issue, as the lease isn't terminated, just “borrowed” until the term is completed.

Taking over an existing lease.
Just as getting the drain of a vehicle that you can no longer afford the lease payment on, or is killing you at the pump can be a weight releasing experience, so can stepping into a vehicle by just assuming the payments. A further benefit is that, since you'll only be assuming the existing lease, the term is in most cases fairly short. If you want to “try before you buy” this may be just the ticket. You can make relatively small monthly payments for terms of as short as 4 – 6 months before deciding if the vehicle is right for you. There's nothing like living with a vehicle for an extended time to make sure it's really the car that you'd like to be driving. You just can't make that evaluation in the 15 minute test drive you get at the dealership.

In some cases the lease listing agency will charge a transaction fee, and in other cases, they'll only charge a listing fee. In addition you may have to pay a fee charged by your leasing company, but in many cases these fees may be avoided. Remember that many lease terms, such as the monthly payment and allowable mileage are set in the lease terms and cannot be changed, although other terms can be negotiated between the assumer and the assumee, such as additional funds or assets that can be included in the transaction. Take note that many of the vehicles listed are fairly expensive vehicles that people are no longer in a position to afford. In addition, some of the vehicles have higher mileage so one of the reasons that people were getting out of them is that in order to stay within the maximum mileage, they can only average 800 – 900 miles per month for the remainder of the lease. Some people cannot do this.

Looking at some of the sites that specialize in the lease transfer market, I've seen some interesting vehicles such as a:

2003 Acura RSX - $145/ mo for 17 months – nice, 4-cylinder (pretty good gas mileage) performance coupe.
2007 Ford Focus – $229/ mo for 18 months
2008 Mercedes Benz R350 (Mercedes Mini-Van / SUV) $380/ mo for 26 months
2006 Mercedes Benz SLK-350 $541/mo for 14 months – Want to drive a small, but pretty quick Mercedes convertible for the summer? Here you go.

The whole lease take over marketplace is one that many people just aren't aware of. Since awarenes of the secondary market is so low, most people don't think about doing this when they're either saddled with a vehicle that they'd rather be rid of, or when looking for a new one. Taking over a lease or giving one up may not be the best choice for you, but it bears looking into if you're in either position. One of the leaders in the lease trading or take over industry is swapalease.com. You can find out more about the process, and see if it is an alternative that could work for you here. They've been featured in many national publications and are Better Business Bureau accredited.