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3 minutes read. Published October 13, 2022
Authored by Rebecca Betterton Written by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely borrowing money to purchase a car.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been editing and writing for Bankrate from late 2021. They are committed to helping readers feel confident to take control of their finances with precise, well-researched and researched facts that break down otherwise complicated topics into bite-sized pieces.
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As the car market struggles to keep pace with inventory issues and a lack of cash, taking over lease payments can be an ideal option to get behind the wheel. Third-party websites can help you meet someone who is looking to get their lease terminated early. Since leases generally run for about two or three years you may need to purchase the car — or return it to the dealer — before you’re prepared. Would a lease-to-own takeover be an ideal idea?
Based on your situation the possibility of taking over someone else’s car lease is a good option as it could have lower monthly expenses and expanded vehicle options compared to buying.
Benefits of a lease takeover Assuming a car lease has clear benefits in the event that you want to take a test drive in a brand new vehicle for a brief period. Vehicle availability With car buyers keeping their new cars for the amount of 6.5 years, according to the most recent data from and leases usually lasting two or 3 years, it could be difficult to find an affordable price on an older model that isn’t the model year currently in use. But it is likely you’ll find a reasonably new vehicle through an assumption of lease. A short-term lease whereas the typical leasing contract lasts two or three years the lease assumption expires sooner. This allows you to test drive a car without signing an agreement for a longer period of time. It’s not often you can discover this type of timing at traditional leasing outlets. Cash incentives A lot of drivers want their car off their hands in a lease assumption scenario. It is not unusual for the first leaseholder to offer cash incentives. They might also offer the possibility of covering any transfer fee a leasing company charges and could reduce the cost by hundreds of dollars. Talk with the leasing company to get the best deal. Pay less monthly if the original lessee has excellent credit and has made a substantial down payment, it is likely that their monthly cost is not as high. Since you will take on that monthly payment as-is and will be able to benefit from the conditions. Disadvantages of a lease assumption Car payments that are low and the flexibility of leasing a car for a short period of time could seem appealing, but before you assume a lease, be aware of the possible risks. No renegotiation The lease you take over will be the one you get. It is not possible to negotiate the lease terms that the original lessee agreed to. That means that if your credit score was poor it could result in you being stuck with a higher monthly payment than you could have received if you had signed an agreement to lease your own. It is also possible to have the option of a higher purchase price at the end of your lease than what you’d otherwise pay. A limited mileage lease means that you have to stick to the original mileage limits on the car lease agreement. If you exceed this limit, it could be costly -Overages can vary from 10 to 25 cents per miles. Try and estimate how many miles you’ll drive prior to the lease expiring to ensure that you don’t need to pay a fine. And of course, be sure that the lessee has not already paid charges for mileage overage. High wear-and-tear expenses if the previous owner did not take care of the car, you’ll be stuck with the wear-and-tear costs. Similar to any used car, see the vehicle in person and have it checked prior to signing over the lease. If the vehicle is showing substantial wear, ask whether the original leaseholder will pay for the costs as part of the transfer. Additional charges There are three primary fees that come along with a lease takeover the transfer of lease or credit application . According to Swapalease, you can expect these charges to cost anything between $395 and $895. Be sure to find out the details of these charges before agreeing to an assumption of lease. How to assume a car lease If you’ve decided to take on the lease, you have many options available. Lessees who want to hand their leases to others can go to websites such as Swapalease, LeaseTrader and QuitALease to find someone who can take on this role. You can also contact your leasing firm. They might be able to provide recommendations or connect you with a potential lessee. Although the terms of the lease will already depend on the original credit of the lessee, your credit will still be considered. You should be prepared to bargain with the lessee about any potential cash rewards and bonuses. The bottom line If you decide to take over a lease, bear in mind that the liability you are taking over is higher than that of a typical auto lease because of the background of the initial driver. The lease will be liable for the rest of the payments on the car as well as any damages or charges due to the original leasee. Shop around and compare different options before signing any agreements. Find out more
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Writen by Auto Loans Reporter
Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers with the ways and pitfalls of taking out loans to purchase an automobile.
Edited by Rhys Subitch Edited by Auto loans editor
Rhys has been writing and editing for Bankrate since late 2021. They are committed to helping readers to take control of their finances with concise, well-researched and well-written facts that break down otherwise complex topics into manageable bites.
Auto loans editor
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