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Pros and cons of taking over car lease payments Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial choices by offering you interactive financial calculators and tools, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make informed financial decisions. Bankrate has agreements with issuers, including but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Profit The deals that are advertised on this site come from companies who pay us. This compensation may impact how and where products appear on the site, such as such things as the order in which they may appear in the listing categories in the event that they are not permitted by law. This applies to our mortgage, home equity and other home lending products. However, this compensation will not influence the content we publish or the reviews that appear on this website. We do not cover the entire universe of businesses or financial offerings that could be accessible to you.



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3 min read 13th October, 2022.
Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the ways and pitfalls of using loans to buy the car they want.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are committed to helping readers feel confident to control their finances through providing concise, well-researched, and well-studied data that breaks otherwise complex subjects into digestible pieces.









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The car market is struggling to catch up with supply issues, taking over car lease payments can be a viable option to get behind the wheel. Third-party websites can help you find someone who wants to get their lease terminated early. Since leases typically last for two or three years, you might need to buy the vehicle or give it back to the dealer before you're in a position to do so. Do you think a lease takeover is the right choice?
Based on your situation, borrowing someone else's lease is a good option as it could come with lower monthly costs and expanded vehicle options compared to buying.


Advantages of a lease takeover assuming a lease has clear benefits for those who want to purchase a more modern car for a short period. Car availability: With car buyers staying with their brand new cars for the typical 6.5 years, according to the latest data from , and leases usually last for two or three years, it can be challenging to find the best price for the latest model of car that's not the model year of the current year. It is possible that you'll find a reasonably new car through the lease assumption. Short-term leases While the average leasing contract lasts two or three years and a lease assumption is typically earlier. This allows you to test drive a car without having to sign an extended-term contract. It's rare to discover this type of timing at traditional leasing companies. Cash incentives Many drivers want their car off their hands in the event of a lease assumption. It is not uncommon for the original lessee to provide cash incentives. They might also offer to pay for any transfer fees a leasing company charges and could save you thousands of dollars. Discuss with the leasee to negotiate the best deal possible. Pay less monthly if the original lessee has excellent credit and has made a significant down payment, it is probable that the monthly cost is low. Since you will be taking on the monthly payment as-is and will be able to benefit from the conditions. Disadvantages of a lease assumption The low car payment and the flexibility offered by a short-term car lease may be appealing but prior to signing the lease, you must be aware of the potential dangers. A no-renegotiation lease The lease you take over is the lease you sign. You will not be able to negotiate lease terms the original lessee signed. That means that if their credit score was not high and you were unable to negotiate, you could be in a position to be paying a greater monthly payment than you could have received if you had signed a lease yourself. You may also have an increased lease-end price than what you'd otherwise pay. Limited mileage : Taking over a lease means you need to stick to the mileage limitations in the lease agreement. Going over this limit could be costly -Overages can vary from 10 to 25 cents per mile. Estimate the number of miles you'll travel prior to the lease expiring to make sure you won't have to be penalized. Of course, you must be sure that the lessee has not already paid costs for mileage overage. High wear-and-tear expenses if the previous owner did not take care of the car, you'll be responsible for the wear-and-tear fees. Similar to any used car take the vehicle to inspect it in person and have it checked before you sign a contract to take over the lease. If you notice an excessive amount of wear, check whether the previous lessee will cover the fees as part of your transfer. Additional fees There are three main charges that are associated when you take over a lease: lease transfer, credit application and . According to Swapalease the possibility is that these charges to cost anything from $395 to $895. Make sure you are aware of the details of these charges before agreeing to the lease assumption. How to take over a car lease If you've taken the decision to take over an agreement to lease, there are many options available. Lessees who wish to hand their leases to others can go to websites like Swapalease, LeaseTrader and QuitALease to locate someone who will take on this role. It is also possible to reach out to the leasing company. They could be able offer suggestions or connect you with a potential lessee. Although the terms of the lease will determine by original lessees' credit but your credit will be considered. Make sure you negotiate with the lessee for any potential cash bonuses as well. The bottom line If you decide to take over a lease, keep in mind that the responsibility that you take on is more than an ordinary auto lease due to the history of the original driver. The lease will be liable for the rest of the charges on the car as well as any damages or costs that were incurred by the initial lessee. Look around and evaluate different options before signing any agreements. Learn more


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Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the ways and pitfalls of using loans to buy an automobile.



Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping their readers feel confident to take control of their finances through providing concise, well-researched and well-written information that breaks down complicated topics into bite-sized pieces.






Auto loans editor




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