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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 your own research and compare data at no cost to help you make informed financial decisions. Bankrate has partnerships with issuers, including but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The deals that are advertised on this site are from companies that pay us. This compensation could affect how and where products appear on this website, for example, for example, the sequence in which they appear in the listing categories, except where prohibited by law for our mortgage and home equity products, as well as other products for home loans. However, this compensation will have no impact on the information we provide, or the reviews that you read on this site. We do not contain the universe of companies or financial offers that may be accessible to you.



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

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers in navigating the ins and outs of securely taking out loans to purchase the car they want.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping their readers gain the confidence to manage their finances by providing precise, well-researched and researched information that breaks down otherwise complex subjects into digestible pieces.









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The car market is struggling to keep pace with supply issues and a lack of cash, taking over lease payments could be a viable alternative to take the driving wheel. Third-party websites can help you meet someone who is looking to get their lease terminated early. However, since lease agreements typically last for two or three years, you may have to buy the car -- or give it back to the dealer before you're prepared. Would a lease-to-own takeover be an ideal idea?
Based on your situation depending on your circumstances, taking over someone else's car lease is a good move because a lease could have lower monthly expenses and a wider range of vehicle options to purchasing.


Advantages of leasing a takeover A car lease is a good option when you are looking to purchase a more modern vehicle for a brief period. Vehicle availability With car buyers holding onto their new vehicles for an typical 6.5 years, according to the latest data from , and leases typically run for two to 3 years, it could be difficult to locate 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 a lease assumption. A short-term lease whereas the typical lease agreement lasts for two or three years and a lease assumption is typically earlier. This lets you test drive a car without signing an agreement for a longer period of time. It is rare to find that timing available through traditional leasing services. Cash incentives A lot of drivers want their vehicle out of their possession in the event of a lease assumption. It's not uncommon for the initial leaseholder to offer an incentive in the form of cash. They may also offer to pay for any transfer fees that a leasing company may charge and could help you save many hundreds. Talk with the leasing company to secure the most favorable deal. Pay less monthly if the initial lessee has excellent credit and has made a significant down payment, it is likely that their monthly installment is low. Because you'll be taking on that monthly payment as-is and will be able to benefit from the terms. Advantages of a lease assumption Car payments that are low and the flexibility offered by the short-term lease on a car may be appealing however, before you sign a lease, be aware of the possible pitfalls. There is no renegotiation of the lease. The lease you assume becomes the contract you sign. You won't be able to negotiate lease terms that the original lessee signed. If their credit score was not high and you were unable to negotiate, you could be stuck with a higher monthly payment than what you could have received if you had signed a lease yourself. It is also possible to have a higher lease-end purchase price than what you'd otherwise pay. Limited mileage Taking over a lease means you be required to adhere to the mileage limits originally set on the car lease contract. If you exceed this limit, it could cost you a fee -the penalties vary from 10 to 25 cents per miles. Try and estimate how many miles you'll drive before the lease expires in order to ensure that you don't need to pay a fine. And of course, ensure that the original leasee has not already paid charges for mileage overage. High wear-and-tear expenses if the previous driver didn't take care of the car, you will be responsible for the wear-and-tear costs. Similar to any used car visit the vehicle on the spot and ask to have it examined prior to signing to the leasing. If the vehicle is showing significant wear, see whether the original leaseholder will pay for the costs as part of your transfer. Additional charges There are three primary charges that are associated with a lease takeover: leasing transfer as well as credit application . According to Swapalease, you can expect the cost to range from $395-$895. Make sure you know the exact details of these charges prior to signing your lease's assumption. How to assume a car lease When you've decided to take on an agreement to lease, there are a few options available. Lessees who want to hand over their leases can use websites like Swapalease, LeaseTrader and QuitALease to find someone who can take on the responsibility. You can also reach out to the leasing company. They may be able to offer suggestions or in establishing a relationship with a potential lessee. Even though the lease's terms will already determine by original lessees' credit however, your credit will be considered. You should be prepared to bargain with the lessee about any potential cash rewards and bonuses. The final word: If you decide to take over a lease, bear in mind that the responsibility that you take on is higher than that of a typical auto lease because of the past of the initial driver. The lease will be liable for the remaining payments on the car and any damage or charges due to the original leasee. Look around and evaluate different options prior to signing any contracts. Find out more


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Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the details of borrowing money to purchase the car they want.



Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers feel confident to take control of their finances through providing concise, well-researched and well-written data that breaks complex topics into manageable bites.






Auto loans editor




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