Car Leases and Lease Transfers
Car leases and lease transfers – Must you opt for a lease transfer and continue the payments or purchase the lease straight-out?
If you have decided to purchase a new auto, you must have analyzed the differing options available, which includes purchasing the car outright, buying the vehicle with a traditional bank credit, or even leasing the car long term. If you have planned to opt for leasing the vehicle, lease takeovers are also a very good option where one could save thousands of dollars.
If you have planned to opt for leasing, you can also look at the choice of purchasing the lease straight-out, instead of taking over someones payments. This final choice is up to you and is subject to on your financial situation and other factors. The best way to determine if to opt for a lease takeover or purchase the vehicle from the leasing company is to take a look at your requirements and financial circumstance. You can in this case decide whether you would like to resume with the monthly payments, or cover the balance due in one lump sum.
If you opt for a lease transfer and carry on with the monthly installments or purchase the lease outright, you must of course do some calculations and try to get the best deal from either of the scenarios. You should try and deal with the lessee trying to eliminate the lease, after all, he is the one looking to get out and it is in his best interest to find a buyer.
You have to first find out how much it will cost you to buy out the existing lease. One can and should call the lessee of the vehicle and request that person to call the vehicle leasing company for the exact up to date cost for the buyout. Once you receive this information, you can start price discussions with the vehicle lessee.
There are however a few significant points to recall concerning lease transfers.
You will be buying the vehicle from the original vending dealership – and not the lessee or the leasing company. The lessee does not own the vehicle as it is leased from the manufacture.
The leasing transaction will be subject to all applicable sales taxes.
An administrative fee is always added by the original car dealership to the final selling price. This is what is known as a “transfer fee”. This can also be negotiated with the lessee.
If you work with the lessee directly, then it is significant and mandatory that the lessee coordinates with the original selling dealerships representatives for their support in closing the deal.
Try to negotiate the best price from the lessee (as he is planning to get out of the lease), the car dealership (they will lose money if they lessee cannot pay and they reclaim the vehicle), and the leasing company (you are a new customer and every company tries to entice a new customer).
There are literally thousands of lease transfers available online today, so your choice is wide. There are dedicated sites such as Lease Busters, Quebec Leasing and Swap A lease among others.
Be a savvy buyer and you will likely come out on top. Happy leasing.
