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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 decisions by offering you interactive tools and financial calculators that provide objective and unique content. This allows you to conduct your own research and compare information for free and help you make sound financial decisions. Bankrate has partnerships with issuers, including but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The products that appear on this site are from companies who pay us. This compensation can affect the way and when products are featured on this site, including such things as the order in which they be listed within the categories of listing, except where prohibited by law for our mortgage and home equity products, as well as other home lending products. This compensation, however, does affect the content we publish or the reviews appear on this website. We do not cover the vast array of companies or financial deals that could be open 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 specializes in assisting readers in navigating the ins and outs of securely taking out loans to purchase a car.







Edited by 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 to take control of their finances through providing clear, well-researched information that breaks down complex subjects into digestible pieces.









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The car market is struggling to catch up with the shortage of inventory and a lack of cash, taking over lease payments can be a good option to get behind the car. Third-party websites can help you connect with someone looking to terminate their lease earlier. But since lease contracts typically last for up to three years, you may need to purchase the vehicle or give it back to the dealer -- before you're prepared. Do you think a lease takeover is an ideal idea?
If your circumstances permit depending on your circumstances, borrowing someone else's lease can be a smart option as it could have lower monthly expenses and a wider range of vehicle options to purchasing.


Advantages of a lease takeover A car lease is a good option for those who want to purchase a more modern car for a short period. The availability of vehicles With car owners staying with their brand new cars for the amount of 6.5 years, as per the most recent figures from and leases generally last for two or for three years. It can be challenging to find the best price for a newer car that isn't the model year currently in use. It is possible that you'll be able to get a relatively new vehicle through an assumption of lease. Short-term lease While the average lease lasts between two and three years the lease assumption expires sooner. It allows you to try out a car without having to sign an extended-term contract. It's not often you can find that timing available through traditional leasing outlets. Cash incentives A lot of drivers want to take their car off their hands in a lease assumption scenario. It is not unusual for the original leaseholder to offer cash incentives. They might also offer the possibility of covering any transfer fee that a leasing company may charge that could help you save thousands of dollars. Negotiate with the lessee to get the most favorable deal. Reduced monthly payments If the lessee in question has great credit and made a large down payment, it's probable that the monthly payment is low. Because you'll be taking on the monthly payment in the same way it is possible to take advantage of the conditions. Advantages 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 the lease, be aware of potential pitfalls. No renegotiation The lease you take over becomes the contract you get. It is not possible to negotiate the lease conditions that the initial lessee agreed to. If your credit score was poor and you were unable to negotiate, you could be in a position to be paying a greater monthly installment than you would have received when you signed the lease yourself. There is also the possibility of an increased lease-end price than you could otherwise receive. A limited mileage lease means that you will need to stick to the original mileage limits on the car lease agreement. Overstepping this limit can cost you -Overages can are between 10 and 25 cents per miles. Try and estimate how many miles you will drive prior to the lease expiring to make sure you won't have to pay a penalty. Also, be sure to make sure the original lessee hasn't already incurred costs for mileage overage. Costs for wear and tear that could be high if the previous owner did not maintain the vehicle, you will be responsible for the wear-and-tear costs. Like any used vehicle take the vehicle to inspect it in person and have it examined prior to signing over the lease. If there is an excessive amount of wear, check whether the original leaseholder will be able to cover the cost as part of your transfer. Additional charges There are three major charges that are associated with a lease takeover: leasing transfer, credit application and . According to Swapalease, you can expect these charges to cost anything from $395-$895. Make sure you are aware of the exact details of these charges prior to signing the lease assumption. How do you assume a car lease If you've made the decision to assume the lease, you have many options available. Lessees who wish to hand their leases to others can go to websites like Swapalease, LeaseTrader and QuitALease to find someone to assume that role. You can also reach out to the company that leases. They could be able offer suggestions or in establishing a relationship with a potential lessee. Although the terms of the lease will be determined by the initial lessee's credit however, your credit will be assessed. Be prepared to bargain with the lessee about any potential cash rewards as well. The final word: If you choose to accept a lease, bear your mind in the forefront that the responsibility you are taking over is greater than a typical auto lease because of the background of the initial driver. The lease will be liable for the rest of the charges on the car and any damage or fees due to the original leasee. Compare and shop around for options before signing any agreements. Find out more


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Authored 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 borrowing money to purchase the car they want.



The edit was done 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-studied data that breaks complicated topics into bite-sized pieces.






Auto loans editor




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