When individuals think ‘leasing’ its well known the first thing that comes to mind is being locked into a commitment over 3 to 5 years. What is not well-known, and growing in vast popularity, is the opportunity consumers have with lease assumptions. An auto lease assumption makes it possible to terminate an auto lease early through the process of transferring the lease to someone else, known as a short-term lease.
Lease assumptions are done by the individual who needs to transfer their auto lease to someone else seeking to take over the lease payments – for a few months or for the duration of the lease agreement. When someone assumes a lease, they are taking over the lease rights and responsibilities under the current term of the lease agreement.
For example, if your leasing a car over a 3 year term and after 2 years you loose your job, or become strapped for cash, want to buy a home, or simply have other financial obligations you must meet, you may have the option within your lease agreement to end the lease early by having someone take over the remaining 1 year on the lease agreement. Once the lease is successfully transferred, you’re no longer obligated financially, or legally, for that lease.
There a a number of benefits for someone to take over a lease, or what is known as short term leasing. This may include less monthly payments due to a down payment made by the original leasee, a shorter commitment before the lease needs to be returned, the opportunity to get into a more luxury vehicle at a lesser cost per month.
Lease assumptions are also referred to as breaking an auto lease, swap a lease, bust a lease, break a lease, lease transfer, etc. When leasing a car is essentially purchasing a portion of the vehicle for a set period of time, the slightly higher cost to doing this can be shared by not fulfilling the complete lease agreement, and transfer or swap a lease to someone who understand the benefits of taking over a lease, or short term lease, and assumes the car lease for the remainder of your lease agreement.
People who assume a lease through a lease transfer process, can take over the lease with virtually no money down. In many cases, the original lessor may offer an incentive to assume the lease, such as one or two months of lease payments. A consumer can save literally thousands of dollars by assuming a lease through a lease transfer.
Why would you want to get out of a lease early and let someone assume your lease? Your financial and personal obligations change over the years. In a 3 to 5 your leasing commitment, your payment hundreds of dollars every month towards your vehicle lease. During this time you may end up needing to free up that cash for whatever personal or financial obligations you get strike you. Perhaps you decide to go back to university, having a new baby buying a new home, taking care of family, loss of job, or simply become more aware to your environment and decide to ‘go green’ instead of driving.
Whatever the reason, and everyone has their own personal reasons, a lease assumption can be a valuable opportunity for both people – those needing to terminate a lease early, and those who see the value in a lease take over. Numerous personal and financial situations occur that make a lease assumption through the lease transfer process the best option for a consumer.
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