Am I responsible for a car lease after a lease transfer?

Sep11
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This is an excellent question we get from consumers who are learning the process of how to get out of your car lease, and an important point anyone who leases a car should ask before leasing.

Some leasing companies (the lessor) have this clause removed or relaxed from their policies. It’s an old-age policy that many leasing companies previously had, but have since most major leasing companies have changed. American and Canadian leasing companies as GMAC and other major leasing companies have removed and rid themselves of this old-age policy, however there are still some leasing companies who may still have this policy and due diligence should be asked with the leasing company and lease agreement. However, as the popularity of lease transfers and swap leases is exploding, more and more consumers who become lease busters will find that leasing companies will relinquish this as its in their best interest and customer service. 

In cases where this policy is in place or potential to be relaxed by the leasing company, can be found after the leasing company has a review of the individual assuming the lease. If their credit is in good standing, or in cases better than your credit, the leasing company may release the lease seller from the lease obligation. Again, its important this question is asked to the lease sellers leasing company to confirm.

Remember too, one of the big reasons leasing companies of relaxed this policy is that in the view of the leasing company (the lessor), they may view the swap a lease transaction for its future merits.

For example,  if the leasing company approves the lease transfer, they know they would have a difficult time getting any money from you (the original lessee) in the legal system, since the leasing company already approved the credit of the new individual who took over the lease.

Secondly, if the leasing company could qualify the new individual who is taking over the lease swap for a new lease with them, then why would the leasing company restrict your commitment and obligation to the remainder of the lease, especially if your having financial challenges to pay the lease in the first place.

For these two reasons, and others, most major leasing companies have relaxed the responsibility of the original lessor on the lease after someone else takes over the lease. However, its always recommended to perform due diligence and ask the leasing company and review the lease agreement for these details.

Questions or got an lease transfer experience to share? Comment below to share with others. And if you found this helpful, we humbly as you acknowledge it by simply clicking the Google +1 button or Facebook ‘Like’.

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