The short answer is yes.
When someone wants to learn how you can get out of a car lease, one of the top questions they should check with their leasing company is if they’re lease agreement allows to swap a lease, and if yes (most do), then can a person who’s interested to take over a lease, buy the vehicle versus assuming the lease.
When an individual assumes a lease, their essentially going to take over a car lease for the remainder of the lease term on the lease agreement. This is better well known as a short term lease through a swap a lease process. Basically the original person who leased the car is going to transfer the vehicle and its lease to another individual. There are benefits on both sides.In the case an individual doesn’t want to join other lease busters and assume the lease, they do have the option to buy the the vehicle from the lease swap process.
Almost all vehicle leases agreements allow to buyout the lease prior to the expiry of the lease term. The cost to buy out a lease from a lease transfer, your best option it to contact the leasing company for the before tax value of the lease buy out.
So how can you get out of a car lease? Two options….transfer the lease via a lease swap to another person, or see if another individual is open to pay the buy out value of the lease to purchase the vehicle outright.
If you’re seeking to join other people to bust out of a lease, or on the other side to take over a lease, either way you go with assuming the lease from a transfer or decide to buy out the vehicle, you can begin the negotiating process anytime with the original lessee.
Tips to buying a car lease:
- In most cases, if you buy out the lease you’ll actually be purchasing the car from the original dealership in which the vehicle was leased from, and not the leasing company or the person who is leasing the car and originally posted the lease for a lease take over.
- Additional fees. Yes, the dealership will get you wherever they can. If you buy out a lease from someone seeking to swap a lease, then the original dealership who sold the leased car will almost always apply administrative fees to the sale. Since they’ll be performing the service of facilitating the transaction, the administrative fee is their cut for the time well spent.
- The lease seller is not always off the hook. If the dollar amount of the lease buy out is greater than the selling price of the car that you negotiated, then the person who originally leased the car and who is pursuing to get out of a car lease, must agree to subsidize the difference between the lease buy out amount and negotiated seeling price. Lets walk through a simple example. If car lease buy out is $25,000 and the selling price of the vehicle negotiated is $20,000 – then the person who originally leased the car and pursing how I can get out of a car lease, must pay the difference. This is called a buy out subsidy, plus any additional taxes, etc. While this is not always great news for the original lessee, the difference paid may be considered a blessing depending on how bad he or she needs to get out of a car lease. Just think, if he or she decides to not pay the difference, and loses the potential lease buyer, then he or she may be stuck with the lease for another few months or to the end of the lease term….which can add up to thousands in monthly lease payments.
- Trying to get out of your car lease, then it’s your responsibility to connect the dealership who originally sold the lease with the potential lease buyer to help facilitate and close the deal.
So if someone wants to bust out of a car lease, and perform a swap a lease, then as someone who is considering to take over the lease, remember you have two options. You can assume or take over the lease for the remainder of the lease term. This option can be great as you’re getting into a lease for less cost, less time commitment and ultimately can get into a more luxury car for less cost.
The second option is instead of taking over the lease for the remainder of the lease agreement term, simply buy out the lease so you own the vehicle. There may be advantages to this when you consider if the person seeking to swap their lease may have originally dropped a solid down payment at the beginning of the lease contract to being down their monthly lease payments. As someone considering to take over a car lease for a lease buy out, you may benefit from this down payment and get into the car for much less.
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