What is a cash incentive in a lease swap?

You’ve lost your job, run into financial difficulties or simply need the cash, so you’ve decided to get out of your car lease early. But, if you return your lease to the dealer or lease company you’ll get dinged a large fee. So you did a bit of research on how to get out of  your car lease and discovered there are lease transfer marketplaces as AutoLeaseBreakers.com to list your lease for others to find and take over your car lease via a lease swap. As you begin this process to get out of your car lease, you discover something called a ‘cash incentive’ or ‘cash bonus’ offered by others who are seeking to get out of their car lease. What is a swap lease cash bonus or cash incentive?

A cash incentive or cash bonus in a lease swap is quite simple. As someone wanting to get out of your car lease (lease seller), you may offer a cash incentive to a lease buyer to take over your lease.

The cash incentive isn’t simply a finders fee to lure in prospective lease buyers. The cash incentive is attractive to a lease buyer as it will help bring down the monthly lease payments owed on the lease, also known as the effective payment on a lease.

The cash bonus or incentive offered by the lease seller (you – the person who wants out of a car lease), is just what its called….an ‘incentive’. The cash incentive value will vary from lease to lease as the desirability of the lease in the eyes of the lease buyer will vary. For example, a lease buyer has the advantage to get into a more luxury lease such as a BMW for less cost and time committment. For luxury leases, if the monthly payment is right then little or no cash incentive would be needed to incentivize the lease buyer.

However, there are many leases where the lease make and model is simply not enough. Perhaps the lease buyer got into the lease with no down payment and cannot afford the higher than average lease payments. It’s simply to expensive for them so they need out of their lease. As a lease buyer, this wouldn’t be as attractive to take over the lease, even if its a luxury lease as a Mercedes or BMW. So in cases as this where the lease payments are higher, or longer lease terms or high mileage, the individual seeking to transfer a lease would be more inclined to offer a cash incentive to a lease buyer to take over the lease.

When you ask how can I get out of a car lease early, you should also consider the benefit of offering a cash incentive. Yes, it may seem more costly to you to pay an incentive to someone to take over your lease, after all you’re likely trying to swap your lease to save more cash in the first place. But, when you calculate the cost of time to swap a lease, where every month goes by and you’re paying another lease payment, and another, and another, then offering a cash incentive may be considered a cost or investment to save money from future car lease payments.

How much cash incentive should I offer a lease buyer? Good question ;-). This will vary across the board, and obviously the higher the cash incentive, the more attractive and in theory, the quicker you should attract a lease buyer to take over the lease. A general rule of thumb often used by lease sellers is start with one or two months of lease payments. The  lease buyer will quickly see this and might be the incentive they’re seeking to assume your lease.

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