How much is the lease transfer fee?

Almost all leases that are assumed or transferred to another person require to to pay a lease transfer fee. But more importantly, who pays the lease transfer fee, and how much really is this fee?

There are also lease transfer marketplaces who may charge this directly to the lease seller with a mark up. For these reasons, its important you see below how you can get the real cost of the lease transfer fee, and how you can reduce the lease transfer fee costs.  Continue reading “How much is the lease transfer fee?” »

Canadians deeper in debt in 2012 due to auto financing

auto financing debtPostmedia News reports Canadians are deeper in debt in 2012, with non-mortgage debt up 3.4%.  The large increase, a 9.7% rise in Canadian debt levels was due to auto financing.

Auto financing through banks or dealerships financial brands contributed to this spike where more Canadians are buying or leasing new vehicles. The lower interest rates in Canada may make it attractive for Canadians to get into a new car or new lease, but across the provinces the rising debt levels of Canada is suggested that it will catch up.

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Am I still held liable once the lease has been transferred?

Whether or not the original lessee is liable once the lease is transferred depends on the leasing company involved.

Some leasing companies completely remove the first individual from the account and some choose to leave the original lessee liable as a guarantor.

When the original leaseholder is removed, the lease transfer is typically referred to as a “lease assumption”. When liability remains with the original lessee, the process is known as a “transfer of equity”.

Within North America, its quite typical the lease agreement and conditions are fully transferred to the Lease Seller. In the view of the leasing company, if they’ve performed the credit check and find the Lease Buyer is credit worthy, they would have a better legal chance of getting the ongoing lease payments from them, versus chasing the previous Lease Seller who typically exited the lease due to financial difficulties. It can be in the best interest of the leasing company to allow a lease transfer if the other person is more credit worthy. However, due diligence should be done to confirm with your leasing company.

Tips on taking over a lease from another state or province

You’ve found a few perfect leases for take over but discovered their not local and even across the country. No problem. When taking over a car lease from another province or state, there are a few tips you should remember. First, lets assume you checked with the leasing company first to confirm you can perform a swap a lease from another state or province. While most leasing companies are national, its always safe to check first if the person who needs to get out of a car lease (lease seller) lease agreement allows for a lease transfer outside the state or province from which the lease was first purchased. Continue reading “Tips on taking over a lease from another state or province” »

In a swap a lease, who is responsible for the vehicle damage at the end of the lease?

Let’s say you took over a lease and either knew before, or discovered after the fact there is vehicle damage or excess wear and tear on the vehicle. Since vehicle damage and excess wear and tear is charged by the leasing company at the end of a car lease, then how can you protect yourself against damage you did not cause? There are basic tips you should know before taking over a car lease, buying out a car lease and even buying any vehicle from an individual or dealership. Continue reading “In a swap a lease, who is responsible for the vehicle damage at the end of the lease?” »