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| Lease Trade | |||
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The
term, Lease Trade, as it applies to car leasing, generally
refers to the concept of third-party lease assumption (sometimes known
as a "lease takeover"), made popular by companies such as Swapalease.com An auto lease can often be transferred, or "traded", from the original lessee to another party, thereby avoiding the typical high cost of ending a lease before its normal termination date. This is a process that must be handled by the lease company and cannot be done between individuals without violating the "seller's" lease contract. In effect, by conducting an unauthorized trade, the deal would be made void. The other party assumes responsibility for continuing to make monthly payments, although many auto lease companies still hold the original lessee responsible if the new lessee fails to make payments - not a good situation if it can be avoided. Since the new lessee assumes the old lease terms, he should make sure there are no problems or excessive wear and tear on the vehicle before he takes it over. Otherwise, he may have to pay when the vehicle is returned to the lease company or bank at lease-end. Some auto lease companies do not allow lease trades, or lease assumptions, at all. If you are interested in such a transaction, contact your lease company to find out their policy before you spend any time going forward with it. If you are a prospective "buyer", have the "seller" contact the lease company.
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