What Is a Lease Takeover?
Now that you’ve discovered the Canvas all-inclusive monthly car subscription, you can’t wait to get the car you’ve always wanted.
There’s only one problem: you’re tied down to a lease.
However, there is a solution: a lease takeover.
What is a lease takeover? It’s simple. You transfer your lease to someone who is looking for a short-term lease or wants to take advantage of the low payments that come with a flexible lease. And, best of all, a lease transfer is easy and inexpensive.
What Are the Benefits of a Lease Transfer?
How does a lease takeover create a win-win for everyone involved?
As the seller, you can get out of your lease without incurring any penalties or fees. You are no longer tied to a long-term car commitment with a leasing company. You are also now free to start your car subscription with Canvas.
There are several advantages for the buyer. First, if you made a sizeable down payment to enter into the lease, the buyer can benefit from lower monthly payments. You may even be willing to offer a cash incentive to entice the buyer to take over the lease program.
Another advantage for the buyer is that they can test-drive the car. It’s better than renting a car for a year. If they like the car, they can then purchase it at a much lower price once the lease ends. Or, they can trade the vehicle in for another vehicle. Either way, they benefit from getting a great deal on the car they’ve always wanted.
How Does a Lease Takeover Work?
Getting out of a lease is easier than you might think. You simply enter into an agreement through a process called a lease assumption or a lease swap. Two of the most popular lease swap websites are Swapalease and LeaseTrader.com. Both sites are reputable and highly rated by auto experts such as Car and Driver, Edmunds, Bankrate, and NerdWallet.
There are some things that you should consider if you want to pursue a lease assumption:
The leasing company that owns the vehicle must approve and arrange the lease takeover. Therefore, if you attempt a lease takeover without the company’s consent, you will violate your contract.
Some companies do not allow lease takeovers or impose certain restrictions on the takeover. Contact your lease company to find out about their guidelines.
The leasing company will hold you liable if the new lessee defaults on the car.
Last, be aware of the fees, terms, and conditions of any lease swap company before you enter into any swap agreement. Make sure you understand what you are responsible for in the transaction.
How to Swap a Car Lease
Here is a breakdown what you can expect during a lease takeover:
Get a Confirmation From the Lease Company
First things first, you’ll need to make sure that the lease company will allow you to swap the lease. Some companies may help you find someone to take over the lease. Others will allow you to use a third party like the companies we mentioned above.
Still, other companies will only agree under strict conditions, or they will deny your request. Before you commit to a lease takeover, make sure you understand the company’s guidelines first. This includes finding out how much the company may charge you for transferring the lease.
Find a New Owner
Again, if the lease company allows you to use a third party, then you will be responsible for finding a new owner. The best way to find a new owner is through your friends, family, or coworkers. Someone you know may be looking for a car to lease. You can also advertise on social media, car swap sites, and lease swap sites. The advantage of using a swap site is that you already have a built-in platform for swapping the car with tools that you can use to promote the lease takeover.
Buyer Credit Check
Now that you have found a buyer, the company will run a credit check to confirm that they can afford the payments and that they will be dependable. You will also want to be proactive and vet your potential buyers. Remember, if the buyer flakes out on the lease company, you could get stuck with the car again.
Complete the Transaction
If you, the buyer, and the lease company are 100 percent satisfied with the transaction, then it is time to fill out the paperwork and complete the lease takeover. Part of the transaction includes the transfer of the vehicle registration. Make sure that you follow up with the new buyer and make sure that they’ve completed the registration and tag transfer. Otherwise, the car is still officially in your name.
Take Care of Your Car
The only successful lease swap is one in which the new buyer actually agrees to take over the lease. For that to happen, they must really love your car. Why? Because you are not the only person interested in getting out of your lease. Therefore, you are competing with the myriad of other car lessees who are also posting their cars online.
The best way to get an edge over the competition is to keep your car in excellent condition. Potential buyers will perform the same checks on a lease as they will an auto purchase. They will test drive the vehicle, look it up on Carfax.com, take it to a mechanic for an inspection, and ask you questions. The leasing company is also likely to perform their own inspection. Therefore, it is imperative that you maintain the car, change the tires, get the oil changed, keep it clean, and address any mechanical issues immediately. It is the best way to ensure that you can get out of your lease.