sparrow

Has anyone had experience in taking over a lease? Any general pitfalls to look out for that aren't immediately apparent? Also has anyone used swapalease.com to find a lease? I have no interest in owning certain vehicles but would like to drive them for a period of time. I am specifically looking for leases that have a year or less remainig depending on the vehicle.

BobbyC

i had no idea such things existed..
interesting.

why dont these people just trade the cars in if they dont want it anymore?

ive leased plenty of vehicles that ive sold before the lease end..
never had a problem cept my 95 maxima that i went upside down on due to an accident.

dombey

same reason they sell a house and don't buy another one....lost a job, got divorced, etc.

BobbyC

true but you could trade in even steven in most cases imo or sell it private and possibly make some money.

cool concept but most of the deals seem like stealerships.

dombey

I think there are some general pitfalls:

1. did the original lessee actually negotiate a good lease deal? I think you'll find that 90% of lessee's did a poor job of negotiating due to the relatively difficult structure of a lease. If you're willing to pay a premium just to have an ultra-short term, then you might not mind.

2. Fees. Not only is the deal itself a concern (per the above), but you have to find someone willing to cover the fees that swapalease/leasetrader charge. And the lease has to be held by a finance company that allows lease transfers. Some finance companies have oddball rules around lease transfers even if they do allow them...although I think the risks are generally higher for the seller than the buyer.

3. liability. who knows if anything has been done to that car that isn't visually obvious (ie not changing the oil for 30,000 miles). While the cars will usually be under warranty, all bets are off if you claim is denied due to abuse by the previous owner. Is there any unusual wear/tear that you could be charged for at lease end?

4. disposition fees. Make sure you check the lease contract to see if you're gonna owe money at trade-in.

5. car is unlikely to arrive in pristine/recently detailed condition with a full tank of gas and fresh tires. In fact, it will likely be due some maintenance when you get it...I would ensure this if I was the seller.

Just make sure you read and understand all of the paperwork, if you have an attorney in the family let them look at it...

sparrow

Thank you... I have been doing a lot of reading on the matter and I am aware of certain transfer fees depending on the lender. I don't mind paying a slight premium just to have a 911/gtr etc for 6-9 months. In some cases even though the lease has been transferred the liability is still on the original lessee. In my own interest I would setup a PPI, or in this case a PLI, to mitigate as much mechanical risk as possible. I have no interest in driving these cars for 24 months which is the typical minimum lease period.

SoCalAp2

I thought it is required to have gap insurance in a lease, because you will be upside down on a lease unless you put a huge chunk of drive-off (which nobody does)

DFWs2k

Gap insurance is relatively new.

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closetgeek

Watched an segment of this on news last night. I read about months prior though over on a Porsche forum. I didn't think it was legit though. I guess I'm wrong.

Ben22

Thought about doing it myself...getting what I really want but only for a year or so, without the initial down payment.

http://www.leasetrader.com/

http://www.swapalease.com/lease-trade.aspx

I'd love to hear about someone who did it