Before you swap a car lease there are many details that you need to be aware of. You are not actually swapping a lease with another party. Instead, you are either offering your lease to another person or looking for one to takeover. Once you learn more about the process of swapping a lease you will have an easier time deciding if it is right for you.
Buyers and Sellers
The process of swapping a lease entails two parties: the buyer and the seller. The buyer is the person looking to take over a lease. The seller is the person who wants to get rid of their current lease.
Those who want to swap a car lease generally use an online marketplace that facilitates the deal. This helps to ensure a smooth process in which both the buyer and the seller get what they want.
Mileage Restrictions Apply
Just like any lease, you need to be well aware of any mileage restrictions if you are buying. For instance, you may take over a lease that offers 12,000 miles per year. That being said, make sure you know how many miles have already been driven. A three year lease at 12,000 miles per year equals a total allowance of 36, 000 miles. If the car has 30,000 miles with one year left on the lease, you are only able to drive 6,000 miles before over-mileage penalties kick in.
Buyer Can Get out Early
For the buyer, the main benefit of swapping a lease is that he can get out of the contract early, without having to pay an astronomical fee to the leasing company. The financial benefits of swapping a lease vs. turning it in early can be significant.
No Down Payment
If you lease a new vehicle from a dealership you are more than likely going to be required to put money down-this is known as capitalized cost reduction. When you buy a lease, however, this is not something that most sellers ask for. In turn, you are able to save yourself a lot of money upfront.
Lease Swapping Fees
Since the majority of people swap a car lease through an online marketplace, there are several fees that you need to be aware of. First, the seller will pay a listing fee with the marketplace they choose. Additionally, the seller often has to pay a fee at the completion of the deal.
On the other hand, the buyer is first responsible for a registration fee that allows them to use the marketplace to search for vehicles. Secondly, the buyer may have to pay the leasing company to transfer the lease and/or run a credit check.
Before you swap a car lease it is important to consider the five facts above, as well as any others that will affect the outcome.