Going Out of the Lease with Less Cost

A lease is a binding contract that won't be that easy to get out of, like marriage; and it would cost as much as divorce too.

When a car lessee returns a car before the contract ends, high fees pile up. These fees include the early termination fee and other penalties. An alternative path to take to do away with these stifling fees is to transfer the lease to a new lessee.

Of course, there are still fees that you need to pay for this transaction, but you can rest assured that it’s chicken feed compared to the surging ETFs and other penalties.

What You Can Build On

How can a prospective lessee be convinced that the transfer of lease is desirable and more convenient than a new one? Here are some basic points you can focus on to negotiate the matter:

• This lease allows the new prospect to get a late-model car without the large amount to pay for down payment.
• He/she doesn’t have to stay long on the lease; this arrangement is perfect for executives and graduating students.
• Try to bank on the idea of lifestyle change. From having regular passengers to driving alone long range; it might also be from having heavy cargo to just light travel.
• With a lease, he/she can drive a car that suits his taste every year or two.
• The lessee can buy the car at the end of the contract.Another point to remember is that even if you have a slightly higher fee to pay for every month, the car can be an enticing offer with less mileage or a hefty cash incentive.

Any Downsides?

There’s nothing much to worry on this aspect though most of the dealerships or financial institutions set a certain fee for each lease transfer; this fee is not that high.

What to Consider

A lot of questions to ponder on before the ink dries in the contract:

For the exiting lessee:

• Does this prospective lessee has good credit background?
• Does your lease company allow lease transfers?
• Are you responsible for anything after the lease transfer?

For the new lessee:

• Have you read and understood the lease, both the old and new?
• Is the warranty period of the vehicle longer than the lease period?
• Have you inspected the car you are about to lease? Remember that if not, you might be found liable for any damage done before the transfer.
• Do you know the previous lessee of the car?
• Are you sure you can’t find a newer car with the same price you are to pay for the lease?
• Is there any lease-end charge you need to pay?
• Have you read the history of the car you are about to lease? You might find a lovely made-up car from a horrendous car accident.

Source: https://www.edmunds.com