Car lease assumption is a good way for someone who has leased a car but can no longer afford to finance then lease to get out of the agreement without resorting to a buyout. If you lease a used or a new car and find the payments on the lease are too high, you can have someone else assume the responsibility of your lease and take ownership of the car for you. This absolves you of any obligations to the leasing company and effectively ends your portion of the leasing agreement, getting rid of the car in the process. This is an excellent way to avoid hefty buyout fees and cancellation fines that many car leasing companies have set up automatically into leasing contracts.
Car lease assumption literally refers to the process of someone else assuming the responsibility for the lease you have on a used or new car. The paperwork for the vehicle and all other lease agreement details will go over to the other party, and you will be completely removed from the lease agreement.
The process of having someone else assume your lease is relatively straightforward. All you’ll have to do is communicate with your leasing company to find out their policies and instructions, then follow those guidelines. Most companies require you begin by having your car valued and assessed for net worth. You’ll then have to find someone else to assume your lease. This is typically the hardest part of the process, unless you already have a friend or family member available who is willing to take over the lease for you. If you don’t, consider putting out an advertisement online or in a local paper, or look around through car enthusiast organizations in your area for potential contacts. Finally, you and the other party will have to complete a series of applications and checks, including a credit report check for the new leaser and a transferal process to make the assumption official.
Other Benefits of Car Lease Assumption
In addition to being a good way for someone who is in over their head to get out of a lease agreement, car lease assumption can also be beneficial for the person who takes over the lease as well. Many leasing companies charge a hefty down payment and other up front fees to begin a leasing contract. These fees are often relatively substantial in comparison with the monthly lease payments that the individual who is leasing the car will have to pay. By taking over someone else’s lease in the middle of their lease agreement, you can effectively avoid having to pay any of these up front fees. This makes the lease itself potentially a very good bargain.
For more information on car lease assumption, consult with a representative at the leasing company that you work with.