It is costly to lease a car and can also be costly to terminate a lease. LeaseTrader will connect individuals looking to sell their lease to someone who is interested in taking it over. This service benefits both parties of the transaction. The lease seller is simply transferring the lease to someone who will continue to make the monthly payments on their behalf.
Prior to posting your leased car on LeaseTrader.com, find out the dealership’s policies regarding lease transfers, they may not even allow such transactions. With a lease transfer, you will avoid the cost of terminating a least and the negative credit hit that goes along with it.
Lease sellers post information on the LeaseTrader site including the vehicle’s make, model, features, current and allowed mileage, leasing company’s information and optional lease buyout information.
Taking over a lease is a great way to skip the hassles of negotiating with a car salesperson. The leasing company will require a credit application from the interested lease buyer and will decide if they will be able to afford the payments. Once approved, transfer documents are prepared for both the original lessor and the assuming lessee.
Once the car is transferred, the responsibilities for the car are also transferred. Monthly payments, license registration, car service and maintenance, and repair work will be assumed by the new leasing party. At the end of the lease, additional fees will be collected when returning the vehicle; these include disposing fees, excess mileage fees, and other typical wear and tear fees.
The benefits to buying a lease are the opportunities to try out different cars for a smaller increment of time than a typical lease and avoiding the upfront costs associated with leasing a vehicle. There may even be an opportunity to extend the lease and even buyout the lease when the term ends.
LeaseTrader charges fees to both buyers and sellers using their services. Seller’s fees include an upfront cost of $89.95 and $ 249.95 once the transfer is complete. The bank and dealership may have their own fees including transfer fees and transportation of the vehicle should it be assumed from someone out of state.
Buyers pay LeaseTrader a membership fee of $39.95 and a $149.95 transfer fee after the transaction is complete. Other costs may include a bank transfer fee ranging from $0-$600, registration fees ranging from $50-$200, local sales tax, vehicle inspection costs and any applicable car transportation costs. The lease seller and the lease buyer may work together on splitting the additional costs, prior to the final agreement, so they are fairly distributed.
As good as this program sounds; there have been complaints about the company as well as negative outcomes after the transfer. Some members subscribed to their service because of a lease they were interested in assuming. Once they paid the membership fees they discovered that lease was not available which signals the services they claim to provide may not be legit. Some members were charged for transfers that ending up not working out and were denied a credit for the charge.