How does taking over a lease work?

[LUDELVR]

Well, my bro is looking to get rid of his 2003 civic coupe (non si) and just wondering how this would work. How much should one charge etc etc.

[buh_buh]

usually people just get someone to take over the payments and charge nothing

[gpomp]

http://www.leasebusters.com

[Weapon_R]

What do you mean when you say:


How much should one charge etc etc.?

If you mean that you want to charge a person for taking over your lease, good luck lol. Usually, you have to PAY someone to take over your lease, and consider yourself lucky if someone takes it over for free. Chances are that the amount you've paid into the car is very close or not as much as the depreciation that the car has experienced to date.

[legendboy]

You have to go to the dealership and apply for the lease. If you get approved then you qualify to take over the lease. Same as leasing a new vehicle. The business office at the dealership might charge you a $90 or so dollar finance charge.

[2000impreza]

also note that after having someone take over the lease the original person that the lease was signed to is still responsible for the payments being made. so make sure you trust the person the lease is being signed over to. lol.

[max_boost]

Originally posted by Weapon_R
If you mean that you want to charge a person for taking over your lease, good luck lol. Usually, you have to PAY someone to take over your lease, and consider yourself lucky if someone takes it over for free. Chances are that the amount you've paid into the car is very close or not as much as the depreciation that the car has experienced to date.
Well there are circumstances where one has made a significant downpayment on the vehicle, which is unlikely in this case because it is just a Civic and the owner may want a portion of their original money back or if there is a security deposit etc.


Originally posted by 2000impreza
also note that after having someone take over the lease the original person that the lease was signed to is still responsible for the payments being made. so make sure you trust the person the lease is being signed over to. lol.

Exactly, so if buddy who bought your car goes bankrupt or leaves the country, you are still held liable!
:eek:

I know Acura charges a $300 administration fee to transfer leases, I presume Honda should be around the same.

[legendboy]

Originally posted by 2000impreza
also note that after having someone take over the lease the original person that the lease was signed to is still responsible for the payments being made. so make sure you trust the person the lease is being signed over to. lol.


hmmm i didn't know that. I think if the lease gets transfered over to someone else thru the finance company your off the hook :dunno:

[max_boost]

Originally posted by legendboy



hmmm i didn't know that. I think if the lease gets transfered over to someone else thru the finance company your off the hook :dunno: I thought so too!!! I actually called Honda Canada Finance to verify and I know it works the same with BMW, Ford and probably other manufacturers as well.

[sxtasy]

In most cases there are 3 options when getting out of your lease early
1. have someone assume the lease, this can be tough to do sometimes
2. pay off the remaining payments on the lease. Obviously this isnt very logical in this case, because i am assuming there are still a couple of years left on the lease and who wants to waste that money
3. add up all the remaining payments left on the lease, add that on to the residual (buyout), and try to sell the vehicle for as close to that amount as you can.
option 3 would probably be the best and easiest option out of the 3.
Is he planning on purchasing another new car? Sometimes what you can do is sell the vehicle to the dealership (as a trade in on a new one) and bury the difference between amount owing and vehicle worth into your next car.

[Weapon_R]

Originally posted by max_boost

Well there are circumstances where one has made a significant downpayment on the vehicle, which is unlikely in this case because it is just a Civic and the owner may want a portion of their original money back or if there is a security deposit etc.



Of course, there are always instances such as these. I would assume, however, that one who is able to make a "substantial" down payment would probably not look to buy a $17,000 car.


Originally posted by max_boost
[B]
Exactly, so if buddy who bought your car goes bankrupt or leaves the country, you are still held liable!
:eek:

I know Acura charges a $300 administration fee to transfer leases, I presume Honda should be around the same.

What if the entire leasing agreement was transferred to the new buyer? I've seen countless times where a seller will advertise in the paper for someone to assume the lease payments. It wouldn't make sense for anyone to do that and still hold any burden at all.

[max_boost]

Originally posted by Weapon_R


Of course, there are always instances such as these. I would assume, however, that one who is able to make a "substantial" down payment would probably not look to buy a $17,000 car.



What if the entire leasing agreement was transferred to the new buyer? I've seen countless times where a seller will advertise in the paper for someone to assume the lease payments. It wouldn't make sense for anyone to do that and still hold any burden at all. The only way you can opt out of the lease agreement is by purchasing the vehicle outright. Remaining lease payments + residual. It's ok if you don't believe me, because I thought it was BS as well.... LOL:rofl:

[jblitz101]

Hey Guys,

I've been a Business Manager for 7 years now and I know a little about this subject.

1) People that want to get out of their lease usually put 0 to very little down payment on their vehicle when new. If that is the case, in most instances they have no "equity" in the car. Therefore, a lease assumption is the one way for someone to get a new car without some money down. Sometimes if the person that wants to get out of the lease will at times even pay that person to take over the payments. It happens! I once spoke with a guy that would give me $5,000 to take over payments on his Boxster!! I said No.

2) Primary Responsiblity - is dependant on the lease company. Honda Canada Finance for example leaves the original Lessee responsible for one more year. Unless they have changed their policies as of late. Toyota Credit Canada removes the original lessee from responsiblity (which is ideal). Also, HCFI when I left T & T Honda in May 2003, could not charge a administration fee for the transfer. So that $300.00 charge maybe not be correct. If it is a dealership lease (non manufacturer) a charge may be applicable.

I for one, have assumed a lease before. I told the person I was buying the car from, what the risks were on his end. I told him he had nothing to worry about as I would not risk my credit rating. Also, the bank would not approve the new person unless their credit was acceptable. Right? Needless to say, everything went great.

I also got someone to take over my lease on my 2001 BMW 325ci.
I had originally leased it with Stampede Leasing. The person that wanted to buy it said she was OK with taking over my lease. I told her I wanted 2000 plus my security deposit and she can just take it over. She also paid 300 in a transfer charge at Stampede Leasing. It also went smoothly.

I hope this helps. Lease assumptions can be a good way to unload your car, as long as everyone knows everything up front.

John Espanol