If you are considering an auto lease, you may be able to get a better deal and more benefits if you take over a prior lease from an individual, instead of leasing a vehicle directly through a dealer. Because auto leases are for a relatively short period of time, it can be difficult to exit a lease early and return the vehicle. Many dealers will apply early termination fees, or insist on all of the remaining lease payments. Auto lease assumptions allow you to take over the rest of the lease term from the individual, including the monthly payments, so the lease contract is fulfilled and the person is not hit with additional fees.
Why would you consider an auto lease assumption? This approach has several advantages over traditional leasing. First of all, you will not have to come up with a down payment in order to start driving the vehicle. All you have to do is take over, or assume, the monthly lease payments. If a person paid 00 down and has a 9 monthly payment, you just have to take over the monthly payment portion, which creates a big savings.
Another distinct advantage is the ability to have a shorter and more flexible lease term. A traditional lease is usually four-five years. However, with auto lease assumptions, the lease term is normally just two years, and in some cases you can get an assumption with just one year left on the lease. That way,you won't be stuck with a vehicle you might be tired of, and will be ready to trade in for a new one.
Auto lease assumptions are relatively easy to initiate and complete. There are several popular sites that allow the holders of a lease to advertise a vehicle, and the sites will help guide you through the transfer process. The online sites are usually the best place to start.
The first thing to do is to get pre-approved for a lease assumption. Like getting a new lease, taking over an existing one does require relatively good credit. If you are shopping through a website, you will normally be able to fill out an application online. Like getting pre-approved for a home loan before you start house shopping, get pre-approved for auto lease assumptions first will give you the most choice and flexibility.
The next thing is to chose the vehicle. You will normally get to see photos first, which will help you make your initial decision. If you are live long-distance from the seller, you can usually make arrangements to get the vehicle inspected for you, the third party companies who help facilitate the assumption will often offer an inspection service. You certainly want to get the vehicle properly inspected before you take over the lease.
Once you and the seller agree on the vehicle, the seller will initiate the transfer. Your credit application is sent to the original leasing company,and when approved, they will create the new leasing documents that both you and the seller need to sign. Once the leasing company has verified everything and the new paperwork is issued, the seller is notified, and you will make arrangements to receive the vehicle.
Auto lease assumptions have many benefits. They allow you to lease a vehicle of your choice for a shorter period with out a down payment. If you are willing to do some research and to work with a seller, you can often get a great deal.