How to Transfer Your Leased Car

You can't sell a leased car, since you don't hold the title to it. If you need to end a lease, you can transfer it to another person and avoid paying the termination penalty or remaining payments.

Difficulty: Moderate

Instructions

Things You'll Need:

• Automobile
• Bank Account

1. Contact your lessor to make sure it allows lease transfers or lease assumptions. The lessor probably doesn't advertise the fact, but may allow it after a certain period of time.

2. Find someone willing to take on your lease. Ask acquaintances, friends and relatives. Advertise. There are Web sites that facilitate lease transfer for a fee, such as LeaseTrading.com, LeaseTrader.com and SwapALease.com.

3. Have the buyer complete a credit application. When the leasing company approves the application, it will issue transfer documents for you and the lessee-to-be to sign.

4. Hand over your former leased car to the new lessee, who begins making the remaining payments. At the end of the lease, the new lessee returns the vehicle to the leasing company (or might have the option to buy, depending on the company).

Tips & Warnings

• Make sure the person has permission for a lease transfer
• Find someone dependable to take on lease
• Lease transfer isn't the same as a sublease. Subleasing a car is not legal in some states.

[legalwannabe]

on 1/25/2009 Be careful of any payment guarantee companies that promise to find someone to assume your lease payments. They keep the vehicle in their possession only to drive it around while you're stuck making the payments. Never given anyone your vehicle with the expectation they'll make your payments. Unless you transfer it legally with your lender's approval, your stuck with the credit consequences and monthly payments. FYI: try takemypayments. They look pretty legit..

[Takeover]

on 8/4/2008 Takeovermyautolease.com is the premier online marketplace for auto lease transfers.

[enzley]

on 1/2/2007 In addition to the lease transfer companies named in this article, TakeMyPayments.com also provides the same service and has been doing so since March 2000. This company is also worthy of consideration when tranferring or assuming a vehicle lease.