How to Takeover a Car Lease

Assuming a car lease is a great way to save money on a new car. While lease options offer lower payments and other benefits, this option doesn’t benefit every car buyer. Before making the decision to takeover a car lease, consider whether it’s financially beneficial.

Things You'll Need

• Assumable car lease agreement
• Good credit

Instructions

1. Educate yourself on the leasing process. Car leases are different from car loans. It’s like renting a car for a specific time frame, and then returning the vehicle to the dealership. You do not own the leased vehicle. What’s more, you have to return the vehicle in good condition.

2. Determine whether a lease is right for you. There are benefits to leasing a car. Still, it’s not for everyone. Dealerships impose mileage restrictions, and going over the allotted miles results in additional fees. Plus, it isn’t easy to cancel a lease agreement, and dealerships usually charge a termination fee.

3. Make sure the lease agreement permits transfers. Some leasing company don't allow takeovers. What's more, a few only allow one transfer during the lease period. Good credit is necessary to takeover a car lease.

4. Apply for short-term credit with the leasing company. If the leasing company doesn't allow lease takeovers, apply for a short-term lease with the finance company. This method requires acceptable credit. However, you don't need a down payment and you avoid up-front fees.

5. Take care of the vehicle during the lease period. Since you have to return the vehicle in good condition, it’s important to keep up with the scheduled maintenance. Get regular oil changes, and repair scratches and dents before returning the car.

Tips & Warnings

• If you need to terminate a lease agreement, pay off the lease balance early or transfer the lease to someone else.

• Car leases are contractual agreements that cannot be broken.

• Some car lease agreements involve balloon payments.