A car lease transfer happens when a car that is subject to an auto lease is transferred to a different driver from its previous one. The running costs of the car are also transferred to the new driver, who will maintain the original terms of the lease.
The original lease price, duration of the lease, dates of payment and vehicle maintenance regulations are all maintained by the new driver. This process is known as a lease takeover.
Advantages of a Lease Takeover
One of the most common reasons for drivers engaging in a lease takeover is to enable them to own a specific car for a short period of time. Many drivers will use the period of the lease to experience the car type they have in order to make a decision about purchasing it in the future. Almost like a really long test drive.
Swap leases are also beneficial to drivers who are on assignment in the area for a stipulated period of time. It would not be advisable for them to purchase a new vehicle as they do not intend on relocating to the area of their assignment.
Lease payments are generally cheaper than purchase payments. This is however dependent on the duration of the lease. The longer the lease period, the lower the monthly payments. This option is particularly beneficial to expatriates.
Lease takeovers provide a wide variety of vehicles that are especially in very good condition. Most leases involve vehicles that are between 2 to 4 years old. Compared to leasing, purchasing a vehicle of this age group would be a costly affair.
Disadvantages of a Lease Takeover
The options that lease swapping comes with may be very tempting. It, however, has a few drawbacks.
In taking over the lease, the new driver assumes responsibility for the general condition of the vehicle including wear and tear. Some drivers will intentionally hide any mechanical issues that the vehicle may have developed during their time with it in order to pass the responsibility to the new driver.
A number of leases have a specific mileage limitation and a charge for every mile over the limit once the lease is expired. This might prove to be a tie down especially if you are one to enjoy road trips.
A few people have been victims of scams involving lease swaps in the recent past. While most dealers are genuine, there have been a number of fraudulent dealers. In the age of the internet, it is very easy to obtain vehicle information from websites such as CarFax.com. fraudsters sometimes use this information to con potential leases.
Some dealers have hidden charges and penalties which are not apparent at the beginning of the lease term. Some even go further to alter the maintenance history of the vehicle in order to have you pay for damaged parts.
Many of these pitfalls can, however, be eliminated by dealing with a credible dealer such as https://www.leasecosts.ca.
Choose a Credible Dealer for Your Lease Swap Arrangements.
To avoid many of the disadvantages that lease takeovers come with, pick a credible dealer who outlines everything they expect from you in a clear manner. For more information on vehicle leases and much more, be sure to check out our page.