Saturday, April 21, 2012
How to Assume an Auto Lease
When you purchase a car, your lender calculates your monthly payments based on the total vehicle price, plus interest. Auto leasing benefits individuals who need a car but are strapped for cash by offering low monthly payments and little to no down payment. At the end of the lease, however, you must return the vehicle. Leases are binding agreements that sometimes prove problematic for those facing financial trouble or an unforeseen move. If you don't want a long-term lease, consider assuming the lease of someone who needs to escape his lease contract.
Locate an individual who wants out of her automobile lease. Look in your newspaper's classified section, ask friends and family members if they know of anyone who needs to terminate a car lease or sign up for a free lease-matching service online.
Call the leaseholder and make an appointment to see the vehicle. Closely examine the exterior for dings and scratches. Check the interior for damage such as rips to the upholstery or cracks in the dashboard. When you assume responsibility for the lease, you also assume responsibility for compensating the dealership for any damage you or the original lessee did to the vehicle.
Ask the leaseholder for a copy of his lease contract. Read the lease contract thoroughly. The lease contract will inform you how many miles you can put on the vehicle each year, if the car is under warranty and the monthly payment amount. Only accept a lease if the car and its terms fit your specifications.
Take the car to a mechanic for a full check-up if it isn't under a factory warranty. Before you assume the lease, you need to know if the car suffers from mechanical problems that will prove expensive to repair.
Call the car dealership where the leaseholder originally leased the vehicle. Ask for the leasing department. Inform the individual you speak with that you would like to assume a lease from one of their customers and ask what documentation you need in order to do so. Each car dealership's requirements vary, but most will want to see proof of your income and proof you have automobile insurance.
Meet the leaseholder at the dealership and fill out the lease transfer paperwork. You must pass the dealership's credit check and provide copies of any documents the dealership requested on the telephone. Either you or the seller must pay a fee for the dealership to process the lease transfer paperwork.