Comments on: Car Lease Question

Question: Car Lease Question

Raybun — Thu, 13 Jul 2006 04:45:57 -0800

How to get out of a car lease with the least amount of pain. A family member leased a car for commuting after she ran the numbers and found that a lease was less expensive than purchase and then private sale after five years. They are now working from home and do not need a personal car. The lease holder will take the car back, sell it at auction, subtract that from the balance on the contract and she will make up the balance. This balance due for early release number is about $5K over the retail sale value of the car. Anyone out there who has dealt with this problem? Can leases on cars be transferred?

By: COD

COD — Thu, 13 Jul 2006 05:15:55 -0800

Can she buy out the lease instead, and then sell the car privately? I doubt she will break even that way, but it might minimize the loss on the transaction.

By: white_devil

white_devil — Thu, 13 Jul 2006 05:23:02 -0800

If the leasing company will let her transfer the lease there are a few websites that assist in helping lease holders to find people willing to take over their leases. This is just one of them.

By: antifuse

antifuse — Thu, 13 Jul 2006 05:51:46 -0800

Not sure where you are, but at least in Canada, there's Leasebusters.com as well.

By: blue_beetle

blue_beetle — Thu, 13 Jul 2006 06:24:13 -0800

Swapalease.com

By: docgonzo

docgonzo — Thu, 13 Jul 2006 07:15:38 -0800

Mrs docgonzo and I just picked up our sweet, sweet ride from a fellow on (toronto) Craigslist. He wanted to get out of his lease as he was no longer commuting. We picked up the payments, paid half the transfer fee and got new plates. Saab/GM was more than happy with the arrangement.

By: blue_beetle

blue_beetle — Thu, 13 Jul 2006 07:24:38 -0800

fixed link - Swapalease.com

By: 10ch

10ch — Thu, 13 Jul 2006 08:24:49 -0800

If you decide to buy out, then sell... Know that some US states charge significant use tax on title transfers (especially for lease buy outs).

If your state does this, normal title transfers charge use tax as a percentage (e.g. 3%) of the car's KBB value. But lease buy outs use the value of the lease buy out, which is likely thousands of dollars more than the actual value of the car.

Say the buy out is around $20k, this could be an unexpected and unrecoverable charge of five or six hundred dollars. Swapping may be the best option.

By: hatsix

hatsix — Thu, 13 Jul 2006 09:49:28 -0800

I've heard good things about: Lease Trader. Put a $2000 bonus on the lease, and you'll get rid of it in no time.

By: schoolgirl report

schoolgirl report — Thu, 13 Jul 2006 11:09:04 -0800

I assigned a lease to my stepfather after Swapalease failed to turn up any interested parties. It's pretty painless, though there will be a fee of some sort (split it with the other party). The leaseholder will give you all the paperwork you need.