May 27, 2019
The advantage of transferring your car lease, or taking over someone’s lease, is HUGE! Avoid the dealer at all cost & save thousands upon thousands. Here are some transfer car lease tips:
Sell Your Car Lease
Takeover a Car Lease
How to Find a a Buyer for Your Car Lease?
You have very limited options when it comes to selling your car lease. If you find yourself asking how to transfer my car lease, you need to look at present options.
Option 1 – Car Dealer
You can always go to any car dealer to take the car lease off your hands. By far, this is the priciest option. When you’re at a dealer, trying to trade in your lease early, there’s two main scenarios – both of which aren’t ideal. First, the dealer can simply buyout your car lease. The issue here is most dealers, will not do this. Quite simply, the math doesn’t back out for them. Instead, they will sell you on the second scenario, paying off your lease. If we learned anything, nothing comes for free. Let’s say your monthly payment is $500, your lease turn in fee is also $500, and you have 12 months left. That means you have $6500 in payments owed, which does not include any wear & tear or mileage overages. (12 months * $500 + $500 turn-in). All a dealer will do is take that $6500 and roll that into your new lease. Before you even get to paying for the new car, you’re already paying $181/month for nothing! A true salesman will tell you there’s amazing incentives on the new model, but those incentives are there regardless if you have an existing lease or not! So from a pure match perspective, this is a horrible way !
Option 2 – Transfer Car Lease to Family / Friends
This one isn’t so bad, it’s just the pool of people available is incredibly small. Let’s say you have a family member or friend interested in taking over your car lease. As long as they still qualify with the lease holding company (ex BMW Financial Services), then this scenario ideal but VERY difficult.
Option 3 – Lease Transfer Club
How could we not plug our own service :-). Lease Transfer Club is a marketplace that was created to match up existing lease holders with buyers looking to takeover car leases. Additionally, our service is here to help educated potential lease sellers & lease buyers.
Should I Offer an Incentive?
Let’s face it, buyers love incentives. When it comes to car buyers, particularly when getting an auto lease through a dealer, a buyer is always putting some form of money down. So when a lease transfer comes along where the seller is looking to give the buyer money to takeover a car lease, that car lease now looks incredibly attractive. Remember, as a seller, you are competing against all the other leases out there looking to sell their lease. This of course is entirely up to you. You can always start the listing without an incentive then add it later if you aren’t getting any bites.
What Do I Do After Finding a Buyer?
This is when the fun starts. When you’re looking to do a car lease transfer, it comes down to the buyer being credit worthy for the lease transfer company (ex BMW Financial Services). So even if the buyer loves your car lease & your terms, if the lease holding company doesn’t consider them credit worthy, it will never happen. So the first thing you do is contact your lease holding company. From here, you would indicate that you are looking to transfer your car lease. The rep at the lease holding company would start the process in determining if the buyer qualifies. Most lease holding companies will charge a nominal fee at this point – regardless of the buyer is approved or not. If approved, both buyers & sellers fill out the paperwork from the vendor. Once the paperwork is completed & approved, the transfer from the lease holder’s perspective is complete.
How Do I Get the Car to the Buyer?
Most of the times, the buyer you find does not live close to you. As a result, there’s a good chance your car lease transfer will involved it being shipped. There are several vendors that will ship your car & getting quotes from them is rather quick online. Get a couple quotes and determine how long it would take to do the transfer. In terms of fee, this is something you and the buyer can discuss on how to get it paid.
When Should I Remove the Car from My Car Insurance?
This is a great question. One in which you should ask your insurance provider to get an accurate answer on. When you call your insurance provider, indicate that the car lease on your policy has been officially transferred by the lease holder to the new buyer. You’ll want to indicate when the buyer will receive the vehicle & if there’s any sort of coverage you should have until that time.
What Questions Should I Ask the Existing Lease Holder?
Believe it or not, most individuals looking to takeover a car lease have never done it before. As a result, communication is extremely important. The best tip we can provide with communication is being direct. Once you and the buyer agree on the terms, ask him (or her) how quickly can he fill out the paperwork from the lease holding company. If the buyer is serious, he will say immediately. What we find, in lease transfer situations, the sellers are extremely motivated to sell & the buyers are extremely motivated to get that car lease. This makes getting the process completed in an efficient and quick manner.
Should I Get the Car Inspected by a Third Party?
If you’re looking to takeover a car lease, making sure the car is in great shape is extremely important. Generally when you turn a lease in, the lease holder (potentially you) is allotted a small dollar amount for minor dings and scratches. If there’s more than the allotted amount, you will get charged for it. So it’s important that you understand the condition the vehicle is in. It comes down to 2 options:
- Hire a Third Party Inspector – There are services out there (easily found through Google) where they will go to you vehicle and provide you a detailed report. This will give you that piece of mind to move forward. The downside, it’s not free, which ads to your cost of getting the car lease transfer.
- Ask the Seller Questions – You can always ask the seller to provide additional photos if there are areas you want to look at. Between specific questions and photos, it might provide you confidence that you need to move forward.
What Happens After the Seller & I Agree on the Car Transfer Details?
After the emails & negotiation of the finer terms, the next step is for the seller to start the process with the lease holding company (ex BMW Financial Services). The next step that occurs here is for the lease holding company to determine if you, the buyer, qualify to takeover the lease. Once you fill out those details from the lease holding company, you’ll find out if you qualify for the lease transfer. If you do qualify, then you are in the home stretch. In order to finalize the car lease transfer, it’s a matter of the buyer (you) and the seller to complete the paperwork. All communication at this point would be between you and the seller, and you and the lease holding company if you had any specific questions.
How Does it Work to Ship the Car?
Most lease transfers involve the vehicle being shipped. Sometimes you luck out and find someone luck to complete a car lease transfer, but the percentages are lower. As a result, generally the seller will find a service to ship your vehicle. You and the seller would determine on how to pay for that vehicle to be shipped.
When Should I Get the Car Insured
When completing the paperwork with the lease holding company, they will request for you to have the vehicle insured. Without it, the lease transfer request will not be accepted. In some instances, you have the ability to put a date for when the policy will be active. You’ll want to contact your insurance provider to have an accurate answer, but better to have it on early than on to late!
How Does it Work With DMV
DMV is the very last step. Once the lease holding company have all the paperwork completed & approved, they will ask you for the DMV you would like the information sent to. At that particular facility, you can go ahead and pay the appropriate fees to your state. Every state has different timelines & fees.