The Ultimate Guide to a Car Lease Takeover

Anthony October 25, 2019

The Ultimate Guide to a Car Lease Takeover

If you’re at the stage of wanting to takeover a car lease, you truly understand the value of doing a car lease takeover! For starters, you get to avoid the car dealer at all costs. As you can imagine, I’m not a fan of car dealerships. Furthermore, I’m not a fan of purchasing brand new cars. I mean, what other asset do you know of depreciates that second you take ownership? With a car lease transfer, the economics simply makes sense. In addition to being under the manufacturer’s warranty, you generally actually get money from sellers to takeover their car lease. It’s a win-win.

Luckily for me, at the time of writing this article, I’ve taken over 3 different car leases. All of which were incredibly successful. I’ve been involved in a BMW lease transfer, Mercedes lease transfer, and my latest a MINI lease transfer. I decided to write this ultimate guide to a car lease takeover to help those new to the journey. Because I promise you, once you do it one time, you will be hooked for life! Not only do you get cash back in most instances, you never have to deal with a dealer,  you never have to be locked into a long term lease, plus you get to try so many cars out in such a small time frame, it’s a win-win.

In this guide to a car lease takeover, I will go over:

Car Lease Takeover Deals
Car Lease Takeover Payments
Car Lease Takeover Fees
Short Term Car Lease Takeover – How Short?

Car Lease Takeover Websites
Car Lease Takeover Companies
Car Lease Takeover With Bad Credit
Luxury Car Lease Takeover
Conclusion

Car Lease Takeover Deals

Once your in the market to takeover a car lease, it’s important to find out where the car lease takeover deals are. Lease transfer sites like LeaseTransferClub.com gives buyers access to sellers looking to get out of their car lease leases. When you’re looking at car lease takeover deals, here are some things to look for:

  1. Incentive – if a seller is truly looking to find a buyer to takeover a car lease, chances are he will offer an incentive. As a buyer, this allows you to get cash to takeover a car lease
  2. Pictures – make sure the seller has tons of pictures. If he doesn’t, request it. Make sure to ask the seller if the car has any scratches, dings, dents or tears. If you to takeover the car lease, you will be responsible for those items. This can help you get a higher incentive, or you can ask for those items to be fixed before taking over the lease
  3. Lease holding company – once you & the seller agree on the lease takeover terms, make sure all paperwork is done through the lease holding company.
  4. Accidents – ask if the car has been in any accidents & if so, request the paperwork from the service provider of work completed.

Car Lease Takeover Payments

Car lease takeover payments allow you to pay the exact base rate that the existing lease holder is paying (only addition would be taxes in your state). This figure is non negotiable. What a seller will do to make that lease payment look enticing is provide you an incentive. Let say the car lease payment is $500 with 20 months left ($500 x 20 = $10,000). Now suppose the seller wants to make that car lease takeover payment to look lower, he might offer a $2,000 incentive. Instead of $500/month, the effective car lease takeover payments are $400/ month ($10,000 – $2,000) / 20 months = $400.

Car Lease Takeover Fees

Believe it or not, the fees are rather straight forward. When you’re looking at car lease takeover fees, those figures are as follows:

  1. Transfer Fees: Every lease holding company (ex Mercedes Financial Services) charges the buyer a lease transfer fee. This fee can vary from $200 up to $700+. This covers all the paperwork needed for a car lease take over, including the credit check.
  2. Shipping: Unless the buyer & selling are close in location, chances are you will need a car transporter. Generally, the seller is securing the car transporter. As for the fees, the buyer & seller negotiates this up front.
  3. DMW: Every state is different, but essentially, you’ll be paying a registration fee in your state. Do know the exact figure, contact your local DMV agency

Short Term Car Lease Takeover – How Short?

Every lease holding company has certain rules for car lease takeovers. When it comes to short term car lease takeovers, typically these lease takeover need to be greater than 6 months. There might be some lease holding companies that will allow it sooner, but a majority has it at 6 months as the absolute lowest.

Car Lease Takeover Websites

The whole goal of a car lease takeover website is to provide a marketplace where sellers can list there vehicle to a pool of buyers looking to takeover a lease.  While an ideal buyer is one that is close in location, the reality is you want access to as many buyers as possible. As a result, car lease takeover sites like Lease Transfer Club, should have access to buyers throughout the country. By doing so, you exponentially increase the success factor of finding a buyer for your car lease.

Car Lease Takeover Companies

In an ideal world, you would go back to your car dealer and get out of your lease. Technically speaking, a car dealer let’s you do that, but you’re paying big time for it! Car lease takeover companies actually don’t exist in the truest sense. In the event the buyout on your car is favorable, a car dealer will takeover your payment. Thing is, 95% of the time, the buyout number is higher than what the car is worth. So what you’re left with is a dealer that will take over your car payment, but all he’s really doing is taking that amount & rolling it into your next car lease! You’re basically paying for two car payments while only driving one car. Avoid this at all cost!

Car Lease Takeover With Bad Credit

This is always a tricky one. If a seller & buyer both want to engage in a car lease transfer, the lease holding company decides to approve or deny. I’ve heard of cases where the buyer was denied & then spoke with the lease transfer company. The buyer had to put more money down as security to make the deal happen. Now, this isn’t something that will always happen, but it does give you an option to do a car lease takeover with bad credit.

Luxury Car Lease Takeover

Believe it or not, luxury car lease takeovers have some of the highest incentives out there. Think about it, generally guys with cars with an MSRP over 100k, have no problem giving you more money to get their car off your hands. For instance, one of my car lease takeovers was for a BMW 650i Grand Coupe. With an MSRP of 105k and about 18 months left on the lease, the lease holder needed a larger as his family was expanding.  Not only did the seller pay for shipping, I got an incentive of $3,000. Luxury car lease takeovers are amazing. Don’t forget, these lease holders are more than likely willing to negotiate to. Your downside is if he has multiple parties interested. In that case, car lease takeovers tend to sell quickly. But if it’s available for a while, you will be able to up the incentives.

Conclusion

As you can probably already sense, I really dislike the dealership. Going the car lease takeover route has so many things going for it, that it’s a bit perplexing that most people don’t know about it. For one, you will never see a car manufacturer promoting this. It doesn’t make sense for them, they need more people coming into the dealership to get new cars, not have this booming secondary market where buyers are taking over car leases. At the end of the day, it comes down to information. I hope this guide has helped you look at the car lease takeover market in a different light. If this is your first time, it can feel a little daunting. Before it’s all said & down, you will absolutely be hooked on this process.

 

Categories : How To