Tips on How to Transfer My Car Lease

Anthony October 23, 2019

Tips on How to Transfer My Car Lease

So you’re asking yourself how to transfer my car lease, but not entirely sure how to go about doing it. The biggest issue to get out of your car lease are your options – there barely are any! When you first signed that lease through the car dealer, you had no problem committing to that car for 36 months or so. Sometimes though, life simply happens & you need to get out of it. I’ve taken over 3 car lease transfers & find there is very limited information out there. So I wrote this guide in the hopes it helps educate you in the process, while opening up a whole new world of car leasing abilities where you don’t deal with a dealer! After all, why put money down on a car lease when someone looking to sell their car lease, will actually GIVE YOU money?

In this article, I’ll dive deep into the following topics:

Can I Transfer My Car Lease to Someone Else
How Can I Transfer My Car Lease
Can I Transfer My Car Lease to Another State
Car Lease Transfer Deals
Car Lease Transfer Process
Can I Transfer My Car Lease to Another Dealer
How Much is a Car Lease Transfer Fee?
How Do I Know If There’s Something Wrong with the Car on a Lease Transfer?
Can I Transfer a Car Lease to a Family Member?
Conclusion

Can I Transfer My Car Lease To Someone Else?

As you probably already know, going back to the dealer is a horrible financial option. A better solution is the ability to transfer my car lease to someone else. Thing is, is that even possible? In a majority of situations it 100% is. The first thing you need to do is contact your lease holding company. For instance, let’s say you’re looking to transfer your BMW car lease &  your lease is with BMW Financial Services (if you’re not sure which lease holding company you use, simply take a look at your statement and call the number on it). When you speak to the BMW rep, ask three simple questions:

  1. Am I allowed to transfer my car lease to someone else. The BMW rep will more than likely give you a verbal answer AND provide you some sort of documentation for you review (chances are it’s an article or PDF file on their site.)
  2. Are there any restrictions to transfer my car lease? Chances are, this will be answered in the same article or pdf above, but having this information crystal clear will only help you.
  3. Are there any fees to transfer my car lease? These fees can vary, anywhere from $100 up to $700, depending on the lease holding company

By getting the information directly from your lease holding company, you now have accurate information of what a lease transfer looks like in your specific situation.

Now How Can I Transfer My Car Lease

So you took the step above & you know the parameters to get your car lease transferred. Which brings us to the next step on how can I transfer my car lease. In an ideal world, you already have someone that is interested in your car lease. In this situation, the process if very straight forward.

  1. Contact your lease holding company (same one as above) & tell them you’d like to transfer your car lease to XYZ person. You will need his name & email address. Once you provide this information to the lease holding company. they will send you and the buyer information.
  2. The buyer fills out a credit check. Part of what the lease holding company will send is a credit check application, done directly through the lease holding company. Due to privacy laws, the seller is not able to see this information. There generally is a fee for the buyer to do the credit application. Once completed, it can take up to 2 business days before a decision is made.
  3. The Buyer’s Credit is Approved. If the buyer’s credit is approved, the next step involves the buyer and seller filling out additional paperwork, all of which is completed with the lease holding company.
  4. Paperwork is signed & completed. Now the transfer is complete!
  5. Shipping is arranged & the buyer can now enjoy the vehicle
  6. The buyer can now go to his local DMV to get the proper registration. The seller is able to remove the vehicle from his insurance policy

Can I Transfer My Car Lease to Another State

In an ideal world, you are able to transfer your car close to your house & not have to worry about shipping. But more than likely, you’ll be transferring your car lease to someone that lives out of state. If you find yourself asking can I transfer my car lease to another state, the answer is more than likely yes. There are certain situations where this is not allowed, but to be 100% certain, contact your lease holding company to get a precise answer in your situation

Car Lease Transfer Deals

Chances are, you’ll need to sweeten the pot to do a car lease transfer. Car lease transfer deals involves you providing the buyer an incentive to take over your vehicle lease. For instance, you might pay the buyer’s first 3 months of lease, and/or pay for shipping. The more attractive the car lease transfer deals are, the better the chance you’ll find a buyer. At the end of the day, there are more sellers looking to get out of a car lease, than there are buyers looking to take over a car lease. However, given the right deal on a car lease transfer, you can have multiple buyers vying for your vehicle lease in no time.

Car Lease Transfer Process – Am I Missing Anything?

The steps above show you the details of a car lease transfer process. Think of your lease holding company your main point of contact. Since the lease holding company receives payments from you and from the new buyer, it’s important to know that you ALWAYS have someone that you can speak to. In terms of what you’re missing, once you find a buyer & complete the paperwork, you have open items such as

  1. Car Insurance – If you’re the seller trying to figure out when to remove the leased car from your policy, or are the buyer trying to see when to add the car to your policy, the answer is very simple – call your car insurance company! These experts can tell you exactly when to do , provide you pricing & even some tips to help you in the insurance process.
  2. How to ship my car – Chances are you’ll need to ship your car. First you need to figure out with the buyer how this is getting paid. Chances are the seller is finding and securing the car transporter.
  3. Do I need to go to DMV – The buyer will need to go to his local DMV to properly register the vehicle in his state.

Can I Transfer My Car Lease to Another Dealer?

You can probably tell by not I’m not a fan of car dealers. I’ll get deeper into this at another time, but if you’re trying to see if you can transfer your car lease to another dealer, the technical answer is no. What you’re really doing is letting the dealer straight up purchase your vehicle. Thing is, this rarely happens. A dealer would be more inclined to give you money (with interest of course) to pay off the remaining months of your car lease. These deals are horrible as you are basically paying for two cars but only having one!

How Much is a Car Lease Transfer Fee?

You guessed it, transferring a car is not free! After all, car manufactures make billions and billions of dollars, why need squeeze a little more out of you. Here we enter with a car lease transfer fee. Basically, the first step of a the process is a credit check on the buyer. Even if the user does not quality for a car lease transfer, the buyer will still need to by a car lease transfer fee. Not fair right! Generally, the fees are less in this case, but the buyer is still paying something. I’ve seen anywhere between $50 to $200. Now if you actually go ahead and transfer a car lease, the fees can be anywhere from say $200 – $700. Generally, the car lease transfer fee is $500.

How Do I Know If There’s Something Wrong with the Car on a Lease Transfer?

The biggest fear from the buyer side when taking over a car lease is making sure there’s nothing wrong with the car. It actually is the #1 fear.  So let’s dive into that. The vehicle is still covered under the manufacturer’s warranty. So the big major stuff, you don’t have to worry about. What you’re left with are bumps/scrapes, tires & brakes.

Bumps / Scrapes – for the person taking over a car lease, you are responsible for turning in that car at the end of the lease. While most manufacturer’s give you a tiny bit for wear and tear, large bumps, scratches, dents are now your responsibility.  To put the buyer’s mind at ease when you’re transferring a car lease, make sure to show several pictures. Declare any sorts of marks/dents on the vehicle that the buyer might have to pay on lease turn-in. By being up front, that buyer will gladly work with you. If there’s a dent, you can either have it fixed or simply give the buyer an extra incentive to offset that

Tires – Wear & tear on tires is rather self explanatory. Sports cars & rear wheel drive vehicles tend to go through tires quickly. If you already replaced the tires, tell the buyer that. Newer tires are always a positive selling point

Brakes – If a buyer is worried about alignment or brake issues, you can always show the last service you did on the vehicle. That generally will be sufficient for the buyer taking over your car lease.

Can I Transfer a Car Lease to a Family Member?

Absolutely! To protect yourself, you should still go through your lease holding company. You might want to save money and simply change the bank account from yours to theirs, but the amount of downstream liability can still flow to you. Doing everything through the lease holding company on a car lease transfer removes the liability on your end. While I completely understand it’s tempting to “keep it in the family”, a car lease transfer involves a third party. One in which has the means to financially & legally go after you if you don’t abide by the terms. After all, have you ever read the entire small font lease agreement? Exactly, no one ever does. It was written by highly priced lawyers to 100% protect their interest, not yours!

Conclusion

At the end of the day, a lease transfer involves people. One person is trying to get out of a car lease while another is looking to takeover a car lease. When you’re dealing with people and NOT a dealer, it’s a lot easier to get a deal done. Furthermore, all the insane fees a dealer charges you is out the window. Granted, there’s a level of trust needed here. The fascinating part are the people involved. Generally speaking, the person getting out of the lease wants to as bad as the person wanting to takeover a lease. It truly is the perfect storm of making a car lease transfer work for all parties involved. 

Categories : How To