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An
alternative for people facing large, lease-end "extra wear and tear"
fees or "extra mileage" fees -- which can run 10 cents a mile
and up -- is to consider a third-party buyout called car lease
transfer. Specially if you think you can sell the car lease for
more than it would cost you to buy the car yourself and pay the early
car lease termination dealer fees.
You can publish the car lease in TradeAlease.com
and have the leasing company sell it to a third party. The trick is to
make sure you're not assessed sales tax twice and that your leasing company
allows third-party buyouts before you count on it as a solution.
Even if your leasing company is a willing participant,
it's important to investigate what you truly stand to benefit. Both Hearn
and Stiberman caution that third-party buyouts
are not the best bet for everyone.
"In 99% of the cases, I would say it makes
sense to return the vehicle," Stiberman says. "At the moment
the initial car lease is made, the car leasing company sets a residual
value for the vehicle that tends to be higher than what the market value
of the vehicle is at (return) time." This
can make it difficult for you to sell a car lease at a high enough price
to cover your expenses entirely -- but if nothing else, you could mitigate
your losses.
A final word
It should be noted that while these sites offer
their services for a fee, it is sometimes possible to make transfers by
yourself. Hearn simply cautions that in all cases, the leasing company
must be involved.
"Before these services came along, it was
not uncommon to see classified ads in local papers from people trying
to get out of their leases," Hearn says. "But in many cases,
the lease company wasn't informed. The people (selling their leases) didn’t
realize they were still liable for the lease if the new person stopped
making payments or the car disappeared. They were just looking for someone
to assume the car payments."
Car Lease Assumptions or better called car Lease
transfers are a great option if you would like to end a car lease early.
But the fees involved mean this is not get-out-of-jail-free card even
though you are still saving thousands dollars in dealer fees. Still the
best way to not pay extra is to complete the original lease terms.
Car
lease transfer: a win-win-win-win situation
Of
course, if you're the person taking over the car lease, you can negotiate
to have the previous lessee pay for all fees. Many of the listings include
seller incentives, sometimes offering a couple thousand dollars to buyers
up front. Even without cash incentives, leases on these sites are potentially
far better deals than you would be able to negotiate at a dealer.
"The best example would be a luxury vehicle,"
Stiberman says. "When you take on the remaining lease, you won't
have to come up with a down payment. You can get into a luxury car for
a shorter term but at the same rates as someone who made a big down payment
or had a longer lease."
It seems everyone
wins with car lease transfers. The person getting
rid of the auto lease may get out for far less than he would have with
his original company; the person assuming the car lease stands to find
a great deal, and the sites make money facilitating the whole car lease
transfer process. The leasing companies are happy, of course, because
they'll continue to collect monthly lease payments.
Car
lease transfer services - Car
lease transfer specialists
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