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Old 20.10.2019, 20:48
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Car leasing transfer

Hello Everyone,
Can anyone tell me if car leasing transfer is possible and what’s the process?
We haven’t found a buyer yet but want to know if its cheaper than terminating the 4 year contract. Basically we took 4 years lease and already used the car for a year. But dont want to continue it for next years..
Thanks
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Old 20.10.2019, 21:19
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Re: Car leasing transfer

Sorry, but only and idiot would take over someone's lease, unless you offered them a lot of cash on top to take it over.

But, yes, it is possible, just very unlikely.

Tom
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Old 20.10.2019, 21:21
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Re: Car leasing transfer

Yep that is possible, but beware of the enormous amount of value-degradation in the 1st year.

Look in your contract or contact the lease company to ask what the administrative costs of a transfer are.

And compare what they would give/ask for handing in the car, with what you could get on the free market. (don't just compare with normal 2nd handed cars since they have no restrictions)
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Old 20.10.2019, 21:35
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Re: Car leasing transfer

Be very careful with terms and conditions.. Both you and whomever might take it over ..

I took our current car on lease at the beginning of the year.. Between my employers discount, 0% leasing, 'special weekend' discount, display model discount, great trade in price.. .. etc etc etc.. I saved over 35k on the list price.. In theory I could have driven out and sold the car straight away for a 20k profit..

Of course they know this so add in various clauses about early redemption .. So be careful out there.

Not that I'm unhappy with my deal .. I had no intention to walk out and sell it .. But they build in safeguards against early sale and transfer.

Edit : To the OP .. I've seen many adverts for cars on here

Last edited by John_H; 20.10.2019 at 21:40. Reason: adding in the lease transfer website
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Old 20.10.2019, 21:44
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Re: Car leasing transfer

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Sorry, but only and idiot would take over someone's lease, unless you offered them a lot of cash on top to take it over.

But, yes, it is possible, just very unlikely.

Tom

Thanks, I’m asking about the feasibility of lease transfer not about potential buyer.
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Old 20.10.2019, 22:07
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Re: Car leasing transfer

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Sorry, but only and idiot would take over someone's lease, unless you offered them a lot of cash on top to take it over.

But, yes, it is possible, just very unlikely.

Tom
Oh I could be an idiot taking over a lease, problem I have with most offers is that way to often people simply ask to much compared to an unrestricted equal 2nd handed offer. Look at the topics we had on EF with people offering lease cars, almost always prices that really in no way represented the actual value. I mean if they only paid 5K upfront, and the car is 2 years down on a 5 yr plan, than I want money along with the deal instead of having to pay or just take over.
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Old 21.10.2019, 04:46
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Re: Car leasing transfer

let's say a car is worth X in today's market

The remaining monthlies plus the residual, is Y

If X>Y, that means you have some equity in your leasing, if X<Y then you're underwater, so you will sell your car and still owe money.

This is the basic calculation, depending on first payment, residual, monthly, and current value, you can understand if someone will take it as is, if you can get some money back, or if you have to pay someone to take over.

You would also have to calculate in some admin costs or penalties, but again unique to your situation.

Don't lease unless you're very very sure that you want to keep the car for at least more than half the leasing period, it's very expensive to get out of it in the first half, even if you want to cash cover the balance and buy the car outright.
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Old 21.10.2019, 10:14
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Re: Car leasing transfer

Sorted from your best to worst options:
  1. Find someone to take over the lease
  2. Lease buyout and sell (no fine)
  3. Lease termination (early termination fine)
For #2, you'll have to determine whether this makes sense for you based on the residual value + outstanding payments vs. market value.

Last edited by Harrie Nak; 21.10.2019 at 10:27.
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Old 21.10.2019, 12:03
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Re: Car leasing transfer

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Thanks, I’m asking about the feasibility of lease transfer not about potential buyer.
From the legal point of view it is a non brainer as them same law as for real estate leases applies: Art. 264 Code of Obligations, plus what ever is written in your leasing contract.

Thus, the feasibility of a transfer is directly linked to the price a potential buyer/substitute will have to pay. If the price is too high you must hope for a complete fool.

If it is cheaper to transfer the lease, buyout the car, or the end the lease depends on your down payment, duration of the lease, remaining period, and residual value at termination of the lease. These factors determine if you are beyond or in front of the depreciation curve.
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Old 21.10.2019, 12:33
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Re: Car leasing transfer

yes of course its possible, all you need to do is find a mug who passes all the lease companies credit checks etc and sign it over, your lease company will tell you exactly whats needed.

Finding that mug is the hard part, someone who'll take a car you spec'ed up and is willing to bail you out of a huge finance hole, as other have pointed out that would usually involve you having to pay the new guy quite a lot of money, but without knowing what the car is, how much down payment you made, what then lease term is, what the monthly payment is, what the final payment is, what the annual KM limit is and most importantly how far over that limit you've already gone, its hard to say

EF has yet to have anyone offer a decent lease take over, they are usually quite comically bad.
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Old 21.10.2019, 13:05
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Re: Car leasing transfer

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yes of course its possible, all you need to do is find a mug who passes all the lease companies credit checks etc and sign it over, your lease company will tell you exactly whats needed.

Finding that mug is the hard part, someone who'll take a car you spec'ed up and is willing to bail you out of a huge finance hole, as other have pointed out that would usually involve you having to pay the new guy quite a lot of money, but without knowing what the car is, how much down payment you made, what then lease term is, what the monthly payment is, what the final payment is, what the annual KM limit is and most importantly how far over that limit you've already gone, its hard to say

EF has yet to have anyone offer a decent lease take over, they are usually quite comically bad.
Out of interest ..

Is it never a thing to simply take over the lease on the current terms, a name change simply? I mean assuming the other person liked the car and the terms?

Can you ever just "give it back" ?
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Old 21.10.2019, 13:07
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Re: Car leasing transfer

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Can you ever just "give it back" ?
Art. 264 Code of Obligations. Lease contract might have some favorable terms.
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Old 21.10.2019, 13:14
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Re: Car leasing transfer

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Out of interest ..

Is it never a thing to simply take over the lease on the current terms, a name change simply? I mean assuming the other person liked the car and the terms?

Can you ever just "give it back" ?
You can always give it back, but you'll be liable for the financial terms/penalty's you agreed upon.

And yes, taking over the lease on current terms is basically just a name change on the contract. Complication however is that estimated end value + remaining payments hardly ever are equal to the value of the car.

Simple example: (ignoring interest and such)

Car New 75.000,-
Lease 5 years
End value 25.000,-
Front payment 10.000,-
Monthly payment 40.000,- / 60 = 666,67

After one year a total has been paid of 18.000,- But a car often loses easily a 3rd of the value in the first year which would be 25.000,-

So if I would take this car over from you I would demand 7.000,- cash along with the car, but make that easily 10.000,- minimum due to the limitations and interest. Problem is that not many people want to pay 10.000,- to sell their car.

Surely the car can be given back to the lease company, but they also demand compensation for the high degradation.
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