How to Assume an Automobile Lease

You need a new automobile, but times are tough. You know you can make the monthly payment, but have little to no money to put down. With preparation it is possible to assume the payments of someone else's automobile lease. Armed with knowledge you can easily avoid the pitfalls of auto leasing while reaping the benefits.

Instructions

Find Your Automobile

1

Determine your needs. If you have a family of six, a compact car is unlikely to satisfy your day-to-day driving requirements. Be realistic about which make and model best fits your lifestyle, even if it means you'll have to wait another few years to drive that sports car.

2

Decide what's important to you in a vehicle. Are you looking for a prestige car or a work horse? If you have a long commute to and from work, it may be more important that you opt for a fuel efficient car. If the farthest you drive is to church on Sunday or your grandchild's dance recital, you may find that a less frugal automobile more to your liking.

3

Set a realistic budget and stick to it. If you predetermine how much you can afford to spend in monthly payments you are much less likely to impulsively sign on the dotted line for the first car that catches your fancy. Remember, you're going to have to be able to live comfortably with the monthly cost of any auto lease that you assume.

4

Do your research. Websites like MyProductAdvisor and autoebid can help you winnow down your choices to the cars that best suit your circumstances.

Make a Deal

5

Find a lessee looking for someone to assume his lease. Shop for this lease assumption like you would any new car purchase. Check newspaper ads, online sites such as Craigslist, and websites, such as LeaseTrader.com and TakeMyPayments.com to get started.

6

Check out the company or individual that you're dealing with, whenever possible. You want to know who you're dealing with before you commit to signing your name. Check the Better Business Bureau and conduct an online search for any signs of a red flag.

7

Don't be afraid to ask for the moon. Many people are desperate to get out of their leases during these tough economic times. According to Lucy Lazarony of bankrate.com, some people are going so far as to offer cash incentives. Lazarony claims that it's not unusual for a person to drive away with a car and $500 to $1,000 in his pocket.

8

Lock down financing. Assuming the current lessee has called his leasing company to make sure the loan is assumable, you'll need to pass a credit check. Many leasing companies charge in the neighborhood of $300 to transfer the lease, so make sure it's understood that the current lessee will be paying that fee. While a verbal agreement is nice, you'll want to have this agreement in writing before beginning a credit check.

Protect Yourself

9

Taking over a auto lease is not without risks. Remember that any dings or other body damage the current lessee has inflicted upon the automobile become your problem. Any harm to the interior or mechanical problems will likewise be yours. Spend the money it takes to have the car thoroughly inspected before assuming the lease. Better yet, negotiate for the current lease holder to pay for the inspection.

10

Know what to look for. You don't want to assume someone else's problem. Just because the current lessee paid too much for his car does not mean that you need to do the same. LeaseCompare.com is just one of the websites that will help you decide a fair price for the automobile you're looking to lease.

11

Investigate what's left on the lease. How many miles are remaining before you'll be expected to pay the per mile premium? What about the warranty? Will it last for the duration of time you expect to be driving the car?