If assuming someone else's lease, several questions can save you money at the end of the lease's term. Learn which question to ask before assuming someone else's lease so you don't find yourself paying more than you expected at the end of the term.
How long is the Bumper-To-Bumper Warranty Period?
Because you'll have to return the leased car in good condition with minimal wear-and-tear, you should make sure that the car remains under its factory bumper-to-bumper warranty during the lease. Many manufacturer's offer a 36,000 mile or three-year bumper-to-bumper warranty, but leases can go beyond this time frame. Check with the manufacturer to determine if the car will be out of warranty before the lease is over, as repair responsibilities become yours. Also, ask to see the vehicle's service history.
Has the Vehicle Been Damaged and Repaired?
Ask if the car has had any body repairs. As long as the damage was minimal (usually under $1,000) and repaired properly, you shouldn't have problems at the time of return. However, if the vehicle has sustained significant damages with noticeable or bad repairs, you may be responsible for further repairs, if any are necessary. For example, all sides of the car should match and all spaces between body panels, trunk and hood should be equally spaced. Check the car over and make sure it looks new, and ask to see any accident repair history. Check the inside of the tires for unequal wear, which may signify frame damage. If the car has been in an accident and you are unsure of the fees that may be due to you, call the leasing bank or simply walk away from the lease assumption.
Can I Review the Lease Contract?
Ask to see the lease contract. Because you will be assuming the lease, all of the provisions will apply to you, so read it thoroughly. Find the mileage allowance and check the odometer to determine how many miles you can drive per month or year, depending on how many months are left. Consider your driving habits, and do not assume the lease if you do not think you can stay under the mileage. The contract will also document the over-mileage fee, which is usually 18 cents per-mile and can prove costly. Also, find out if any lease-end fees exist, also known as a disposition fee, or the amount the leasing bank charges for reconditioning the car for resale. This amount is listed in the contract and is how much you will pay upon lease return. It is not negotiable.
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