Car Leasing Center Lease Take Over Paperwork

startmoment ik kyoto 2009

Image by BondBeterLeefmilieu via Flickr

I have a few people each week asking me “how can I take over a car lease?”

If you find you are in a situation:

1. Where you need a vehicle but really don’t have the time to shop at the moment;

2. Your situation has changed and you need car but something short term,

3. Want to lease a vehicle but the rates at the moment are just out of this world for the vehicle you want, but you need a car and leasing is the way you want to go,

An alternative to buying vs leasing a car would be to assume or take-over a lease from someone who is trying to get out of one.

If you have read past posts on the idea of assuming or taking over a lease, you will know that the best place to find a car lease take-over is Lease Busters. Through their website you will find postings of people trying to find someone, like you, who is willing to take-over their lease. You’ll find a wide range of vehicles and of course lease payments.

Through past posts you will also receive some guidance as to what to look for when assuming someone’s car lease payments and some things to consider before you take on the car lease obligation.

Assuming you have done your homework and you are ready to take over someone’s car lease payments, the next step is the paperwork, which is what we are going to cover today!

Ideally, you’ll want to go back to the originating dealership, but sometimes that isn’t always easy due to distance etc. If you aren’t able to, then go to the dealership of the brand whose car lease you want to take over.

You are going to find that in addition to the transfer fee that the mfg charges, some dealerships charge a car lease transfer fee as well. Make sure you ask ahead of time so that you know fully ALL charges so that you aren’t surprised when you go in to sign the paperwork.

You will be required to fill out a credit application to get approval. Make sure you have the VIN of the vehicle, name of the current lease customer and kms of vehicle.  That information is going to be passed on so that the financial arm knows what car lease you are taking over.

Once the approval is granted it takes usually 48 hours for the paperwork to arrive to the dealership. In the meantime have the following things ready to go:

1. arrange with the person whose lease you are taking over, who is going to pay the transfer fees and what those fees actually are,

2. let the dealership know if you are needing new plates or if you are transferring existing plates. If a plate transfer make sure they have at least the plate number.

3. you will be required to make your first lease payment upfront, so ensure you have that money available via bank draft – the dealership will advise you,

4. you will be required to have the proper car insurance. Again, the dealership will be able to provide your insurance company with the necessary paperwork. You make the initial call to your car insurance agent and provide them with your point of contact at the dealership and they can fax the paperwork that is needed

Once the paperwork arrives at the dealership, you and the current leasing customer will be required to go and sign off on the paperwork. When you go ensure you have:

1. car insurance in place,
2. your first month’s lease payment,
3. a VOID  cheque 
4. if a plate transfer, make sure you bring the plates with you

The paperwork is pretty straight forward, you are accepting the terms and conditions that were originally arranged. If the current leasing customer has any sort of WorryFreeXS or WEARCARE (the damage insurance where you are covered for up to $3500 in damages to the vehicle when returning it), then that is transferred over as well. 

It is a straight forward lease take over process, but make sure you are aware of all the fees and payments ahead of time. Understand as well that the dealership is the middle man in that they handle the paperwork part of the whole car lease transaction, all arrangements as to who is paying the transfer fees, etc are arranged between yourself and the current leasing customer, the dealership doesn’t get involved.

There are some good deals out there when it comes to taking over a car lease, just take your time and make sure you understand the process well so there isn’t any misunderstanding.

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