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post #1 of 17 (permalink) Old 04-13-2011, 12:56 AM Thread Starter
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Assuming Car Lease?

Has anyone here ever assumed lease payments on a car / transferred a lease?

I'm in a situation now where I need to get a decent car and sell my POS van, but I'm not 100% certain for how long I will stick with sedan / coupe (vs SUV or sporty two seater). Was looking to buy a nice used car and stumbled across a post elsewhere offering to assume a lease for 13 months.

It would work well for me because of short term commitment. Sure I'd lose on building up equity in a car, but not a whole lot, really, because if I'd buy a similar car it would depreciate by a comparable amount.

The remaining mileage on the car I'm looking at is much more than I will drive in 13 months, the payments are reasonable, there is a transfer incentive and the car is in pristine condition judging by the pics.

What I'm wondering about is what gotchas I can run into and how difficult is it to do, especially considering the fact that the car is in another state (FL).

Any insights and suggestions would be greatly appreciated

- Stas

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post #2 of 17 (permalink) Old 04-13-2011, 01:19 AM
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I assumed a lease from a co-worker back in late 1995. It was through GMAC. He originally leased the vehicle in MI, we both moved to CA and after 4 months of being there (he already registered it in CA) I took over. We just both sat with GMAC on the speakerphone and told them what we wanted to do, they faxed us some paperwork, I signed it, faxed it back with a copy of my DL, took possession and the bills started showing up at the house. They took care of the DMV part, which surprised me (not sure if that would be the case for FL-->IL though). I used up the remaining year and a half on the term and then took it to a local dealer and leased another vehicle.

It probably will come down to how well the current leasing company can process it and what hoops they make you jump through now. I was still under the original terms as far as mileage went, but there was never any danger with that due to what he agreed to initially... and you think that won't be a problem either, so there you are. Vehicle also had a warranty on it, but that was never needed either. It was a 3 yr lease... he did 1.5 yrs and I did the remainder. Just make sure the condition is sound and as pristine as you think it is... as YOU are liable when the lease is up for anything wrong with the vehicle since you assumed the contract terms. Get a copy and READ IT first.

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post #3 of 17 (permalink) Old 04-13-2011, 01:28 AM
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Just make sure the condition is sound and as pristine as you think it is... as YOU are liable when the lease is up for anything wrong with the vehicle since you assumed the contract terms. Get a copy and READ IT first.
This would really be your only issue. And it is a big one. If there is hidden damage/problems that the dealer finds when you turn it in, you are out the cash for whatever the repair costs.

An advantage to assuming a lease: if the guy made a large down payment when he began the lease then your buyout option at the end of the lease could be very attractive. It's basically leasing a car for a shorter term, gaining all the advantages of a large down payment without having made one.

I never thought about it until you made this thread, but this may be the best way to get a car. Assume a lease from someone who made a large down payment.

"includes 10 used-car dealers or auto repair shops, 11 liquor stores and bars--two of which advertise lingerie fashion shows and a third billed as a "gentlemen's club"--three cut-rate motels and one trailer park. The squat, brick municipal building is next to a currency exchange and a few steps from an adult video store. The bars open at 10 a.m. and close at 6:30 a.m."

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Something must be fishy...I am going to go poke around in the back end..

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post #4 of 17 (permalink) Old 04-13-2011, 02:12 AM Thread Starter
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Good info so far, please keep it going . Thanks a lot, Arch!

Yes, there are pics of the car and it looks clean. It seems that the person cared for it very well. I'm also thinking it may make sense to check the service records. Yes, it is possible, of course, that there may be hidden damage. I'm not sure there is a reliable way to check for that. May be have an independent shop look it over. Otherwise the car is still under manufacturers warranty of course, so if anything breaks, it should be covered.

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post #5 of 17 (permalink) Old 04-13-2011, 02:24 AM
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Distance sucks in this case, but NOTHING beats your own eyes going over it before committing to look at it from the perspective of: "I'm the dealer guy and this is what is getting turned in... what can I find to fuck this guy over and make him pay?"

*THAT* is how you have to make your initial evaluation. If that passes the sniff test; anything after that is rightfully your fault.

GET A COPY OF THE LEASE TERMS FIRST before going one step further... make sure they are something YOU agree to as well; because that is what you will be doing.

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post #6 of 17 (permalink) Old 04-13-2011, 02:31 AM
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Not sure if you can, but you might try to find out what accessories the dealer expects back. Could be stupid shit like floor mats, cigarette lighter, donut, first aid kit, etc. But the costs of a few of those things could put you over $500 quick.

"includes 10 used-car dealers or auto repair shops, 11 liquor stores and bars--two of which advertise lingerie fashion shows and a third billed as a "gentlemen's club"--three cut-rate motels and one trailer park. The squat, brick municipal building is next to a currency exchange and a few steps from an adult video store. The bars open at 10 a.m. and close at 6:30 a.m."

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post #7 of 17 (permalink) Old 04-13-2011, 02:48 AM
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Not sure if you can, but you might try to find out what accessories the dealer expects back. Could be stupid shit like floor mats, cigarette lighter, donut, first aid kit, etc. But the costs of a few of those things could put you over $500 quick.
...which should all be spelled out in the original lease terms.

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post #8 of 17 (permalink) Old 04-13-2011, 08:01 AM
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Don't do it. It sounds like a deal, but it's not. Unless you can see the vehicle right now, and know the person personally, it's a waste of time. Stupid as hell to rent a car for months, piss your money away and getting NOTHING back in return

Unless you have a company that's supplying u the car, leasing a car is stupidest god damn thing people can do. We, as sport bike riders, always try to save $$$, but here is an example of pissing money away. Nothing personal dude. Just trying to point this stupid level of thinking out. Everyone I know that's leased cars, have only done it once. U piss $ away, even buying tires as needed. And u WON'T get that $ back. Don't do it. No matter how good the price is. Dumb dumb dumb. I leased a truck once. Never again. Buy it or walk away.

...plus my gf was with me saying "omg slow down, slow down" and I was thinking "Lose annoying squalk box in passenger seat, afford more mods and have less weight in the car and on the back of the bike"...so i dumped her and I'm single again as usual...HERE KITTY KITTY!!!
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post #9 of 17 (permalink) Old 04-13-2011, 08:20 AM
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a car is not an equitable asset and loses a lot of value just by driving it off the dealer lot. also, typically leases are for a lower payment than what the car would cost had you bought it. So you're paying for the depreciation one way or the other, and by leasing you don't have to worry about handing the car over when you're done, often with the chance to buy out the lease which could have some favorable terms.

you may not like them but leases must be valuable to some people or nobody would do it.
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post #10 of 17 (permalink) Old 04-13-2011, 08:42 AM
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a car is not an equitable asset and loses a lot of value just by driving it off the dealer lot. also, typically leases are for a lower payment than what the car would cost had you bought it. So you're paying for the depreciation one way or the other, and by leasing you don't have to worry about handing the car over when you're done, often with the chance to buy out the lease which could have some favorable terms.

you may not like them but leases must be valuable to some people or nobody would do it.
+1

some people don't know anything because they're liberals.


some cars lose 2,000 in value every year. I know people that lease so they can get a new car every few years. Makes you look rich too.
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post #11 of 17 (permalink) Old 04-13-2011, 08:42 AM
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Some of the richest people in the world say "Never *buy* a depreciating asset".

Everyone Exaggerates

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post #12 of 17 (permalink) Old 04-13-2011, 04:36 PM Thread Starter
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Originally Posted by whiteSeatEnvy View Post
Not sure if you can, but you might try to find out what accessories the dealer expects back. Could be stupid shit like floor mats, cigarette lighter, donut, first aid kit, etc. But the costs of a few of those things could put you over $500 quick.
Good point. I think it basically comes down to what Arch said: need to check the lease agreement very carefully. But specifics are always best of course.

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post #13 of 17 (permalink) Old 04-13-2011, 04:40 PM Thread Starter
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As far as lease vs buy, I understand both sides. Like it's already said above, it comes down to a lifestyle. I usually prefer to buy, but at the moment my life is getting so busy and my time is costing more. So, considering the fact that I'm paying for depreciation one way or the other, the cost of having to sell the car and do the repairs if I keep it for very long may outweigh the added cost of lease.

The biggest factor though is the fact that I would much rather prefer a short term commitment at this point, for a variety of reasons.

We can debate lease vs. buy to no end...

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post #14 of 17 (permalink) Old 04-13-2011, 04:41 PM Thread Starter
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Another question specifically about lease transfer: does anyone know the tax implications? Would I have to pay taxes on transfer? Technically they should be already paid, but... Plus, what happens when the lease is out of state?

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post #15 of 17 (permalink) Old 04-13-2011, 04:51 PM
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Good info so far, please keep it going . Thanks a lot, Arch!

Yes, there are pics of the car and it looks clean. It seems that the person cared for it very well. I'm also thinking it may make sense to check the service records. Yes, it is possible, of course, that there may be hidden damage. I'm not sure there is a reliable way to check for that. May be have an independent shop look it over. Otherwise the car is still under manufacturers warranty of course, so if anything breaks, it should be covered.

to add to what arch said about checking it out this is what I would do if I were in your position. Being states away makes this difficult though.

I would take the car to a dealer and pay them an hour of their time to go over it as if THEY were taking it back from a lease what they would note to the lease company and get it in writing. take that to the seller and come up with an amicable solution if there are any fees that they would assess.

After buying (and not buying) a car out of state I would also advise that if you fly down there to get it be prepared to walk away and fly home if necessary.

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Oh he can drive. He can drive beyond the limits of the tires, the engine, the car or anything else.
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post #16 of 17 (permalink) Old 04-13-2011, 05:36 PM
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Another question specifically about lease transfer: does anyone know the tax implications? Would I have to pay taxes on transfer? Technically they should be already paid, but... Plus, what happens when the lease is out of state?
I am not sure about IL, but when an out of state leased vehicle was plated in CA, tax was due on the lease amount. I don't believe IL will pass up an opportunity to collect coin for doing nothing.

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post #17 of 17 (permalink) Old 04-13-2011, 05:53 PM
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Quote:
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Some of the richest people in the world say "Never *buy* a depreciating asset".
If it floats, flies or fucks....

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