Take over car lease

[ericschand]

I am in the market for a used car. I've bought many many used
cars before, but never one with a lease attached.

I have noticed there are some "take over my lease!" ads out there.

What is involved. How does this work? The one ad says $520/month
payments. What else will I need to pay to get this car? What should
I watch out for? Are there scams associated with "take over my lease!"
purchases?

Also, what if I don't want the lease? Perhaps I just want the car
outright, can I work with the lien owner to make just one big payment
and keep the car?

ers

[Bertuzzied]

Someone on CP here showed me leasebusters a couple years back. Got a TSX off of there. Only take over someone's lease if they put a fairly large down payment on the vehicle. Otherwise there is no point and you might as well get your own lease on a new vehicle. Usually if the person put $0 down they will give you a cash incentive to take over their lease.

You still have to go to the lease company and reapply. There is usually a $200 charge to transfer a lease too.

[albertGQ]

Originally Posted by Bertuzzied

Someone on CP here showed me leasebusters a couple years back. Got a TSX off of there. Only take over someone's lease if they put a fairly large down payment on the vehicle. Otherwise there is no point and you might as well get your own lease on a new vehicle. Usually if the person put $0 down they will give you a cash incentive to take over their lease.

You still have to go to the lease company and reapply. There is usually a $200 charge to transfer a lease too.

Nice car

I like

[soulchoice]

The best deals right now for Leasebusters is out in Ontario. That is where I would go to get one. A few friends of mine have taken over leases the last few weeks from out East. Better deals on cars out there, car pricing can be overpriced in calgary.

Many people out east are offering cash incentives to take over the lease.

[ken0042]

Yeah, you would have to either be taking over a lease with a big down payment, or a cash incentive. Unlike an assumable mortgage you still have to qualify with the lease company, so no incentive there.

Just take a look at what you are taking over, find out what that used car costs now and what financing it to purchase would cost. Because so many people get long term leases it doesn't work out.

An example:
- Car sells for $30K new.
- Guy gets a 5 years lease @ $350 per month
- After 18 months he wants out of the lease.

So let's say that car is now worth $20K. Person who got the lease got $10K out of the car by spending only $6300. Whereas if he had taken an 18 month lease out he would have had to pay closer to $600 per month. You would be esentially buying a used car, but paying the new price for it.

Now, if the guy is offerring $4000 to take over the lease, that's a whole other story.

Also look into leasing used cars. I know when I was last car shopping ~4 years ago they had this. Once again, leasing is just like buying the car with a guaranteed trade in value; and only paying the difference between the purchase price and that trade in value up front.