Last week’s finance feature introduced a non-traditional, potentially extra-affordable way to purchase a car, by going directly to a public auction. This time, we’re covering another innovative way to get behind the wheel of a late model vehicle or expensive ride at a lower cost than usual.
It’s by assuming an existing lease from someone who wants out of their deal. Due to financial concerns, physical relocations or changes in family size, it isn’t uncommon to find individuals who are either no longer able or no longer interested in their present car lease.
Online companies, such as Swapalease and LeaseTrader, specialize in pairing lease buyers and sellers. The person exiting the lease benefits by avoiding termination penalties, or abandoning the lease outright and suffering damage to their credit record. The person who assumes the lease doesn’t make the customary down payment and can often take advantage of cash incentives offered by the seller who is eager to get out of the lease.
This concept is also a win for leasing companies. They are generally happy to endorse these deals with little more than a transaction fee, because it minimizes the prospect of a leaser walking out of the remainder of their contract.