How does swapping a lease work

This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. But how do you turn in your leased car without losing a small fortune?

Because of the pandemic and the sagging economy, many people are asking this same question. The good news is that the once-rigid leasing process has become a bit more flexible thanks to new online information and resources. Before you decide which option to use, review your lease contract and collect this information:. How many months are remaining in the lease. The amount of additional lease-end fees. The residual value — the cost to buy your vehicle at the end of the lease.

The total of lease-end fees and remaining monthly payments is a good estimate of what you would have to pay to terminate your lease early and walk away from your leased car. Better yet, call your leasing company to ask about both the cost of an early lease termination and the price of buying out the lease altogether. You could simply turn in the car and write a check. Or, you could figure out what your car is worth on the open market. Compare your buyout price to the current market value of your car on an online pricing guide such as TrueCar, Edmunds or Kelley Blue Book, or by getting a real cash offer from online car dealers like Carvana, Shift or Vroom, or your local CarMax.

This is the fastest and easiest way to step out of a lease agreement. And, because the pandemic has created a shortage of used cars, your car might be worth more than you expect.

This will save her a ton of commuting time and a healthy wad of cash on petrol. So, is the Fiat lease doomed to sit in the driveway collecting dust? Just doing a spot of research so you're fully prepared for before taking out a lease. Allow Lease Fetcher help you compare car lease deals - make sure you get the most affordable personal lease or business lease deal available!

You likely already know how car leasing works , so if you leave out the final stage of handing the car back to the broker, the car lease transfer comes into play. When you transfer your car lease contract, the terms will be the same for the new lessee - the remaining cost to lease the car , the contract expiry date, and annual mileage will all remain consistent.

What happens at the end of the lease will be the exact same. The only thing that changes is that the new lessee will take over the contract. The new lessee assumes full responsibility for the lease car and contract terms until the end of the lease rolls around. There are a few requirements you must meet if you want to go for a car lease transfer.

To begin with, your broker may not allow it, in which case you should check out our post about ending a car lease early.

Your broker will also charge you an admin fee to carry out the paperwork involved in the transfer. Before you agree to anything, you should make sure that you definitely will not be held responsible for anything related to the car after the transfer has been completed. If you are, it might not be a financially sensible idea as you have no way of knowing what extra costs might be incurred by the new lessee.

As well as asking around yourself, there are a few websites you can use to connect you to potentially new leases. They have a wide membership base of people searching for short commitment, low cost, no deposit leasing deals. This is only done through the leasing company that owns the particular vehicle. The terms and conditions of the lease transfer, as well as any applicable fees, are determined solely by the leasing company and are non-negotiable.

That said, there are differences between LeaseTrader and SwapALease, which make one or the other more useful for your specific situation. Both offer three comparable pricing models, which provide enhanced listing options and different levels of exposure.

All fees paid to LeaseTrader are nonrefundable, regardless of whether your lease transfer is successful or not. Both platforms let you browse vehicles for free, but buyers must pay to register and contact leaseholders. A free credit report is performed as part of the package. Unlike LeaseTrader, this is not a monthly subscription fee.

This is a one-time registration fee. Neither platform guarantees the lease transfer will be successful and all charges are nonrefundable. The main body of the homepage offers a photo gallery of the vehicle, a detailed description, and a features list. LeaseTrader edges ahead with its modern and minimalist design. The listings feature a lot more details and information is readable, well-formatted, and easy to find.

Webtools indicate SwapALease. The success of your listing is determined by the details of your lease. Most negative reviews claim clients are unable to find a suitable transfer, while at the same time have been charged nonrefundable fees. LeaseTrader and SwapALease are very evenly matched in price and features. Both platforms promise to take the hassle out of lease swapping, though neither offers any guarantee of success.

We covered all basic information about lease swaps—how they work, what to look out for, and the pros and cons of the most popular lease trading platforms. Follow Below Invoice for more leasing power tips and automotive content. Skip to content Below Invoice. See all results. LeaseTrader vs. SwapaLease Lease Transfer Guide. Table of Contents. Share on facebook. Share on google. Share on twitter. Share on linkedin.