Anyone with experience assuming an existing lease?

[TD]

Does anyone here have experience with swapalease or leasetrader from the acquiring side?

It seems like it *can* be a great deal if one is selective. So I'm wondering what types of beyond-the-FAQ issues one should be aware of.

[equ]

I just had someone assume my lease (Stupid me, I'm going to end up with the same car ).

We didn't go through swapalease, a lot depends on the bank. E.g, BMWFS makes things quite easy. The only catches we found were that he got charged sales tax for the full already taxed amount and that I didn't get my security deposit back that stayed with the account. Two years ago, I almost assumed a lease on a perfect boxster S, but then bought a used 911 at the last minute.

Process can take a few weeks, if you're expecting a particular model to depreciate and want a sell option from the get-go or just have trouble committing, it may be a good idea. Try to see the going market and negotiate incentives. For bmw leases there is more info at:
http://www.bimmerfest.com/forums/sho...ase+assumption

[rumatt]

Taking over a lease never made that much sense to me. Unless the price is reduced, it seems the second person is getting the short end of the stick.

If you take over half way through, you're paying the same payments for the second 1.5 years of the car's life as the person paid for the first 1.5 years. Normally, the person owning during the first years takes the bigger hit.

If I'm going to lease, I want one of the benefits that I'm paying for: a new car. Of course, there are other factors like the car is no longer available, or that person had an unbelievable lease deal that can no longer be had, etc...

[equ]

Originally Posted by rumatt

Taking over a lease never made that much sense to me. Unless the price is reduced, it seems the second person is getting the short end of the stick.

If you take over half way through, you're paying the same payments for the second 1.5 years of the car's life as the person paid for the first 1.5 years. Normally, the person owning during the first years takes the bigger hit.

If I'm going to lease, I want one of the benefits that I'm paying for: a new car. Of course, there are other factors like the car is no longer available, or that person had an unbelievable lease deal that can no longer be had, etc...

Also shorter time... When I thought of the boxster S, I wasn't sure I could live it with it for more than 12 months. The deal was $550/month for a car that was loaded up to $64k msrp. Not bad at all. Similarly when the 330ci zhp that I just got out of had a very good negotiated price, some downpayment, a MF of 0.0002 (!) and an incentive from me reducing the payments to $475/month (well plus the sales tax in NY).

It is rare/hard to get such payments on new leases - especially on short lease terms.

[JST]

Originally Posted by rumatt

Taking over a lease never made that much sense to me. Unless the price is reduced, it seems the second person is getting the short end of the stick.

If you take over half way through, you're paying the same payments for the second 1.5 years of the car's life as the person paid for the first 1.5 years. Normally, the person owning during the first years takes the bigger hit.

If I'm going to lease, I want one of the benefits that I'm paying for: a new car. Of course, there are other factors like the car is no longer available, or that person had an unbelievable lease deal that can no longer be had, etc...

The key is the shorter term. Shorter term leases generally cost more than longer term leases, since (as you suggest) the majority of the depreciation in a car happens very early. A three month lease thus only has to cope with a bit more depreciation, but has a whole additional year to spread that cost across.

So, if you pick up a three year lease halfway through, you end up with an 18 month lease at rates equivalent to a 36 month lease. Obviously, the car isn't new--but if it is low mileage and well cared for, that might not matter so much.

Another place where swapalease or similar makes sense is for cars that are no longer available, e.g. the ZHP sedan, the pre-ugly S4, or the R32.

[rumatt]

Originally Posted by JST

you end up with an 18 month lease at rates equivalent to a 36 month lease.

But so does the guy who had the car for months 1-18. Seems like he's the one really winning on this.

By paying the second half of the 36 month lease, you're allowing him to drive a new car for 18 months at the price of a 36 month lease. I'd expect to get a sweeter deal for sloppy seconds than he got for the first 18 months.

[JST]

Originally Posted by rumatt

But so does the guy who had the car for months 1-18. Seems like he's the one really winning on this.

By paying the second half of the 36 month lease, you're allowing him to drive a new car for 18 months at the price of a 36 month lease. I'd expect to get a sweeter deal for sloppy seconds than he got for the first 18 months.

What does it matter what his deal is? You're right that he's doing "better," in some sense, but as long as your deal makes sense, is that a reason to turn it down?

You could always enter a 36 mo. lease on a new car and then try and ditch it after month 18--but you are assuming a big risk by doing so.

[robg]

Originally Posted by JST

What does it matter what his deal is? You're right that he's doing "better," in some sense, but as long as your deal makes sense, is that a reason to turn it down?

You could always enter a 36 mo. lease on a new car and then try and ditch it after month 18--but you are assuming a big risk by doing so.

Right, the first guy assumed the risk of potentially having to lease the car for the full term if he can't unload it. And, everything's negotiable. So, if you make an offer for what you feel is fair for "sloppy seconds", the current lease holder might very well accept it. Also, he may have made a down payment, paid an acquisition fee and also various dealer fees-- all of whch he'll have to eat.

[rumatt]

Originally Posted by JST

You're right that he's doing "better," in some sense, but as long as your deal makes sense, is that a reason to turn it down?

Yeah, I agree. If the right deal came along and made sense, I wouldn't refuse to consider it. I'm just surprised that it isn't more common (and/or expected) to incorporate some kind of incentive for the second person. I've actually seen people ask for a FEE to take over their lease, like the original owner is doing YOU a favor.

When buying, people are more than happy to remind the seller that owning a car for the first year is expensive, and that they should (and will) pay dearly for it.

[kognito]

if it is an audi (vw) lease, there is probably a 350 dollar disposition fee at the end.

350 isn't a lot of bucks, but I would want to negotiate not being responsable for it.