When you really need a newer car but want a better deal, consider a Lease Takeover! Lease Takeovers can be a great way to save on your next car lease, but they can also cost you more if you don't pay attention to the terms. Here you can learn about lease takeovers, their pros and cons, and how you can tackle the question of whether this really is a money-saver.
A car lease takeover involves a lease transfer; from the lease “seller” to you, the “lease” buyer. The lease seller wants to get out their lease early. This person is looking for someone to take over the lease contract along with the car. The lease buyer, you, would inherit the pre-existing conditions of the lease (and of course the car). Depending on the leasing contract, the current condition of the car, the terms of the lease, and the terms the lease-seller is offering, a lease takeover may provide you with the cheapest car option.
Drive into the world of lease takeovers by familiarizing yourself with these common key components of leasing:
When considering a lease takeover, it’s important to review the lease terms, as there may be extra expenses may be incurred by the previous leasee:
Car Lease Kilometre Limits
Typical Lease Agreements in Canada allow for 25,000 Kilometres per year. The lease will have a predetermined amount of annual kilometre usage that has financial fees attached if the lease you’re taking over has kilometre overages you would be responsible for any incurred costs.
A great lease takeover deal is a car that has used less than their annual allotment. Make sure that the mileage left available is more than enough for you (unless you know in advance, that you intend to keep - and pay for - that car, beyond its lease term).
Normal Wear and Tear vs. Excess Wear and Tear
Check the lease contract carefully for any guidelines that may exist. You may be on the hook if the current condition of the car may be worse than what is considered normal wear and tear. Normal wear and tear items are typically easy to fix, such as small scratches. Excess Wear and Tear items are typically larger and harder to repair. Here are some general guidelines on wear and tear within lease takeover contracts.
Hidden Car Lease Fees
Always check the contract for fees, as there may be a 'Turn-In' fees, and Car 'Lease Transfer' Fees. In some instances, lease companies might even charge you for outstanding violations such as unpaid tolls or tickets.
Although you probably have a better idea of the history of the car than with a random resale, it is very highly recommended that you obtain a car history for evidence of accidents (and repairs not done, or not done correctly). A mechanical inspection is also a good idea, just as with a private resale.
If you intend to keep the car at the end of the lease, remember to count on potential repairs in the future, that would be at your cost, if you keep the car.
Swapalease.com and leasebusters.com are two companies who specialize in helping lease-sellers get out of their lease. Although they charge a fee to either be a seller or buyer, the available car listings display the numbers you’ll need to crunch, or even offer some calculation tools to help you see the value of the deals you’re looking at.
Ready to lease a car? Let Canada Drives help you find the best deal on leasing. Canada Drives is 100% free for car shoppers, and the online application is quick and easy.
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