Honda Car Forum

LeaseTrade.com

If you're looking for someone to assume the lease on your vehicle, we're a
new marketplace specializing in just that. No middlemen and no buyer
registration fees. During our Beta period, you can post your vehicle ad for
FREE!

If you're looking to assume a lease on a late model car and save a lot of
money, you can browse the listings to find something to your liking.

The website can be reached at http://www.leasetrade.com

Enjoy!

And if any of you have questions about transferring a vehicle lease, I'd be
happy to answer any and all questions.

Matt

"Matt" <matt@matt.com> wrote in message
news:jtHrb.119083$ao4.366529@attbi_s51...
> LeaseTrade.com
>
> If you're looking for someone to assume the lease on your vehicle, we're a
> new marketplace specializing in just that. No middlemen and no buyer
> registration fees. During our Beta period, you can post your vehicle ad
for
> FREE!
>
> If you're looking to assume a lease on a late model car and save a lot of
> money, you can browse the listings to find something to your liking.
>
> The website can be reached at http://www.leasetrade.com
>
> Enjoy!
>
>
>
>
>

How is it possible to transfer a lease from one person to
another without first buying the vehicle from the owner
of the vehicle, holding the lease, in state where they
have actual title to the vehicle?




Matt wrote:
>
> And if any of you have questions about transferring a vehicle lease, I'd be
> happy to answer any and all questions.
>
> Matt
>
> "Matt" <matt@matt.com> wrote in message
> news:jtHrb.119083$ao4.366529@attbi_s51...
> > LeaseTrade.com
> >
> > If you're looking for someone to assume the lease on your vehicle, we're a
> > new marketplace specializing in just that. No middlemen and no buyer
> > registration fees. During our Beta period, you can post your vehicle ad
> for
> > FREE!
> >
> > If you're looking to assume a lease on a late model car and save a lot of
> > money, you can browse the listings to find something to your liking.
> >
> > The website can be reached at http://www.leasetrade.com
> >
> > Enjoy!
> >
> >
> >
> >
> >

LeaseTrade.com

Melvin,

It's called a lease assumption. Many lease companies are now allowing this
type of transaction. The way it works is that a new lessee (a buyer) goes
through a credit approval process with the vehicle lease company. Once
credit approved, the new lessee receives an identical lease contract to the
original lessee but with only the contract terms that remain. Once the
paperwork is signed, the lease obligation passes from the original lessee to
the new lessee and the vehicle is handed over to the new lessee (buyer).
The old lessee's (seller) contract is terminated and they exit the lease
early.

There are many benefits to this:
1. It allows current lessees flexibility when leasing
2. It offers liquidity and a secondary marketplace for lease vehicles.
3. Very often, the lease seller offers a cash incentive for a new lessee to
assume the vehicle. This helps to subsidize the lease payments for the
lease buyer.
4. The down payment from the original lessee usually passes to the lease
buyer upon lease assumption.
5. And the biggest benefit is that it allows lease sellers the capability to
exit their lease early without hefty termination charges, penalties, or
other fees (which often net into the thousands of dollars).

There is much more to this so please feel free to browse our "Learning
Center" at www.leasetrade.com.

M

<MelvinGibson@mailcity.com> wrote in message
news:3FAF9FD9.DB669BFA@mailcity.com...
> How is it possible to transfer a lease from one person to
> another without first buying the vehicle from the owner
> of the vehicle, holding the lease, in state where they
> have actual title to the vehicle?
>
>
>
>
> Matt wrote:
> >
> > And if any of you have questions about transferring a vehicle lease, I'd
be
> > happy to answer any and all questions.
> >
> > Matt
> >
> > "Matt" <matt@matt.com> wrote in message
> > news:jtHrb.119083$ao4.366529@attbi_s51...
> > > LeaseTrade.com
> > >
> > > If you're looking for someone to assume the lease on your vehicle,
we're a
> > > new marketplace specializing in just that. No middlemen and no buyer
> > > registration fees. During our Beta period, you can post your vehicle
ad
> > for
> > > FREE!
> > >
> > > If you're looking to assume a lease on a late model car and save a lot
of
> > > money, you can browse the listings to find something to your liking.
> > >
> > > The website can be reached at http://www.leasetrade.com
> > >
> > > Enjoy!
> > >
> > >
> > >
> > >
> > >

On Mon, 10 Nov 2003 16:26:02 GMT, "Matt" <matt@matt.com> wrote:



Never do business with a spammer!



---------------------------------------------------------------------------
Because of the current email spam attacks my email account is not included,
reply via the newsgroups or ask for a valid email address.

That may help the seller but certainly not the buyer. Why would
any buyer pay as much or even more to acquire a used closed end
leased vehicle from the owner for more than the current value of
the vehicle on a short term lease, as is in the case with most
early lease termination's, when they could simply lease a new
vehicle or buy a similar used vehicle for less and at a lower
total interest cost? There is no "down payment" on a lease to
be transferred. Any pre paid amount does not reduce the total
cost of the lease, it merely reduces the monthly lease payment.


mike hunt



Matt wrote:
>
> LeaseTrade.com
>
> Melvin,
>
> It's called a lease assumption. Many lease companies are now allowing this
> type of transaction. The way it works is that a new lessee (a buyer) goes
> through a credit approval process with the vehicle lease company. Once
> credit approved, the new lessee receives an identical lease contract to the
> original lessee but with only the contract terms that remain. Once the
> paperwork is signed, the lease obligation passes from the original lessee to
> the new lessee and the vehicle is handed over to the new lessee (buyer).
> The old lessee's (seller) contract is terminated and they exit the lease
> early.
>
> There are many benefits to this:
> 1. It allows current lessees flexibility when leasing
> 2. It offers liquidity and a secondary marketplace for lease vehicles.
> 3. Very often, the lease seller offers a cash incentive for a new lessee to
> assume the vehicle. This helps to subsidize the lease payments for the
> lease buyer.
> 4. The down payment from the original lessee usually passes to the lease
> buyer upon lease assumption.
> 5. And the biggest benefit is that it allows lease sellers the capability to
> exit their lease early without hefty termination charges, penalties, or
> other fees (which often net into the thousands of dollars).
>
> There is much more to this so please feel free to browse our "Learning
> Center" at www.leasetrade.com.
>
> M
>
> <MelvinGibson@mailcity.com> wrote in message
> news:3FAF9FD9.DB669BFA@mailcity.com...
> > How is it possible to transfer a lease from one person to
> > another without first buying the vehicle from the owner
> > of the vehicle, holding the lease, in state where they
> > have actual title to the vehicle?
> >
> >
> >
> >

Agreed.

Used to be that the residual amount at lease end could be substantially less
than the actual value of the car at the time. Lessor could purchase the car
at lease end at a good price, or use the difference between residual and
value as down payment, or cap cost reduction on a new car. Lately, with
regard to BMW anyway, residual at lease end is, from personal experience,
more than the actual value of the car, so unless it's possible to negotiate
a lower residual, only logical step is to walk away from the car. I've let
the last two five series go back to BMW, because, even though they were
ultra clean, low mile cars, I didn't find that purchase at the residual
amount, or even a lower negotiated amount on the last car, a particularly
good deal. Purchase amount would have been at or only slightly below the
RETAIL value of the car.

Only advantage I can see to an assumption is in favor of the original
lessor. He gets to bail out of a lease early.

I'd certainly never pay a dime to assume a lease, unless I were in the
market to PURCHASE a car, and the combination of remaining payments and
residual were a LOT less than the going rate on a similar free and clear
used car. An unlikely scenerio at best.

DS



<MikeHunt2@mailcity.com> wrote in message
news:3FAFE788.7147F5DE@mailcity.com...
> That may help the seller but certainly not the buyer. Why would
> any buyer pay as much or even more to acquire a used closed end
> leased vehicle from the owner for more than the current value of
> the vehicle on a short term lease, as is in the case with most
> early lease termination's, when they could simply lease a new
> vehicle or buy a similar used vehicle for less and at a lower
> total interest cost? There is no "down payment" on a lease to
> be transferred. Any pre paid amount does not reduce the total
> cost of the lease, it merely reduces the monthly lease payment.
>
>
> mike hunt
>
>
>
> Matt wrote:
> >
> > LeaseTrade.com
> >
> > Melvin,
> >
> > It's called a lease assumption. Many lease companies are now allowing
this
> > type of transaction. The way it works is that a new lessee (a buyer)
goes
> > through a credit approval process with the vehicle lease company. Once
> > credit approved, the new lessee receives an identical lease contract to
the
> > original lessee but with only the contract terms that remain. Once the
> > paperwork is signed, the lease obligation passes from the original
lessee to
> > the new lessee and the vehicle is handed over to the new lessee (buyer).
> > The old lessee's (seller) contract is terminated and they exit the lease
> > early.
> >
> > There are many benefits to this:
> > 1. It allows current lessees flexibility when leasing
> > 2. It offers liquidity and a secondary marketplace for lease vehicles.
> > 3. Very often, the lease seller offers a cash incentive for a new lessee
to
> > assume the vehicle. This helps to subsidize the lease payments for the
> > lease buyer.
> > 4. The down payment from the original lessee usually passes to the lease
> > buyer upon lease assumption.
> > 5. And the biggest benefit is that it allows lease sellers the
capability to
> > exit their lease early without hefty termination charges, penalties, or
> > other fees (which often net into the thousands of dollars).
> >
> > There is much more to this so please feel free to browse our "Learning
> > Center" at www.leasetrade.com.
> >
> > M
> >
> > <MelvinGibson@mailcity.com> wrote in message
> > news:3FAF9FD9.DB669BFA@mailcity.com...
> > > How is it possible to transfer a lease from one person to
> > > another without first buying the vehicle from the owner
> > > of the vehicle, holding the lease, in state where they
> > > have actual title to the vehicle?
> > >
> > >
> > >
> > >

On Mon, 10 Nov 2003 22:17:38 GMT, "DS" <spam_me_not@buzz_off.net>
wrote:
>I'd certainly never pay a dime to assume a lease, unless I were in the

It usually works the other way around. Someone is looking to get out
of a lease and is willing to offer a deal to make it happen. I have
seen offers of X months pre-paid, $$$ cash up front to assume the
lease, any number of other such options.
The person assuming the lease gets a nice car for a short lease term
with no money down and some free months or some cash at a monthly rate
lower or equal to what they would pay if they had to go start a new
lease from scratch.

Scott

Actually, the details of buying and selling leases really vary from car to
car. Everybody here is correct to a certain extent. Sometimes it is in the
sellers best interest, sometimes the buyer. If the negotiation is
acceptable to both parties, then it's a win-win.

For sellers, the ability to exit their lease car is a nice benefit. Life
does throw some curve balls so perhaps somebody is financially challenged
and would like to get out from under their expensive car lease (rather than
default). Other times, the seller is just looking to move to a different
car (addition to the family or wanting a different type for commute car,
etc.).

Here's a typical seller example: A lessee has a two seater car and signs a
48 month lease. One year into the lease, he finds the love of their life,
gets married and has kids. Well, the 2 seater just doesn't fit the
lifestyle anymore so they decide to sell the lease car. With a fair
residual, an acceptable seller incentive payment, and a car in excellent
condition, it would be a good deal for a buyer to assume.

For buyers, usually the assumption of the original down payment and often a
seller incentive payment (cash) make it a very worthwhile transaction. If
the lease residual is right (either equal to market value or below market
value), the buyer will come out ahead as there is some built-in equity in
the vehicle. If the lease residual is higher than the current value, the
buyer can essentially just use the car and return it to the bank at the end
without problem.

Here's a typical buyer example: A buyer wants to get into a late model BMW
M3 and wants to own it but can't quite purchase it outright quite yet. So,
s/he finds an M3 in good condition with 14 months to go, a residual that is
showing $1,000 in equity and a small cash incentive payment that covers a
single lease payment. The incentive payment covers the majority of interest
on the remaining monthly payments (as lease interest is often front-end
ammortized) and thus has become an inexpensive 0% financing while paying
down principle over the next 14 months. Perhaps the seller incentive
payment gives the deal a negative interest rate (and yes I've seen this).
At the end of the 14 months, the buyer can afford the low residual and
decides to buy the car outright.

So for both seller and buyer, their are advantages and disadvantages. Any
number of factors can make it a win-win. Market conditions are a little
weird right now but I think the recently adjusted residuals will open up all
sorts of opportunities for buyers and seller.

Matt

"Scott" <spam784@spam.spam> wrote in message
news:rla0rvs0cdmt54n97ln1v02abl8dh9pff9@4ax.com...
> On Mon, 10 Nov 2003 22:17:38 GMT, "DS" <spam_me_not@buzz_off.net>
> wrote:
> >I'd certainly never pay a dime to assume a lease, unless I were in the
>
> It usually works the other way around. Someone is looking to get out
> of a lease and is willing to offer a deal to make it happen. I have
> seen offers of X months pre-paid, $$$ cash up front to assume the
> lease, any number of other such options.
> The person assuming the lease gets a nice car for a short lease term
> with no money down and some free months or some cash at a monthly rate
> lower or equal to what they would pay if they had to go start a new
> lease from scratch.
>
> Scott
>

Matt:

Great response. But I'll add a bit of reality that can often discourge
or prevent lease transfers...

First, for "sellers" of leases, many lease companies simply don't
allow transfers. Others restrict the periods during the lease term in
which transfers can take place. Furthmore, many (most) lease companies
make the original lessee responsible for maintaining the lease if the
new lessee defaults -- not a good thing to have hanging over your head
for a couple of years if you're a "seller."

Second, for "buyers" of leases, even with incentives, the good
assumption deals are only those in which the orginal lease was a good
deal (good discount, good money factor, and good residual) -- and the
original lessee made a hefty down payment and/or made a valuable
trade-in with no negative equity.

It's a fine point, but I have to disagree with the point about an
incentive paying for remaining interest on the lease. Technically, the
way that lease payments are calculated, interest is paid at a flat
rate across the entire lease term. Each monthly payment is made up of
"principal" (depreciation), interest (money factor), and sales tax (in
most states). Each of these components is exactly the same each month
-- unlike with a car loan. However, if the lease is terminated early,
the lease company recalculates the amount still owed -- and uses an
amortized method of allocating interest and principal. The result is
that there's more of the principal still remaining than the lessee
expects. It's in the fine print of the lease contract, so it's
perfectly legal.

Cheers.

Al Hearn
www.LeaseGuide.com


"Matt" <matt@matt.com> wrote in message news:<Pm0sb.122840$9E1.610626@attbi_s52>...
> Actually, the details of buying and selling leases really vary from car to
> car. Everybody here is correct to a certain extent. Sometimes it is in the
> sellers best interest, sometimes the buyer. If the negotiation is
> acceptable to both parties, then it's a win-win.
>
> For sellers, the ability to exit their lease car is a nice benefit. Life
> does throw some curve balls so perhaps somebody is financially challenged
> and would like to get out from under their expensive car lease (rather than
> default). Other times, the seller is just looking to move to a different
> car (addition to the family or wanting a different type for commute car,
> etc.).
>
> Here's a typical seller example: A lessee has a two seater car and signs a
> 48 month lease. One year into the lease, he finds the love of their life,
> gets married and has kids. Well, the 2 seater just doesn't fit the
> lifestyle anymore so they decide to sell the lease car. With a fair
> residual, an acceptable seller incentive payment, and a car in excellent
> condition, it would be a good deal for a buyer to assume.
>
> For buyers, usually the assumption of the original down payment and often a
> seller incentive payment (cash) make it a very worthwhile transaction. If
> the lease residual is right (either equal to market value or below market
> value), the buyer will come out ahead as there is some built-in equity in
> the vehicle. If the lease residual is higher than the current value, the
> buyer can essentially just use the car and return it to the bank at the end
> without problem.
>
> Here's a typical buyer example: A buyer wants to get into a late model BMW
> M3 and wants to own it but can't quite purchase it outright quite yet. So,
> s/he finds an M3 in good condition with 14 months to go, a residual that is
> showing $1,000 in equity and a small cash incentive payment that covers a
> single lease payment. The incentive payment covers the majority of interest
> on the remaining monthly payments (as lease interest is often front-end
> ammortized) and thus has become an inexpensive 0% financing while paying
> down principle over the next 14 months. Perhaps the seller incentive
> payment gives the deal a negative interest rate (and yes I've seen this).
> At the end of the 14 months, the buyer can afford the low residual and
> decides to buy the car outright.
>
> So for both seller and buyer, their are advantages and disadvantages. Any
> number of factors can make it a win-win. Market conditions are a little
> weird right now but I think the recently adjusted residuals will open up all
> sorts of opportunities for buyers and seller.
>
> Matt
>
> "Scott" <spam784@spam.spam> wrote in message
> news:rla0rvs0cdmt54n97ln1v02abl8dh9pff9@4ax.com...
> > On Mon, 10 Nov 2003 22:17:38 GMT, "DS" <spam_me_not@buzz_off.net>
> > wrote:
> > >I'd certainly never pay a dime to assume a lease, unless I were in the
> >
> > It usually works the other way around. Someone is looking to get out
> > of a lease and is willing to offer a deal to make it happen. I have
> > seen offers of X months pre-paid, $$$ cash up front to assume the
> > lease, any number of other such options.
> > The person assuming the lease gets a nice car for a short lease term
> > with no money down and some free months or some cash at a monthly rate
> > lower or equal to what they would pay if they had to go start a new
> > lease from scratch.
> >
> > Scott
> >