Question About Leases
 

Any car salesman can school me on leases?

When one does a lease take over, what exactly happens?

Second, if I want to buyout some one's lease, what happens? Do I pay the owner of the lease, or do I pay the dealership?

EDIT: One more thing, can I do a trade in on a lease takeover/buyout? Would the dealership accept it and take some taxes off?

when an acquaintance of mine had their lease end, i bought it out and paid the dealership directly. I had to pay an administration fee and tax on top of what was owed for the buyout.

I work at Honda Finance so here's how we do Lease Assumptions.

Assumptions cannot be done with less than 6 months remaining. The current account must be up to date and not past due.

The person assuming the loan must qualify, meaning you have to submit for a credit check.

If you qualify, you will pay a fee for transfer, and you'll be responsible for the remaining term of the lease.


I think anyone can "buy out" the lease, paying out the residual on the lease in one lump sum. But, 3rd party individuals not on the original lease cannot apply to refinance the residual through the financing company.


Trade in equity on an assumption? No don't think so. That would be like saying 2 years into your 4 year lease you want to trade in a car to lower your payments... So no.

Ok I understand I can't trade in a car to lower the lease payments, but if I want to buyout the lease and residual and own the car, can I use a trade in for part of the buyout?

Thank you.

Hehe. No you cannot.

Depending on the manufacturer, you can assume a lease that is shorter than 6 months.

Ok that messes things up a little bit.

Are you sure you really want to lease a used car with new car payments?

It depends whether he wants to buy it out at the end or not. Also, its very possible that the original leasee paid down-payment making the current payments represent the current market.

IMO, what the most important thing is to calculate the current buyout price (or payments left + residual value) then compare that with the used market.

Or if you just want to drive a specific car and/or for a short time then I think a lease take over is worth it as well.

So apparently the dealership WILL take trades for lease buyouts, but the price they offered was too low and the buyout is too high. The manager said that when some one does a lease buyout, they don't make anything out of it, its just all admin stuff. When they take my trade in, they have to make sure they don't lose any money.

The guy really wants to get out of the lease and I thought I can cash in on a car below market, but it doesn't seem like he wants to give that much.