Car Lease Takeover
What is a Car Lease Takeover?
A car lease takeover is what it sounds like: You take over paying a car lease from someone else. In exchange, you get use of the car for that amount of time. There are plenty of good things that come from such a deal, like lower payments and less commitment. But fees, taxes and unwelcome surprises can come with it, too, so be aware of those. Let’s take a closer look into car lease takeovers to see if they’re the right fit for you.
Why Should You Do a Car Lease Takeover?
Someone you know might not be able to afford their car payments anymore. Or perhaps they’ve had a new baby and need to trade up for a bigger car. Taking on their lease could help both you and them out. And there are pros for you beyond that.
Maybe you only need this pickup for the college semester to carry furniture. Or perhaps you don’t know whether or not you’d like that new sports car. This gives you the perfect opportunity to try it out short-term. If you like it, you can buy it or take out a longer lease once the initial one is up.
More Affordable Options
New car leases tend to come with large down payments, but that’s not a problem with a lease takeover. Lease payments can be lower than flat-out buying a car. This is especially true if the former lessee traded in a car or paid a down payment. Do remember to shop around, though, just in case there are even better options.
You never know what kind of good things you’ll get with a new car. The new car warranty might still be active. The lease might cover some essential repairs and services. Some lease sellers even offer cash incentives! Read your lease agreement carefully, and see what kinds of perks and incentives you have. It might pleasantly surprise you!
What Are the Cons of a Car Lease Takeover?
A car lease takeover isn’t the correct answer to every scenario and can lead to some problems. There are also ways to prevent these issues.
Potentially Limited Mileage
Every lease has mileage limits, and the original lessee could have driven the car pretty far. If you didn’t know this and drove the car a lot, you could incur some hefty mileage fees. Preventing this is easy. Check both the lease and the odometer, and plan your driving carefully. However, if you plan to drive more than the lease allows, ask about the overage charges. They might be cheaper than you think.
Paying for the Lease As-Is
Above, we said that paying for an as-is lease could be a good, affordable thing. But on the other hand, it might not be so affordable. Perhaps the original lessee didn’t know how to negotiate very well. Or maybe they were late on their payments. When you take over the lease, you inherit these problems. They might put you on the hook for a higher monthly payment. An easy way to prevent this is to shop around. Make sure the lease is the lowest-priced one for your preferred car.
Wear & Tear Could Be Troublesome
Whenever you get a car that used to belong to someone else, there’s always some amount of wear and tear. But if you take over a lease, the repair and maintenance fall on you too. For instance, a recent accident might have some repair costs. The best way to get around this is to get a vehicle history report. It might also be prudent to get a service record from the previous lessee. And, of course, keep the car in top working order if you decide not to extend the lease.
What Steps Do I Need to Take for a Car Lease Takeover?
Going into a car lease takeover can be somewhat tricky. Follow these steps, so it’ll go as smoothly as possible.
If you want to see the car easily, pick one that’s close to you. The best distance is around 30 to 60 miles from you. But if you want to get it from even closer, that wouldn’t hurt.
Check the Details
Read over the terms of the lease. Check your state’s takeover laws and taxes. Ask for the financial company’s contract. This will help you make an informed decision.
Compare other car lease takeovers before settling on one. Consider the vehicle, the takeover costs, and any additional criteria you might need to think about.
Check Out the Lease Contract
Review the contract in detail, paying close attention to mileage remaining and repairs covered. Get it inspected and put the title in your name. From there, the car’s yours!
Do I Need a Credit Check for a Car Lease Takeover?
In a word, yes. You do need a credit check for a car lease takeover. If your credit isn’t perfect, this might scare you a bit. Especially since credit inquiries can tank your score further. That’s where we come in. We’re 007 Credit Agent. Get in touch with us, and we can help you fix your credit score. We can remove hard inquiries, dispute fraudulent activities, and more. You can get your credit consulting done through the best company in the area. We’re the credit agents who can help you get the car or home of your dreams.