Car lease takeovers — are they worth it?
Taking on someone else’s burden can sometimes be a win-win
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A lease takeover brings plenty of advantages beyond the thrill of scoring a new ride.
It can be a lot cheaper than financing a car or starting a new lease. Commitment-phobes will appreciate the shorter contract.
And sellers can be motivated because they want out early without pricey termination fees. They may offer buyers extras like free winter tires or a cash bonus so they can let go of their 36-month car lease at the 12-month mark.
But before locking down a price that meets your budget, read the terms. You may find extra fees and conditions that can turn a perceived deal into a total bust.
When you perform a lease takeover, you’re getting the car plus all the conditions that came with the original lease. You don’t get to renegotiate the monthly payment or anything else, and your credit score will have to be good enough that the lease company will accept you.
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How a lease takeover can save you money
- You won’t need a down payment or security deposit, since the seller would have already paid that when they started the lease. However, if the car is in excellent condition, the seller may ask you for money to try and recoup their losses.
- The monthly cost of a lease is usually lower than buying and financing the same car.
- A takeover keeps you on the hook for less time than a regular lease, making it ideal for car junkies who want to try a new ride every few years; or for someone who wants a lengthy test drive before making a commitment.
- If the MV is higher than the RV, buying it from the lease will be cheaper than buying the same car from a friend. Need extra cash? You can also sell the car and keep the potential difference.
- Motivated sellers will offer cash incentives and other bonuses. Some lease-swapping sites list incentives as high as $10,000.
