Taking over a leased car. Possible?
Discussion
I've been looking at getting a new car. I friend of a friend has a suitable car and they are 6 months into a 3 year lease, and have just lost their job, and to looking to get rid of the car (and payments.)
It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
eldar said:
I've been looking at getting a new car. I friend of a friend has a suitable car and they are 6 months into a 3 year lease, and have just lost their job, and to looking to get rid of the car (and payments.)
It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
Spooky idea: call the lease company and ask.It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
eldar said:
I've been looking at getting a new car. I friend of a friend has a suitable car and they are 6 months into a 3 year lease, and have just lost their job, and to looking to get rid of the car (and payments.)
It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
Speak to the leasing company, if allow it will credit check you etc and then done.It would suit us both to transfer the car and the outstanding lease to me. Any reason why this can't be done, or is a bad idea?
There are websites such as swapalease. Saw a classidied ad somewhere yesterday where a guy is currently trying to do this with a golf diesal- will even pay your insurance as part of the deal!!
Most leases have clauses preventing sub leasing. In addition the original owner would be liable for missed payments and end condition etc.I guess it depends in the type of friend. I normally see these companies as the money grabbing faceless business that hide behind the small print and I belive there's nothing they would like more than taking the car back and pursuing the lease holder thru the corts to recoup the losses . But this is only my twisted view
In certain circumstances this can be done, I've done it for customers many times but unless you know exactly what you are doing you'll struggle.
Various criteria have to be met and the lease normally has to be transferred to a like-for-like entity (eg Ltd Co. to Ltd Co.).
If your friend leased the car through a broker who knows his or her onions you've got more of a chance than if it was leased via a dealership as the sales staff usually have little understanding of the product they have sold and lose interest once the car leaves the showroom.
I'd avoid subleasing the car as there could be a potential insurance nightmare if the car is in an accident.
If you need any clarity PM me and I'll try and help out.
Various criteria have to be met and the lease normally has to be transferred to a like-for-like entity (eg Ltd Co. to Ltd Co.).
If your friend leased the car through a broker who knows his or her onions you've got more of a chance than if it was leased via a dealership as the sales staff usually have little understanding of the product they have sold and lose interest once the car leaves the showroom.
I'd avoid subleasing the car as there could be a potential insurance nightmare if the car is in an accident.
If you need any clarity PM me and I'll try and help out.
I looked into this a while ago as a way of trying a newish car without a long term commitment and someone on here posted a couple links to lease "re-selling" sites. There were a few on there that caught my eye, I was all fired up about a MINI with 8 months left on it, but the horror stories I hear about lease companies charging for every little nick when you return the car put me off the idea.
Fair wear and tear in my eyes and in the eyes of the person selling the car is one thing and what we may agree is acceptable may not be acceptable when I returned the car.
Nothing would gall me more than being charged for a mark or whatever that was already on the car when I took it over.
Fair wear and tear in my eyes and in the eyes of the person selling the car is one thing and what we may agree is acceptable may not be acceptable when I returned the car.
Nothing would gall me more than being charged for a mark or whatever that was already on the car when I took it over.
redtwin said:
I looked into this a while ago as a way of trying a newish car without a long term commitment and someone on here posted a couple links to lease "re-selling" sites. There were a few on there that caught my eye, I was all fired up about a MINI with 8 months left on it, but the horror stories I hear about lease companies charging for every little nick when you return the car put me off the idea.
Fair wear and tear in my eyes and in the eyes of the person selling the car is one thing and what we may agree is acceptable may not be acceptable when I returned the car.
Nothing would gall me more than being charged for a mark or whatever that was already on the car when I took it over.
Fair point - a decent broker will explain this.Fair wear and tear in my eyes and in the eyes of the person selling the car is one thing and what we may agree is acceptable may not be acceptable when I returned the car.
Nothing would gall me more than being charged for a mark or whatever that was already on the car when I took it over.
mattviatura said:
In certain circumstances this can be done, I've done it for customers many times but unless you know exactly what you are doing you'll struggle.
Various criteria have to be met and the lease normally has to be transferred to a like-for-like entity (eg Ltd Co. to Ltd Co.).
If your friend leased the car through a broker who knows his or her onions you've got more of a chance than if it was leased via a dealership as the sales staff usually have little understanding of the product they have sold and lose interest once the car leaves the showroom.
I'd avoid subleasing the car as there could be a potential insurance nightmare if the car is in an accident.
If you need any clarity PM me and I'll try and help out.
Thanks for that. The car is on a 3 year lease, with 2 and a half to run. The idea would be to take over, rather than sub-lease. I want to do it properly. I don't have all the details yet, so I'm not planning to make any moves until I have all the details.Various criteria have to be met and the lease normally has to be transferred to a like-for-like entity (eg Ltd Co. to Ltd Co.).
If your friend leased the car through a broker who knows his or her onions you've got more of a chance than if it was leased via a dealership as the sales staff usually have little understanding of the product they have sold and lose interest once the car leaves the showroom.
I'd avoid subleasing the car as there could be a potential insurance nightmare if the car is in an accident.
If you need any clarity PM me and I'll try and help out.
The car is With MB finance. They have said you can only transfer the lease in the event of bankruptcy or death.
Seems a little illogical, forcing the car to stay with someone who will probably have problems paying, rather than someone who can.
Do they make more money reclaiming the car?
Seems a little illogical, forcing the car to stay with someone who will probably have problems paying, rather than someone who can.
Do they make more money reclaiming the car?
eldar said:
Do they make more money reclaiming the car?
Depends if car sale recovers all costs/the debtor will eventually pay up or if he is willing to go bancrupt. Normally will repossess/auction the car and chase the debtor if the amount raised has a shortfall + fees and fines and penalties.
I'd thought that sounds the less profitable option. frosted said:
I guess it depends in the type of friend. I normally see these companies as the money grabbing faceless business that hide behind the small print and I belive there's nothing they would like more than taking the car back and pursuing the lease holder thru the corts to recoup the losses . But this is only my twisted view
Just read this.I used to work for one of these companies (high level rather than frontline)- a 'near prime' one so did sub prime and just under prime.
sub prime = higher risk to investors (large banks) = promising them higher returns = targets (what new penalties can we add + offer customer more money then requested so tempted to get a better car + try to sell them a new car asap +....). You have to bear in mind they are FSA regulated so have to toe the line- end of the day the punters should be driving cheap cars but 'want now'.
Also issues of punters doing runners with the car within UK & abroad with the car etc so tracking them down
Ceo had a lovely car and was the 'nice as pie unless you screwed up and then watch out! type.
On the plus side- Company do's were a plenty and a lot of money spent in a lot of nice bars and restraunts
As you can imagine the boom years were ridiculously busy- staff doubled in the short time I was there and needed new offices.Edited by amir_j on Monday 19th April 19:04
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