anyone ever transfer a lease on a vehicle to another person?

[mr_dove]

My wife and I are in a tough financial situation. We were thinking of transferring the lease on her Mini Cooper and having someone take it over. The girl at Ralph Schomp mini claimed that she's never seen a lease transfer happen and she's been in the business for 25 years. She said that we couldn't do it because the contract doesn't say that we can. I tried to explain to her that contracts don't work that way but she wasn't buying it. She couldn't direct me to anywhere in the contract the prohibits the lease transfer.

I'd like to hear your experiences with transferring a lease to another person. We really can't keep paying for a car that we're not using.

[Rooskibar03]

There is a site called lease swap where you can "transfer" your lease to someone else. That said, as is the case with most things in life, there is a catch.

I do not know of any lender that will transfer the lease itself, so you are basically transferring the payments. If that person doesn't make the payment, it's on you and your credit history. If that person does make all the payments and then turns in the leased car with excess miles or damage, the bills on you if they don't pay.

Basically you are opening yourself up to a world of hurt by doing so. Only way out of a lease is to sell or trade the car. Sell it to a private individual for the payoff amount and you are off the hook. Take it to dealer and ask them if they will buy it from you you may have to come up with some cash to offset the difference but its way better then the unknown of someone not making your payments.

Trust me you don't want to miss a payment with a major auto lender.

[spqrzilla]

She said that we couldn't do it because the contract doesn't say that we can. I tried to explain to her that contracts don't work that way but she wasn't buying it. She couldn't direct me to anywhere in the contract the prohibits the lease transfer.

If the lease does not prohibit assignment, then you may be able to assign the lease to someone else. But if the leasor does not release you from the obligation, you remain liable for all the obligations. So you haven't really done anything of benefit to you.

[20X11]

And even if you do find a way to "sublet" the vehicle, you will need to maintain full coverage insurance in your name, for your protection.

[KestrelBike]

There is a site called lease swap where you can "transfer" your lease to someone else. That said, as is the case with most things in life, there is a catch.

I do not know of any lender that will transfer the lease itself, so you are basically transferring the payments. If that person doesn't make the payment, it's on you and your credit history. If that person does make all the payments and then turns in the leased car with excess miles or damage, the bills on you if they don't pay.

Basically you are opening yourself up to a world of hurt by doing so. Only way out of a lease is to sell or trade the car. Sell it to a private individual for the payoff amount and you are off the hook. Take it to dealer and ask them if they will buy it from you you may have to come up with some cash to offset the difference but its way better then the unknown of someone not making your payments.

Trust me you don't want to miss a payment with a major auto lender.

Yeah, my crappy advice is that the "buyer" get financing of their own, completely separate from the arrangement the seller has with their original/outstanding lender. Then the payoff amount is "bought" with the money the buyer acquired from their new lender. Perhaps a dealership can help with escrow with this kind of deal.

When I sold my last motorcycle, I still had some payments on it but wasn't quite upside down. I took out a loan from my credit union to pay off the loan, got the title in less than 2 weeks, then sold it and immediately took that cash and paid off my new cash loan I had with the credit union. (probably does not apply to that person's particular situation, but it's just an idea).

[ChunkyMonkey]

My wife and I are in a tough financial situation. We were thinking of transferring the lease on her Mini Cooper and having someone take it over. The girl at Ralph Schomp mini claimed that she's never seen a lease transfer happen and she's been in the business for 25 years. She said that we couldn't do it because the contract doesn't say that we can. I tried to explain to her that contracts don't work that way but she wasn't buying it. She couldn't direct me to anywhere in the contract the prohibits the lease transfer.

I'd like to hear your experiences with transferring a lease to another person. We really can't keep paying for a car that we're not using.


You might as well return the lease and take a hit on your credit rather than assign a stranger who otherwise cannot qualify to lease his/her own vehicle at the first place. Those lease swap sites are targeting bad credit folks mostly and there are way too many horror story on these. My buddy was trying to get me involved to 'repo' his lease vehicle that he reassigned to a guy through one of those sites... no thanks!

Good luck.

EDIT: Some reading...

http://autos.jdpower.com/content/buying-tip/u5xpbCz/how-to-end-your-lease-early.htm

[Busta Prima]

Ignore the saleswomen at Schomp and read the lease agreement. Most should be transferrable. I didn't get out of one but I once got IN one by taking over a lease from a co-worker who was moving to FL. The leasing company had to approve me and there was a transfer fee ($400 -ish if memory serves) and it was done. Pretty painless. And as someone pointed out there are websites for this:

www.leasetrader.com
www.swapalease.com (http://www.swapalease.com)

There might even be info about your contract question on those sites.

Good luck. I hope it works out for you.

[CO Hugh]

I echo what other people have said: it is an extremely bad idea to assign a lease

[Jer]

Do NOT do this under ANY circumstance! I attempted this years ago and I don't have the time to spell out the absolute nightmare of an unmitigated disaster it turned out to be. Just don't do it.

[codyzak]

I am surprised by the majority of answers, so far.
I transferred a lease, pre-financial crisis, and aside from a $600 transfer fee, it was painless. They paid it.
Came off my credit report, no insurance obligation, etc.
Its got to be properly explained in your paperwork.
Ralph chick doesn't make anything, so ignorance is bliss.
Good luck, cover your 6

[Busta Prima]

I believe the big warnings above are to the SUBLET concept, which I agree is a HORRIBLE idea. I don't believe they're talking about doing it properly through the leasing company on a complete transfer. There is nothing wrong with that. There is no danger and no liability. It's the same as selling the car. No credit damage either (except maybe somebody frowning upon you if you do it too soon). The only catch is the leasing company has to approve it.

[Jer]

I am surprised by the majority of answers, so far.
I transferred a lease, pre-financial crisis, and aside from a $600 transfer fee, it was painless. They paid it.
Came off my credit report, no insurance obligation, etc.
Its got to be properly explained in your paperwork.
Ralph chick doesn't make anything, so ignorance is bliss.
Good luck, cover your 6

Good for you that you got lucky. That's an exception to the rule. Mine was a 2000 Datoka 5.9 R/T that I leased brand new on a 3yr lease to give you an idea on time-frame. Bottom line is that YOU are responsible for that truck, YOU are responsible for the payment regardless of what some quick salesman will try to convince you. Better to have the vehicle in your possession and take whatever hit you have to in order to keep from turning a bad situation into a life changing nightmare.

[ChunkyMonkey]

I am surprised by the majority of answers, so far.
I transferred a lease, pre-financial crisis, and aside from a $600 transfer fee, it was painless. They paid it.
Came off my credit report, no insurance obligation, etc.
Its got to be properly explained in your paperwork.
Ralph chick doesn't make anything, so ignorance is bliss.
Good luck, cover your 6

You are lucky.. only 1 out of 5 lease terms is transferable. Most domestics and some imports are non transferable. On top of that.. most lease contract won't allow you to transfer the first or last 12 months of the term.

[Rooskibar03]

Codyzak got really lucky. I've been in the car business for 11 years and never saw a captive lender transfer a lease. Now if it was leased through a traditional bank that could be the case.

Also I forgot to mention the gal at Schomp really has no authority to help you. Your lease is between you and Mini Financial once you leave the store. Call them and get specifics and I think you'll find the only way out are the ones I mentioned before.

[mr_dove]

I spoke for a while with the guy at swapalease.com. He told me that Mini leases are handled through BMW Financial. He's worked with them in the past and they are very easy to do lease transfers with. He told me that in the case of BMW that they release the original lessee from liability so that the new lessee is responsible for the payments.

He gave me the number for BMW financial but I still need to call them.

[codyzak]

That seems like good news so far Dove.
You might have some more informed questions to present now!
My situation was a Caddy with GMAC.
BMW Financial is the only place to verify/trust answers, I bet.

[mr_dove]

I spoke with BMW financial services. They handle the Mini Cooper leases. They do offer transfers/assumptions. The new lessee has to pass a credit check but responsibility for the payments is passed entirely to the new lessee. There is a transfer fee.

So, anyone interested in a 1 year lease on a hunter green mini cooper? It has lots of miles leftover for use. I think we pay something like $230 a month IIRC.