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/buy...ease-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

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