A lease transfer works by allowing one driver to transfer their lease to another, who must qualify for credit approval with the finance company. A lease transfer is a simple process in which the name on a lease account is changed for the duration of the term. Other than the registered driver and the name on the lease, the remainder of the lease contract is unchanged. This includes mileage restrictions, wear-and-tear restrictions and the total length of the lease in months. In order to initiate a lease transfer, the driver who wishes to transfer their lease must contact their finance company to make sure that a lease transfer is possible.
In order to transfer a lease, the consumer looking to assume the lease must complete a credit application with the leasing company. If a consumer does not qualify for credit approval, the car lease assumption may not be completed. When credit approval is granted, certain forms must be completed to take over a lease. These forms vary by finance company. In addition, the consumer assuming the lease may be required to pay a lease transfer fee; however, transfer fees are not uniform between finance companies, and they change regularly. The consumer assuming the lease will also be required to visit the Department of Motor Vehicles in order to transfer the registration into their name. Depending on the state, the old license plate may go with the original lessee, requiring the new driver to get a new license plate. In other states, license plates remain with the leased vehicle and not with the driver.
Steps to Lease Transfer
The basic lease assumption process is the same for all leasing companies.
- First, the individual wishing to assume the lease submits a credit application to the leasing company.
- Next, the leasing company will make a decision on the credit worthiness of the applicant.
- If approved, the lease transfer documents are prepared and sent to the buyer and seller to be signed and returned to the leasing company.
- Once the buyer and seller have signed the lease transfer paperwork, the seller will turn the keys over to the buyer and send the transfer paperwork to the leasing company.
- Within a week or so the leasing company will send both the buyer and seller confirmation letters and will begin sending the monthly lease statements to the new buyer.
Here at Signature Auto Group we have helped hundreds of please looking to get out of their lease quickly and easily. Contact us and we will help in every step of the way making the process hassle free.