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.
The basic lease assumption process is the same for all leasing companies.