11/12/2022 0 Comments Car lease takeover![]() ![]() You won’t have to pay for many of the up front fees you otherwise would have to pay at the time in which you start a lease term, and you get the benefit of used car warranty terms and other perks as well. Similarly, if you’re in the market for a new or used car and would like to lease the vehicle, taking over someone else’s lease in the middle of the lease term can provide you with an excellent bargain. The depreciation is the lessor's problem, not theirs.If you find yourself in a difficult financial situation and you can no longer make monthly payments on your car lease, you may wish to consider a lease takeover also known as car lease assumption. That's just another reason why if you do lease a car, you probably shouldn't put too much (or anything) into downpayment-if you ever have to get rid of the lease it'll probably be easier and you probably won't lose as much.Īs for the depreciation, in a lease the lessee (whether original or someone that takes over) isn't left to hold any bag at all. Those leases are less taken over I think though, because most people looking to take over don't want to fork over cash initially. For example, if they put down $6000 or something, they may ask for $4-5k to takeover, just because otherwise they're losing quite a bit. However sometimes if someone put down a large enough amount (to get a relatively low payment) they may actually ask for some of that money when they list it for takeover. Any one or combination of those can make the lease desirable for someone to take over. All these things equal something attractive to make someone take over the lease-shorter term, if there was a good deal originally, a downpayment made originally, cash incentive, security deposit sign over, paid transfer fees. That and/or signing over the original security deposit. So for getting someone to takeover a lease usually a cash incentive is offered by the current lessee. A lot of people that lease don't put anything down either. But yeah usually if the lease wasn't a good deal in the first place (like the original lessee paid MSRP or something), it's not going to be a good one to takeover. That's why shorter leases have higher monthly payments. ![]() In case of a lease, however, the cost of depreciation is spread more or less equally over the entire term. it is the steepest in the first 1-2 years, and then it slows down. I would think that depreciation on a new vehicle is sort of logarithmic function of time, i.e. Plus, as already mentioned - wear&tear, mileage, etc. Otherwise, what is the point to take over someone else's lease? To offset that, there would have to be a really really good downpayment on the original lease. Whoever takes over the remaining 24 months is left to hold the bag (absorb the depreciation that had occurred in the first 24 months). In other words, the original lessee has used a new car for couple years when depreciation is the steepest, paying a 48-month lease rate on what effectively is a 24-month lease. ![]() the interest rate must be very low and/or the orig lessee has a good down payment Booblehead wrote: ↑If I were you, I would only do a takeover if the followings are in my favor: ![]()
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