Lease Trade ?
08-07-2007, 07:20 PM
#1
Race Director
Thread Starter
Lease Trade ?
Has anyone dealt with or understand how lease trader works? My wife was looking around it and there seems to be some good deals were you can get into a nice auto for a year and turn in the lease when it's up instead of being stuck in a multi year lease.
08-07-2007, 08:56 PM
#2
Burning Brakes
mdrums ...
Before I got my 997, I toyed with a 'lease swapper/trader' deal. Some of the cars are pretty pristine, low miles and well cared for.
From what I have seen, the deal is this: someone gets a high toned car (P-car, Merc, Audi, yada, yada) ... gets it for nuttin' down and 36-60 month lease. Then after a year or so, the party puts the car on a 'lease trader' forum. Yes, they continue to pay for the car and drive the car.
It's like a 'sales forum', but what you are doing is selling your lease. Sometimes the buyer pays a 'fee' like $250 - 500 to the lending company for the doc transfer, the seller pays a $50 - 150 fee to list the car on the web site.
Altho, you sorta state that one could lease a car for year and then walk away, it's not all that EZ. I tried it with a really nice 2 year old C5 Vette. Only had one hard look and others wanting me to give THEM money incentives to get out of the lease. I rolled it into an M3 instead. But, some folks will give an "incentive" to the prospective buyer of the lease ... to sorta sweeten the pot STP.
I also saw a red C4S (could be just an C2?) that was VERY nice with many great photogs on the lease swap web site for MANY months and it may have not sold. Things are what they are. If the car had not been a RED car, I may have done the deal. It was pretty sweet, too.
IMO, the person in the driver's seat is the prospective buyer of the lease. They know the term of the lease (usually shortish), the car's condition (usually great), number of miles per month one can drive, and can negotiate with the seller to get the car at a less expensive price.
Before I got my 997, I toyed with a 'lease swapper/trader' deal. Some of the cars are pretty pristine, low miles and well cared for.
From what I have seen, the deal is this: someone gets a high toned car (P-car, Merc, Audi, yada, yada) ... gets it for nuttin' down and 36-60 month lease. Then after a year or so, the party puts the car on a 'lease trader' forum. Yes, they continue to pay for the car and drive the car.
It's like a 'sales forum', but what you are doing is selling your lease. Sometimes the buyer pays a 'fee' like $250 - 500 to the lending company for the doc transfer, the seller pays a $50 - 150 fee to list the car on the web site.
Altho, you sorta state that one could lease a car for year and then walk away, it's not all that EZ. I tried it with a really nice 2 year old C5 Vette. Only had one hard look and others wanting me to give THEM money incentives to get out of the lease. I rolled it into an M3 instead. But, some folks will give an "incentive" to the prospective buyer of the lease ... to sorta sweeten the pot STP.
I also saw a red C4S (could be just an C2?) that was VERY nice with many great photogs on the lease swap web site for MANY months and it may have not sold. Things are what they are. If the car had not been a RED car, I may have done the deal. It was pretty sweet, too.
IMO, the person in the driver's seat is the prospective buyer of the lease. They know the term of the lease (usually shortish), the car's condition (usually great), number of miles per month one can drive, and can negotiate with the seller to get the car at a less expensive price.
08-08-2007, 07:49 PM
#3
Rarely you find a great deal out there, but you better be fast. Most of them are folks who roll many previous purchases into their current lease and actually expect some sucker to come along and bail them out! There are some astonishingly sad cases on there, but if you're persistent you can find some nice ones.
08-08-2007, 09:33 PM
#4
Instructor
Baggerdude is correct. It's my carmon red 06C2S on swapalease. They charge 125 bucks to list. You qualify and take over the lease a year or so into someone elses deal. You win on this and any incentives they give you to take the car. You still can buy at their residual value. Taxes are a state issue. The lease people handle the transaction. If you wan a used car, they have some outstanding deals. You will save about 5 grand on most deals from the dealer cost. Good luck.
08-09-2007, 06:09 PM
#5
Rennlist Member
I used Swap a Lease on my 7 series BMW. The previous owner simply wanted out and had already purchased a new car. He paid me a sum up front to take over payments and I worked directly with BMW. The process was very smooth and allowed me to drive a 745 for 8 months with a full warranty, full maintenance and a relatively low payment.
Like everything else there are good deals and bad deals.
Like everything else there are good deals and bad deals.
08-09-2007, 07:21 PM
#6
Rennlist Member
One thing to keep in mind is that usually the original lessee is still responsible for the lease.
Years ago, I took over a lease on a one year old vette. I just assumed the guys payment thru GMAC. GMAC did not release the previous owner, he was still responsible for the rest of the term if I defaulted.
Sellers should be extermely careful about letting someone assume their lease. You can ruin your credit, and be responsible to pay the balance of the lease and you don't even have possession of the car.
Years ago, I took over a lease on a one year old vette. I just assumed the guys payment thru GMAC. GMAC did not release the previous owner, he was still responsible for the rest of the term if I defaulted.
Sellers should be extermely careful about letting someone assume their lease. You can ruin your credit, and be responsible to pay the balance of the lease and you don't even have possession of the car.
08-09-2007, 08:25 PM
#7
Burning Brakes
Originally Posted by RaceCarDriver
One thing to keep in mind is that usually the original lessee is still responsible for the lease.
Years ago, I took over a lease on a one year old vette. I just assumed the guys payment thru GMAC. GMAC did not release the previous owner, he was still responsible for the rest of the term if I defaulted.
Sellers should be extermely careful about letting someone assume their lease. You can ruin your credit, and be responsible to pay the balance of the lease and you don't even have possession of the car.
Years ago, I took over a lease on a one year old vette. I just assumed the guys payment thru GMAC. GMAC did not release the previous owner, he was still responsible for the rest of the term if I defaulted.
Sellers should be extermely careful about letting someone assume their lease. You can ruin your credit, and be responsible to pay the balance of the lease and you don't even have possession of the car.
I spent some time with Capital One and BMW Financial to see WHO would be responsible once I gave up my cars. In each of these two cases, the NEW lessee was totally responsible for the car. I would be "off the hook", STS.
Otherwise, no one would try to 'off' their lease if they were still responsible.
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08-10-2007, 02:57 AM
#8
Racer
Originally Posted by Baggerdude
I don't think this is true anymore.
I spent some time with Capital One and BMW Financial to see WHO would be responsible once I gave up my cars. In each of these two cases, the NEW lessee was totally responsible for the car. I would be "off the hook", STS.
Otherwise, no one would try to 'off' their lease if they were still responsible.
I spent some time with Capital One and BMW Financial to see WHO would be responsible once I gave up my cars. In each of these two cases, the NEW lessee was totally responsible for the car. I would be "off the hook", STS.
Otherwise, no one would try to 'off' their lease if they were still responsible.
+1
This is what my research indicates. Was the practice several years back but not any more.
08-10-2007, 01:44 PM
#9
Rennlist Member
Originally Posted by 4thporsche
+1
This is what my research indicates. Was the practice several years back but not any more.
This is what my research indicates. Was the practice several years back but not any more.
When I did mine the lease was transferred to my name from BMW. Every company is different but I cannot imagine releasing a car to someone while still being under my name. Better be good friends!!
