Lease Takeovers and Lease Transfers - Legal issues
and Fine Print
Lease Takeovers and Lease Transfers are generally a
painless process if your credit rating is good and you can complete
all the required paperwork. But you should also be aware of the process
and read the fine print in the documents for hidden clauses and legalese.
All Lease Takeover companies will provide all assistance to you in
finalizing the deal for the vehicle you have selected, but you too
have to be careful and informed.
All Lease Takeovers and Lease Transfers have to be approved
and are valid and legal transfers by the Vehicle Leasing Company.
The original selling dealership will also participate in the Lease
transfers because they are the original-selling agents for the Vehicle
Leasing Company. What you must do is follow the process and procedures
for Lease Takeovers and Lease Transfers to avoid any problems that
may crop up later on or half way through the process. You must check
the vehicle that you have selected thoroughly and inspect it or get
it inspected from an experienced mechanic, test drive the vehicle,
and generally discuss the condition of the vehicle with the lessee
foregoing the lease.
If you are satisfied with the condition of the vehicle,
you can move forward and make an in-principle deal with the lessee.
You should also discuss the issues of who will be paying for the Lease
Transfer fees, vehicle inspections, any security deposits to be paid,
any cash incentives that the lessee is offering, and or down payments
required to be paid. You will have to complete the credit application
and submit it to the vehicle dealership. The vehicle dealership will
then submit the application to the vehicle Leasing Company and wait
for its credit approval and decision. You should understand that the
final credit approval for Lease Takeover and Lease Transfer rests
with the Vehicle Leasing Company. Once the Leasing company approves
the deal, the vehicle dealership and the 2 concerned parties - that
is you and the lessee - can go ahead and co-ordinate the delivery
and signing date.
There is one clause however in Lease Takeovers and Lease
Transfers that you should be aware of although this does not apply
to you immediately, but could in the future, if you want to get out
of this Lease Takeover for any reason. Some Leasing companies have
a clause that states that as a lessee opting out of a lease, your
obligation should remain on the lease even if you are opting out of
the lease and someone else is taking over. Many leasing companies
do relax this policy and release you from this clause after they have
reviewed and approved credit for the one taking over the lease, and
the credit is as good or better than your credit. Therefore you must
be careful when during Lease Transfers and enquire about this clause.
Once you have the vehicle lease transferred to your
name, you can use the vehicle for the extent of the Lease period.
But what do you do when the Lease Takeover period ends? You can extend
the lease, purchase the vehicle, or just give it back to the company.
Almost all vehicle-leasing companies allow you to drop your leased
vehicle at any associated vehicle dealership that is close to your
home or business. You should contact the vehicle leasing company at
least a month in advance and their representatives will inform you
of a dealership that is nearest and will be most convenient for you.