Lease Takeovers - Should you opt for Lease Transfer or Purchase the Lease

If you have decided to acquire a new car or vehicle, you must have analyzed the different options available, which includes purchasing the car or vehicle outright, buying the car or vehicle with a bank loan, or even leasing the car or vehicle. If you have decided to opt for leasing the car or vehicle, Lease Takeovers and Lease Transfers are also a good option. You can also purchase the lease package outright if you do not want the hassle of monthly lease payments.

If you have decided to opt for leasing a car or vehicle, you can also look at the option of purchasing the lease package outright, instead of just a Lease Takeover and Lease Transfer. This choice is up to you and depends on your financial situation and other factors. The best way to choose whether to opt for a Lease Takeover or purchase the vehicle lease from the leasing company is to analyze your requirements and financial situation. You can then decide whether you would like to continue with the monthly installments of the lease, or pay the balance in one lump sum purchase, get the Lease Transfer to your name, and be rid of the hassles of paying monthly installments of the Lease Takeover.

Whether you opt for a Lease Takeover and continue the monthly installments or purchase the lease package outright, you should of course do some calculations and try to get the best deal from either of the options. If you opt for Lease Takeovers and Lease Transfers with continuing monthly installments, you should try and haggle with the lessee trying to get out of the lease and the leasing company for a better deal. But vehicle and car lease packages can be paid out before the expiry date of the lease term in one lump sum.

You must first find out how much it will cost you to buy out an existing vehicle lease. You can and should call the lessee of the vehicle/car and request that person to call the vehicle leasing company for the pre-tax buy out of the vehicle lease. After you receive this information, you must start negotiations with the vehicle lessee. There are however a few important points to remember:

A. In a Lease Takeover purchase, you will be purchasing the vehicle/car from the original selling dealership - not the lessee or the leasing company.

B. The leasing transaction will be subject to all applicable taxes.

C. An administrative fee on the Lease Takeover purchase is always added by the original selling dealership to the final selling price.

D. If the final lease purchase buy out amount exceeds the negotiated selling price, you must ask the lessee to provide for the difference between the two amounts. For example, if the lease buy out is $40,000.00 and the selling price of the car is $37,000.00 - the lessee should provide you with a cheque for $3,000.00 plus all applicable taxes.

E. If you deal with the lessee directly, then it is important and necessary that the lessee coordinates with the original selling dealerships representatives for their assistance in closing the deal.

Whether you choose to opt for a Lease Takeover and Lease Transfer with monthly installments or purchase the Lease outright, you should always negotiate with the lessee, the car dealership, and the leasing company to get the best deal. Try to negotiate the best price from the lessee (as he is trying to get out of the lease), the car dealership (they will lose money if they lessee cannot pay and they reclaim the vehicle), and the leasing company (you are a new customer and every company tries to entice a new customer).