In recent years an increasing number of both individuals have decided to lease their vehiclers rather than buy them. People are opting for the simplicity, ease and low cost of leasing as in many cases the monthly lease payments are less than they would be if they had borrowed the money to buy a vehicle.
When signing a lease contract you are required to agree to a specific lease term as this determines the monthly repayments. Typical lease periods vary from around 2 to 4 years. But what if, during that period you decide that you want to change your vehicle or stop paying the lease payments? Maybe you can’t maintain the monthly payments or the model is no longer suitable for your needs.
Under these circumstances a lease swap maybe just what you need. Many businesses that lease cars and vans will have their own lease exchange programs, but there are also a number of speicialist businesses that deal with lease swaps.
In a lease swap arrangement you don’t generally swap one lease for another one. Your existing vehicle lease needs to be transferred to someone else. It is worth noting that not all vehicle lease contracts allow for lease transfer.
One way to carry out a lease swap is to sign up to one of the many websites offering this service. A person offering a lease for transfer is refered to as the seller and the person who is interested in taking up the lease is considered the buyer. Buyers can benefit significantly as they are not required to provide a lump sum down payment as this will have already been paid by the curren lease holder.
Companies that specialise in lease swapping and exchange usually charge a fee for their service. There may also be an additional charge from the leasing company for processing the lease transfer. It should also be remembered that gap insurance , essential if you are leasing a vehicle.
I recently used a lease swap web site to get a short term Fiat lease which has save me a lot of cash.