How a Lease Swap Works

A lease swap for your car is when you transfer or trade your existing car lease to another person. It allows you to exchange your leased vehicle for a different one before your term is up.

To do a lease swap, you need to find someone who is willing to take over your remaining lease payments and assume your lease contract. This person will go through an application process with the dealer or leasing company, similar to when you first leased the car. If approved, you sign paperwork to assign your lease to the new person. They would take possession of the car and continue making the monthly payments. You would then be free from the lease obligations.

If you're looking to end your current car lease early without facing a large termination fee, a lease swap could be a great choice. Just remember that finding the right person to take over your lease requires some effort, but it's a helpful way to switch vehicles before your lease term ends.

When you want to get out of your car lease early, there are two similar but distinct options – a lease swap or a lease takeover. 

With a lease takeover, someone assumes your lease contract and takes over your specific leased vehicle. They begin making the payments on the same car you leased.

A lease swap involves exchanging your leased vehicle for a different one. You find someone to take over your lease, but you don't keep the same car. The new person takes your vehicle, while you can lease something else.

This article focuses specifically on how to swap an auto lease and exchange your current leased car for a different vehicle. If you simply want someone to take over payments on your existing lease, a lease takeover may be the better option to explore.

The key steps of finding another person and transferring the lease contract remain the same. But a lease swap allows you more flexibility to lease a totally new vehicle.

Here are seven steps on how to swap a car lease:

1. Review your lease agreement 

Before attempting to swap your lease, thoroughly review your lease agreement to see if there are any restrictions or fees for transferring the lease. Make sure you understand any early termination penalties.

2. Determine the buyout amount

Calculate the remaining payments plus any purchase option or buyout amount at the end of your lease term. This helps set expectations for the new lessee.

3. Find an interested person

Post online or ask friends if they're interested in taking over your lease. Emphasize your car’s features and the number of affordable payments left. 

4. Have the new lessee apply 

Once you find someone, they'll need to formally apply and get approved by the dealer or leasing company, just as you did.

5. Complete the lease swap paperwork

If approved, complete the contract assignment forms to transfer the lease to the new lessee’s name. There may be processing fees involved.

6. Exchange vehicles

Meet to hand over keys and take possession of your new leased car. Don't forget to clean out your old one.

7. Notify your insurance 

Inform your insurance provider that you no longer own the swapped vehicle. Adjust policies as needed.

With some preparation and paperwork, you can successfully swap your auto lease.

It is possible to negotiate when swapping a car lease. There are a few things that you can try:

• Negotiate the buyout amount: Check if the leasing company is willing to lower the buyout price for the new lessee. This makes the lease more attractive to take over.
• Ask about transfer fees: The leasing company may charge a fee for transferring a lease to a new person. Try negotiating this fee down or removing it.
• See if incentives can carry over: If there were any incentives like upfront cash or low monthly payments, ask if those can apply to the new lessee.
• Request a lease extension: You can try negotiating a 1-2 month extension if needed to find the right person to take over the lease.
• Inquire about wear-and-tear: If there is minor damage on the vehicle, negotiate how much you or the new lessee would need to pay for repairs.
• Leverage competition: Mention better offers from other leasing companies to see if they'll waive fees or improve the buyout amount.

The leasing company wants the new lease customer, so they may be open to negotiating. Make your request politely, have backup options, and highlight why it's a win-win for all parties. With preparation and research, you can potentially negotiate favorable lease swap terms.

A lease takeover is when someone else takes over the payments and obligations for your existing auto lease. The key steps involved are:

1. You find an interested person to take over your lease: This may be through word-of-mouth or advertising on lease trade sites. 
2. The new lessee applies and gets approved for the takeover: Similar to how you originally applied, they will need to qualify with a credit check.
3. Paperwork is signed transferring the lease: You and the new lessee meet at the dealership to sign forms assigning them as the new leaseholder.
4. The new lessee takes over payments: They begin making the monthly payments on the same car you leased.
5. You are released from the lease: After a successful takeover, you are free from the lease obligations.

A takeover allows someone to assume your exact lease on the same vehicle. You don't swap into a different car like with a lease transfer. The new person essentially steps into your shoes, taking your place in the lease contract. 

The cost to swap a car lease can vary, but here are some typical fees and expenses to expect:

• Transfer fee: Most leasing companies charge a fee to process and transfer the lease, usually $200-$400.
• Lease-acquisition fee: Covers the leasing company’s administrative expenses.This fee can range anywhere between $395-$895. 
• Sales tax: In some states, sales tax may need to be paid on the new leased car. This varies by location.
• Registration fees: You may need to pay registration and title fees for the new swapped vehicle.
• Inspection costs: Either party may opt to pay for an inspection of the vehicle's condition.
• Remaining lease payments: The new lessee takes over your remaining monthly payments.
• Buyout amount: Any buyout or purchase option amount at lease end would be assumed by the new lessee. 
• Mileage overage: If you went over the mileage limit, you may owe fees at swap time.

In total, expect to budget $500 - $1000 in typical swap fees, along with the remaining lease payments being assumed. The exact cost will depend on your specific lease terms and location. Inspecting the car thoroughly and negotiating can help minimize swap costs.

Here are some other things to know about swapping a car lease:

Check for lease swap restrictions

Read your lease carefully to see if there are restrictions on swapping or transferring. Some have limits or require leasing company approval.

Consider taxes owed 

Depending on local laws, you may owe taxes on the original leased car when you swap if sales tax was deferred. The new lessee may owe tax on the new lease as well.

Negotiate wear and tear costs

Inspect the car and determine if excess wear and tear needs to be repaired. Negotiate with the dealer who should cover these repair costs.

Notify your insurance company

Let your insurance provider know you are swapping vehicles. The new lessee will need their own policy on the car.

Return plates and registrations 

Remember to remove license plates, registration paperwork, toll transponders, parking permits, etc from the swapped car.

Vehicle Condition

Before transferring your lease, ensure the vehicle is in good condition. Any damage or excessive wear and tear could lead to fees at the end of the lease term, which the new lessee would have to pay.

Time frame

Transferring a lease can take some time, often 2 - 4 weeks, as it involves paperwork and credit checks by the leasing company. Plan accordingly to avoid any inconvenience.

Keeping these tips in mind will help ensure a smooth lease swap process and prevent any surprises down the road.

Swapping your car lease may seem like a good option, but it can come with hassles and fees. Before going through the swap process, consider if alternative solutions like these might better fit your needs:

• Ridesharing: Services like Uber or Lyft allow you to simply hail a ride when needed versus committing to lease payments. It’s more flexible and cost-effective if you don't drive frequently.
• Car rentals: For occasional driving needs, renting a car as-needed may provide more freedom than being tied to a lease swap. Compare rates at several rental companies.
• Car subscriptions: Newer services, like a c from FINN offers short-term subscriptions to drive certain vehicles. You can switch cars periodically without long-term commitments that are required in traditional leasing.
• Going car-free: If you live in an urban area, assess if public transportation could fully replace the need for a personal vehicle. 

While a lease swap provides one option, truly look at your driving habits and needs. Weigh the benefits of alternative options that let you switch vehicles or forego car ownership completely. More flexibility may better suit your situation than swapping leases.