Hello fine people! I have spent a lot of time searching on the forums and reading the guides, but I am still unsure and confused. I will start with my first (and possibly most important) question, then hopefully that will set me on a path to clear up other points.
My (not yet married) partner (both late 20s) and I are looking to co-lease a vehicle. Neither of us have ever leased or owned a car before. We have both been driving for over a decade with parent-owned vehicles - no crashes, tickets, or even being pulled over. We both have strong credit-card credit scores, but no auto/house activity, and relatively “young” scores. We are both full time grad students and rent together at the same address in Nebraska. Partner is Resident/Licensed in Nebraska. I am Resident/Licensed in a different state (for now, might change in 6-12 months to Nebraska when full time student status ends). We want to register/insure/drive/house the vehicle here with us in Nebraska. We both have about the same income through our university.
Question: Is it possible to “co-lease” in this situation? What is the difference between co-signing and co-leasing? Does lease address have to match driver’s license address? And finally, if we can’t co-lease, can one of us lease/register/insure, but both of us drive it?
You can lease the vehicle and anyone can drive it, just has to be insured appropriately. One can lease and the other co-sign, never heard of co-leasing.
I didn’t see anything in my contract about who can drive. I recently leased a car under my name that I ended up giving to my dad. The only issue we had is that I couldn’t put the car under his insurance because we live in different households. I had to add him to my insurance.
We physically reside in the same household, but my driver’s license and residency does not reflect that. I wonder how that will work. Honestly, insurance seems harder than the lease agreement at this point.
It has both limitations as to who can drive the vehicle and limitations regarding assigning rights to the vehicle to. This most often comes up in cases for straw purchases of vehicles; where someone leases a vehicle in their name and gives it to a friend/family member that otherwise could not qualify.
Now, if we’re talking two people in the same household, covered by insurance where both people are using the vehicle, no problem.
Thanks so much for this clarification → We have nearly identical credit scores, debt:income ratios, income, driving history, so I don’t think it would be a case of one of us qualifying, but not the other.
I will say this… I would NEVER recommend cosigning on a lease with someone that you’re not married to. It is a HUGE recipe for disaster. This is how friendships/relationships/family ties end.
Again, the lease agreement does not say who may drive the vehicle. I can allow anyone I wish to try my leased car. If there is a person who is a regular driver of the vehicle then the insurance carrier will require that you add them as a permissive user, though it is in that persons best interest to be classified as a named insured if they dont have another auto policy.
Again, the lease agreement does say who you may assign interests to and does have general limitations regarding who is allowed to use the vehicle.
For example, one may not lease a vehicle for their buddy and then have them be the primary driver of the vehicle. Yes, this happens all the time. No, the lease contract does not allow it. (Not to mention that if it’s done because your buddy couldn’t qualify on their own you’re looking at federal felony bank fraud should someone really want to push the point).
If you want to let your buddy borrow the car and they don’t violate any of the other limitations in the lease contract, no problem.
Thanks for that recommendation. We are definitely aware of that advice. We have been considerate of that advice from others, but after consideration, we believe we are quite stable. We have been together over 5 years and are engaged. Without COVID being a thing, we’d be marrying this Spring, but had to delay due to pandemic. Current car is not likely to last much longer, so wanted to get new vehicle lined up before it dies completely.
Just have one person apply for the loan/lease with the other as a co-signer. The lease will then show up on both of your credit reports so hopefully both of your credit will benefit.
Then just make sure both of you have both names and the car added to each other’s insurance. Then both of you can drive the car with no issues whatsoever.
But I would make doubly sure you’re ok with the co-signing thing for the reasons Matt mentioned above.
I don’t see anything in my lease that says that. It states I can’t assign or sublease, and then says that I and anyone else who is using the vehicle is liable for any accident, death, etc…
Thank you so much! We are excited to move forward. We will be doing more research over the weekend and might pop in early next week with more questions. I appreciate every single person who has answered!!
It does not. Not sure why you need to fabricate a lie. Post a copy of said clause. You can certainly lease a vehicle and let your buddy drive it all day. You would be a fool, but you can. There is absolutely no federal or state law violations. All the bank cares about is that the vehicle is properly insured and you make your payments on time.
Perhaps you are confusing the term “assignment” with use.
Vehicle straw purchases are very much a thing and people very much get charged for them. Usually, however, the authorities go after dealers that push it on someone rather than someone going in and doing it themselves. You’re violating the lease in that case by assigning the vehicle to someone else and you’re running into bank fraud laws by misrepresenting the user of the vehicle in your lease application with the intent of acquiring the bank’s property.
I can see what your saying. Even though I am not signing anything between us, by me giving the car to him for primary use could be seen as an assignment.
