Hi all, I’ve been looking at lease swap options recently as I am at the tail end of my own lease. I spoke with someone that did a lease swap from out of state, and I’m wondering how risky that situation is. I am located in CA, and am interested in a bmw in NY. Is it a wildly stupid idea to swap a car so far away and have it transported over here, if the deal is good enough? Thanks for the advice in advance.
Bump. I guess the main worry is not being able to inspect the car in person.
The lease swap sites offer inspection service. Use them to get it inspected before the transfer.
By the time you add costs in for a 3rd party inspection, as well as transportation (or gas/lodging if driving), it’s gotta be a helluva deal to make it worth the time and aggravation. You’ll also have to add in the costs for registration and inspection.
Once BMW approves the transfer, it’s technically yours. You better make sure you have insurance on day 1 also, as you won’t be there to take ownership. If the guy decides to drive it while technically yours and slams into a tree, it’s your problem.
Registering cars in CA from out of state is a PITA IIRC
Depends on how many miles they have on them. It’s pretty easy as long as they have more than 7500 (I think that’s the threshold).
You should be able to find some lease transfer in California I would think … I feel like the majority I see on here is California based. Depending how much time you’ve got, I would personally wait until something in CA or a surrounding state to pop up.
Better be a smoking deal to transfer cross country sight unseen. Also, be aware of tax implications since that could kill a deal as they can vary greatly based on both states involved. You are likely paying CA on top of the existing payment, which probably has NY taxes rolled in, so taxed on taxes.
I just turned in a transferred lease a week ago…
- 2017 Toyota Tundra Platinum
- MO - CT
- 16 months remained
- 1k miles/month
- $460/month
- US Bank - $150 app fee
- US Bank - $500 transfer fee
- 1st month payment - $460 (due at signing transfer agreement)
- Vehic. Inspection - $200
- Vehic. Transport - $1000
- $395 disposition fee
From my experience, I wouldn’t do it again unless the vehicle was nearby, and not with US Bank.
I have been disputing with US Bank for the last 4 months since they are deeming me responsible for paying the previous lessee’s property tax; despite the transfer paperwork stating that the previous lessee had no unpaid taxes at the time of the transfer for 2018. I took over the lease in August 2018. MO determines property taxes on Jan 1, and they are due at the end of December, of the same year.
So, it can be costly and risky depending on the institution’s attention to detail and lack of responsibility for errors on paperwork. Furthermore, they can conveniently try to use, “Well, you signed to take over all obligations in regards to the vehicle.”
Also, about 4 months before lease end, have any wear and tear issues taken care of prior to turn-in to avoid expensive wear and tear fees.
If you decide to do it, do so wisely.
I would submit a complaint to the CFPB regarding the previous lessee’s property tax issue. That got US Banks attention quickly for me and was refunded over $500 that I shouldn’t have been responsible for. I would never do a lease transfer with US Bank again.