Risks assuming a lease?

Ask the Hackrs
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Hello Hackrs:

New to the forum, thanks for all the shared wisdom. You’ve transformed the way I look at leasing.

Due to 2020 Subaru Outback being totaled in an accident and being a 1-car family, have to get a car quickly - so many of the lessons on this forum about negotiation and patience don’t apply perfectly.

Wish I had time to wait, as the market isn’t great, to say the least, for the cars I’m looking for in SoCal (Rav4Prime, Mazda CX-5, Subaru Outback, BMW X3, X5, so looking for a short term lease (6-14 months) on Swapalease/LeaseTrader, private deals on this forum, FB Marketplace, Craigslist. Don’t really care too much about what I get, it’s only for year, want to keep it reasonable ($300-500/month).

I understand lease transfer and lease basics - disposition fees, transfer fees, lease buyouts, but as I’m short term and assuming a lease, really just after monthly payment fit. Will look to see if there’s residual value in whatever I assume, but doubt there will be much, and really just need something to drive.

Have the following list to make sure I don’t make a big mistake

  1. Make sure the car hasn’t been in a major accident and will be maintenance nightmare
  2. Make sure included maintenance is transferrable or I can pay for transfer in whatever I lease, or cost isn’t outrageous
  3. Check tires for life

What I’m worried about is the inspection - how do I assess cosmetic damage, dings, scratches, wheel dents, or even any hidden problems I may be responsible for that fall outside warranty, or come to light at lease end?

Have little confidence in the inspection services from LeaseTrader or Swapalease.

Any suggestions on inspection procedures? And anything else I’m missing?

And finally, any suggestions on do’s and don’t with Swapalease and Leasetrader? I don’t see them adding much value, but they have the traffic and leads.

Thanks for any suggestions and advice.

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Personally, I would have a pre-purchase inspection performed by an independent mechanic. It’ll probably cost you an hour or two of labor.

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If in the city/ region bring a mechanic.

If out of the region go to yelp and search for ‘Mobile Auto Inspection’ in that area and pick one who has good reviews.
Should cost less than $500

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I understand the current lease was totaled, but you won’t need a car after a year? Yes it’s a bad market, but if you are short-term transacting just to long-term transact later, it may end up costing more.

Lease swaps are not the fastest way to get into a lease. If you need something ASAP, I would look at every other route.

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Reminds me of that epic thread there the ‘seller’ refused to give the BMW to the new buyer.

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J- thanks for the advice, it’s a good point, I’m also pursuing purchase and lease options. In the past I’ve purchased cars with high resale value like Subaru, and keep for@5 years.

I need something in the next month, so have a little time. I’ve looked at the cost of assuming a lease as @$1200 - 1400, including commission for LeaseTrader and subscription ($200), transfer fee ($500), local mechanic inspection ($200) and disposition (@$500, depending what car).

If I can split with seller, it’s @$700-$800. Optimistic, yes.

I think that most cars I am looking at now are more out of whack than that amount - $800=22/mth over 36/month

There’s also the value of time, of course, and redoing in a year into an uncertain market, as well as value of driving a car I’m not crazy about for a year.

Thanks for the food for thought, will continue to look for acceptable long term deal as well.

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Makes complete sense, appreciate the idea.

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I need to see this… got a link?

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