Is it easier to get approved by the bank when taking over someone’s lease ?
No, it is not.
Can you renegotiate the mileage allowance in a lease transfer? Obviously the payment t would be different
You can negotiate any cash incentive that the original leasee would give to you to cover reduced mileage or address a high payment.
In the end, It doesn’t matter what their payment is, rather what is a reasonable per month payment for it. Sometimes people don’t get that as they are stuck on what they paid or how much they put down but may have got a terrible deal/lease.
It goes without saying you should always be under the 1% rule unless their is a ton of extra miles or something.
I am in process of short lease takeover.
The benefits for me I considered:
- short obligation without DAS
- try out a BMW and qualify for a Loyalty incentive if I decide to get a new one in the future
- this lease comes with a $5000 lease protection insurance, so I am comfortable with the garage door scratch
A disadvantage, beside points mentioned above, is that BMW does not allow service work transfer. There is a beautiful BMW 640 in the Marketplace section here, but the transferee willbe responsible for 3 years of service costs.
I asked my seller to get the last service prematurely if possible so I don’t have additional expense until the lease end.
Then there is possibility I may need new set of tires (?) Current Miles 24,500, Remaining Miles 11,500 (any comments how 330i eats tires ?)
Can somebody here show a contract they used in the past ?
If you are out of town where the car is located, do you insist on taking the car for inspection before handover or are you comfortable with a contract and service visit records ?
You 100% have to see the car before agreeing to take it in case there is damage you would be responsible for at lease turn in if not fully covered by the lease protection plan.
I would hesitate to take such a short term lease due to the hassle of getting it registered especially out of state. Be prepared it could be 1-3 weeks AFTER the lease has been transfer before it can be registered as they would have to send the title to your DMV. You are then responsible for the registration fees and titling so more added cost. During this time, there are no temp plates available so the car could just sit.
Also, who is paying the transfer fee? $595 is a lot when spread across just 10 payments.
And as you brought up, if the car needs tires, as it may, even getting used tires would cost you $500-$1000
Also, have you see his detailed lease and confirmed details including that there are MSDs? Do not trust anyone about the details no less if you have to give him money directly.
Your logic is flawed because under this method you are assuming whoever takes over the lease will be using every mile left on the lease.
I qualified it 3 times with ‘if the miles can be used’, and it’s common sense.
Indeed you did, but why not start off your statement by saying that?
Your statement reads like this…
The best way to figure out if a lease transfer is good is to divide this by that and that is how you know if you got a good deal on a lease transfer based on price per mile. (If you can use the miles)
Would of been cleaner like this…
If you find lease transfer that has additional miles that you plan to fully utilize the best route is to divide this by that and then you can figure out the advantages you gain vs just looking at the price per month.
I get what you were saying. I’m just saying what you said originally was a generalized statement, but then added the disclaimer at the end. Would of been better to hit the point and then explain. Obviously what I am saying is valid because your statement sparked a debate.
Best of luck to you!
• The person has to be someone you can trust. Unfortunately, when I was actively looking into assuming a lease, I encountered a lot of transfers where people had not taken care of the cars, had been in an accident, or had driven far too many miles and merely were ridding themselves of the lease because they wanted to pawn the costs for their carelessness onto someone else. They still find ways to spin it into an attractive deal, however.
• Having experience in this area I can say the most important thing is the condition of the vehicle overall and as it will relate to lease inspection turn-in. If I were interested, I would first always pull a Carfax after seeing the car and ask for service records to find if all services were completed when they were supposed to and if they matched. I saw many vehicles where the vehicle was serviced once and never again. That is a bad sign when regular maintenance is a part of leasing (i.e., maintaining the car at proper intervals of mileage).
• It is essential to check for the things you would be on the hook for at the end of the lease such as fees, scratches, dents, dings, and interior stains/tears/cracks, etc. Also, check the rims for damage as well as the tread depth. Then, I would advise you take it to a mechanic no matter how great it looks as you become financially responsible for any issues the former transferor may have created.
I successfully assumed a lease with an incredible payment, no money down, and no fees (the transferor paid them all and for the mechanical inspection as well). It turns out we lived in the same town, and he was a sincere person who had taken great care of the vehicle and provided every detail I needed. He was moving across the country and no longer needed the car. It worked out great for both of us. I believe the most critical element after financial sense is the person you are assuming the lease. As long as they are honest and forthcoming, it can be an excellent avenue for some.
Additionally, while it is unnecessary, after experiencing so many who were hiding details of the condition of vehicles, I visited my attorney and had him draw up a contract that covered me during the transfer process. It is unconventional, but it was fair and beneficial to both parties (it was not more favorable to me than it was to them). If someone would not sign it, I did not trust to move forward with the assumption.