Discover How Take Over Car Lease (Either New or Used Autos) May Really Help You

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Short Overview of Take Over Car Lease 

A car lease takeover, aka a lease assumption or a lease swap, allows you to assume the remainder of another individual’s auto lease.

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Here, the original motor vehicle lease contract is transferred to a new lessee (the person taking over a long term or short term lease), who takes over use of the vehicle and its related monthly payments.

The new lessee is bound by all the vital responsibilities of the auto lease contract, including mileage limits, maintenance and monthly payment terms.

Is a lease takeover a good idea?

There are a couple reasons why one would want to take over someone car lease and the related monthly pay.

Is A Lease Takeover A Good Idea?

Yes, as long as you take necessary precautions. A lease takeover is a great arrangement for both the person transferring the lease and the person taking it over.

Do you need good credit to take over a car lease?

This is because the original lessee gets the lease payment off their hands and the other person gets the needed wheels without a long-term financial commitment.

If you’re planning to take over a lease, ensure that the car was cared for.

It’ll be in your best interest to take time to understand the potential fees or taxes you’ll need to pay at the time of the lease takeover or upon its end.

Is it smart to lease a car then buy it?

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Does lease transfer affect credit?

You can get out of a car lease without affecting your credit. This is because lease transfer is the easiest way to rid yourself of a lease you can’t afford.

The worst thing to do is to stop making the payments as it would lower your credit score which can make it difficult for you to get a new car lease in the future.

Simply post your lease to a lease-swapping website, share the details and you’ll be contacted by anyone interested. It’s that simple.

Can a car lease be transferred to another person?

Are lease takeovers legal?

Yes, they are. You’re simply helping your landlord find another tenant.

However, to have the force of law, a lease takeover requires not just finding a qualified tenant, but also getting the approval and cooperation of your landlord.

Do check your lease contract to make sure it’s allowed and approach your landlord for a conversation about your options. 

Do you need good credit for lease takeover?

You still need to qualify for the lease in terms of credit score, income and DTI with a lease takeover.

If your credit score is lower than the original lessee’s, the leasing company may not approve the transfer.

Why take over someone else’s car lease?

  • Car lease transfer cost a bit less

Leasing a vehicle is a lot cheaper than purchasing it, given that you’ll pay a fraction of the entire cost mostly by per month basis.

Assuming another individual’s lease is even cheaper since the care has already been considerably paid for by the original lessee.

  • Variety

Truly car lease transfer or lease takeovers provides you with more car options to make your pick from.

Assuming that you are in search of a car that’s maybe one or two years old, this might be challenging to get if you are looking at used cars dealerships.

However, given that most car lease terms only span for about years, you could find a recent ride with little mileage on it.

  • Incentives

Often, individuals looking for people to assume their auto lease are not only in desperate need of getting rid of the motor vehicle, but also out of the car lease contract.

This urgency – often financially related – makes them include different incentives like cash payment to lure potential lessees.

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  • Flexibility

Maybe you are just in need of a car to use until you purchase your dream car.

Or perhaps you simply want to give a luxury car such as Mercedes Benz, BMW or Toyota Lexus, a thorough test drive before deciding whether or not to purchase it.

That said, you can’t obtain an 18-month car lease with a bank or leasing company.

However, through taking over another individual’s lease, you could easily get the right car to match your desired time length.

How to Take Over a Car Lease

Taking over someone else’s lease is a pretty simple thing to do and it involves only a little bit of paper work and easy to get per month payment agreements!

The first step is to get the original lessee to contact their leasing company or dealer and inform them of their intention of having their lease transferred to you.

The dealer or leasing company will then proceed to contact you and have copies of the lease agreement sent to both you and the original lessee to sign the document.

Before any of this takes place, you need to thoroughly conduct your due diligence. There’s no point of ruining the deal once the lease transfer is completed.

Make sure that you contact the leasing company or dealer to verify certain details such as the mileage that’s left and the condition of the vehicle that you are intending to lease.

Different from a normal car lease that spans for about five years and needs down payment, you could obtain a lease takeover that lasts for two years and at times even twelve months.

Also, no down payment is involved, which means that you get to save a lot of cash.

The leasing company or dealer, however, has to first approve the lease transfer and this is precisely where your credit score comes in.

Once the lease transfer is approved, the deal is as good as complete.

A few leasing companies, however, still hold the first lessee responsible for all the payments due even with the lease having been already transferred to another individual.

And even though this might be good news for the lease’s buyer, it is certainly not as good news for the lease’s seller.

Also, some lease companies such as Swapalease don’t allow the lease transfers to take place either at the very start of the leasing period or towards the end of the lease term.

You need to confirm these small details before asking for the transfer of the car lease into your name, and this applies to even short term lease.

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What to Consider before a Lease Takeover

Before you take over a lease plus its monthly payments, you need to consider a few vital factors that might increase the cost. They include:

  • Mileage

Most leases often come with a mileage restriction, which is simply the maximum figure of miles that the vehicle can be driven within the lease duration.

The lease contract specifies a certain fee for every mile that is driven over the set limit, which has to be paid in addition to the monthly payment.

Before you take over a lease owned by someone, check its mileage limit as well as the present mileage on the car to determine if you are likely to surpass the limit during the remainder of the lease term.

If you are concerned that might exceed the limit, you could negotiate with the original leaseholder.

Most lease owners are normally willing to offer some cash incentive to assist in covering the cost if the motor vehicle already has relatively high mileage.

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  • Condition of the car

Another important lease requirement to look out for is that by the end of the lease duration, the returned leased car should be in a reasonable condition.

Once the vehicle is returned, the leasing company or dealer carefully assess it for any damages and charges the individual responsible.

Therefore, before you take over a lease, ensure that you thoroughly check the car’s condition and the agreement’s definition of the phrase “reasonable condition”.

This might include, for instance, no scratches beyond a certain size.

And given that some of these things could be difficult to spot, it is thus advisable to have a trusted mechanic to assess the car to ensure that it is in proper mechanical and structural condition.

This is more important when considering higher price cars that come with prestige such as Jaguar, Audi and Mercedes Benz.

Remember, when you take over a lease, you will be responsible for the monthly payments and you will be bound to all the terms and conditions in the lease agreement. Therefore, be very careful.

Most long term and short term lease also mandate that the cars be properly maintained as well as serviced regularly. Not doing so might invalidate the car’s warranty.

Before taking over lease, you should request for proof that the necessary services have been done, particularly if the lease swap is due to financial reasons.

Imagine a Mercedes Benz or any other vehicle model that has not been properly maintained. The Mercedes Benz auto lease together with its requirements could be passed to you.

Cars are also at times involved in accidents and then get patched up a bit before having the lease transferred onto an unsuspecting buyer.

It is, therefore, wise to buy an independent report from websites like or, which disclose whether or not the vehicle has ever been involved in any serious accident.

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What else to Consider before a Lease Takeover

On top of the obvious expenditures like the monthly billings and fueling the vehicle, there are other additional costs that you ought to take into consideration before taking over lease.

There are various states that tax lease swaps similar to the way the tax sales. You thus need to confirm with your state if this is the case.

Another important expense is insurance. Finance companies require that leased cars have, at the very least, collision and comprehensive coverage. In addition, most states need you to have a personal liability coverage.

Pros and cons of Car Lease Transfer

A lease takeover could help you get a short term use motor vehicle without having to lock yourself into a two or four year lease contract.

Lease takeovers involves assuming someone else’s car lease contract before its expiry.

The Pros

  • Short term agreement:

Lease terms normally last for about four years. This means that a lease transfer will even be shorter, thus giving you the opportunity to drive a car without necessarily making a huge commitment.

  • Good deals:

Most of those individuals looking to transfer their leases are often in an urgent need to free themselves from the contract, mainly for financial reasons.

Therefore, they often offer incentives like covering the costs of the transfer or even paying several monthly billings before the official lease transfer.

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  • Cheaper than purchasing a new vehicle:

A vehicle lease take over is a good way to take advantage of prestige lease which empowers you to drive a luxury  vehicle, e.g. a Mercedes Benz or Toyota Lexus, exotic 4×4 SUV Range Rover Velar.

Also, a take over lease will generally attract less monthly payments than a new vehicle lease.

  • Lower mileage compared to purchasing a used car:

Given that leases often come with mileage limitations, you’ll typically get a ride with fewer miles compared to what you would get if you purchased a used version of that same vehicle.

However, these short term car leases have their own risks.

The Cons

  • Low mileage transfers are hard to find:

Leased cars often come with somewhat tight mileage limits. This might make it challenging to find a swap a lease deal involving a car that has many thousands of miles left.

  • Sales tax:

These costs could be quite hefty. However, note that different states have different laws that determine how the sales tax gets calculated.

  • Limited saving in comparison to getting a new lease:

You’ll almost take on similar costs as you typically would when getting a new lease. The only difference is the duration of the lease.

  • Unexpected surprises:

Without conducting an in-depth assessment of the car to detect any damages or potential issues before taking over the lease, you will be left on the hook for all damages which will definitely increase per month investments.

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Popular Questions about Lease Take Over

Do you need good credit to take over a car lease?

Yes. The typical minimum for most dealerships is 620. A score between 620 and 629 is near ideal and a score between 680 and 729 is considered ideal by most automotive dealerships. If you don’t have good credit, a lease could be expensive.

Is assuming a car lease a good idea?

Assuming a car lease is a great option for you if you don’t want to buy a car.

For instance, if you have a temporary assignment for 18 months, then you may not want to buy a car. Thus, assuming a car lease can be a good compromise.

Can you assume someone’s car lease?

Yes, you can.  If you’ll be doing this, you’ll be responsible for the rest of the payments on the car.

A very easy way to do this is to identify someone who is looking to get out of their current lease.

What does it mean to assume a lease?

It’s a situation where you assume an in-process lease from another person.

Here, you can take over an existing lease with no money down, and with a shorter lease term than you would normally have to take on if you were to write a whole new lease.

For instance, if your neighbor had 18 months left on his car lease, and you want to take over his lease, you would simply assume his lease and start making the payments each month for the remaining 18 months.

How do you assume someone’s lease?

You’ll have your credit checked and be ready to negotiate with the lessee. The leasing company wants to make sure you can fulfil the terms of the lease so they will contact you with an application to fill out.

Complete the application and send it back quickly. Once your lease is approved, you will then sign the contract for the remaining term of the lease and take possession.

What is a lease assumption?

A lease assumption is a process where a new party takes over a lease contract. It allows one person to assume an in-process lease from another person.

A lease assumption agreement is a legal contract signed by the two parties effecting an agreement.

Can you take over someone’s car lease?

Yes. It’ll help you solve a temporary car need without locking yourself into a typical two to four-year lease or buying a new car as you are only responsible for the remainder of the lease.

Can someone take over my car lease?

Yes. You can do a lease transfer to transfer an auto lease to another credit-worthy individual.

This saves you the penalties and fees that generally come with an early car lease termination.

Whoever buys your lease agrees to make the remaining monthly payments.

Is it a good idea to buy out your car lease?

If you can acquire the automobile for less than its current market value and you like the car, buying it from the leasing company makes financial sense.

But even if it looks like you’d be overpaying slightly at first glance, buying the car can be a good idea.

Is it bad to lease a car and then buy it?

Generally, it’s not a good idea to lease a car if you’re not to buy it at the end of the lease. If you’re going to finance the end-of-lease buyout, this is also not a good idea.

It’ll be much better off if you purchased the car from the beginning as you own it after the loan is paid off.

Are lease takeovers worth it?

A lease takeover brings a lot of advantages. Sellers are usually more motivated because they want out early without price termination fees.

You won’t need a down payment or security deposit since the seller paid when they started the lease and the monthly cost of a lease is usually lower than buying and financing a new car.

Can car lease be transferred?

If you are close to the end of your lease, or there are only a few payments left on the lease, your lessor may not allow you to transfer the lease. Whether you can transfer the lease depends on the funder.

Not all funders will allow you to do this. But if your funder will allow you to transfer your car lease then the person, or the company, who is going to take over your lease contract will have to be approved by the funder. 

Can a car lease be transferred to another person?

Yes. When you lease a car, you don’t officially own the title to that vehicle; thus, the only way to sell the car and get rid of the ownership is to transfer it to another person.

If you can find someone else to take over the lease via an official document transfer, you’ll no longer be obligated to pay for the vehicle or remain in control of the car.

How does transferring a car lease work? 

You need to contact the leasing agency or company and inquire as to whether or not they allow transferals of their auto leases.

Then find someone who will take on the obligations associated with your car lease, and then have the new leaseholder complete a credit application.

Once that has been done and it’s been reviewed, you will both have to complete a short transferral form to complete the process.

Does swapping a lease hurt your credit?

You can get out of a car lease without affecting your credit. A lease transfer is the easiest way to rid yourself of a lease you can’t afford.

The worst thing to do is to stop making the payments as it would lower your credit score which can make it difficult for you to get a new car lease in the future.

Simply post your lease to a lease-swapping website, share the details and you’ll be contacted by anyone interested.

Is swap a lease good?

It can be beneficial to everyone involved. The person getting rid of the lease can move on and the person assuming the lease can meet a temporary vehicle need, potentially at a lower overall cost than a long-term lease or a car purchase.

How does car lease swap work?

A car lease swap is a transaction in which a vehicle subjected to an auto lease is transferred from the current driver to a different driver.

The first step should be to confirm from your finance company that it is possible, then, ask if the company charges any fees for lease transfers.

Once you have confirmed the lease can be swapped, it’s your responsibility to find someone to take it over. Once you find someone, and you are happy with the arrangements, you can complete the paperwork to formally transfer the lease.

Can you swap a lease for another lease?

You might be able to roll your current lease into another one at the dealership. You’ll still need to pay early exit fees, but they’ll be included in the monthly payments of your new car contract.

Can I trade my leased car early for another car?

At the dealership, the used car department will evaluate your leased car and assign a trade-in value.

If the trade value is greater than the lease payoff account, you have positive equity that can be applied to the purchase or lease of a new car. Any dealership will apply these values in the same manner.

Is it smart to take over a car lease?

Taking over a car lease could be a smart or a poor decision. It all depends on the terms of your deal and how suitable the car is for your needs. Takeover leases are usually non-negotiable and with additional fees.

However, you could also get to pay smaller payments if the original owner paid bulk sums in their initial payments. It is also smart to test-drive the car, before taking it up.

Can you take over someone’s car lease?

Yes. It’ll help you solve a temporary car need without locking yourself into a typical two to four-year lease or buying a new car as you are only responsible for the remainder of the lease.

Is it smart to lease a car then buy it?

No, it’s not a smart idea to lease a car if your intention is to buy it upon the termination of the lease. Most especially if you’re going to finance the end-of-lease buyout.

A better option is to purchase the car from the beginning. Purchasing it outrightly means you own it once you complete paying the loan. 


Taking over a lease could be a great and beneficial arrangement for both parties involved; the original lessee and the new lessee.

However, if you are looking to take over another individual’s lease, ensure that you do your homework for signing any monthly payment.

Ensure that the motor vehicle you want to lease was well cared for. Also, take time to understand all the costs that will be involved.