A lease swap basically involves ‘swapping’ your current lease with a buyer by transferring it over them. In other words the buyer will take over the vehicle, and the remainder of your lease.
From that alone you may already be starting to see the appeal of lease swaps and the benefits that they can provide. However if you still aren’t sure, it may help to know some of the reasons you may want to consider one.
Avoid Termination Fees
If you were to terminate a lease early you would normally have to pay a fee that can be quite hefty. It typically is a percentage of the total that is remaining – which can add up to quite a bit.
However if you swap the lease you can avoid that fee, and will end up paying much less. At most you may have to cover some of the fees associated with the lease transfer to make it more appealing to buyers.
It should be noted that some lease contracts may have a ‘lock-in’ period during which the lease cannot be transferred, such as the first year or two.
Switch to a Different Vehicle
By swapping your lease and ending it early, you’ll free yourself from the financial commitment and will be able to take on a different lease or buy a car more easily. That is particularly important if your needs have changed and your current lease is no longer appropriate.
For example in some cases and you want to switch from a sedan to a SUV or minivan to make it easier to transport your family.
Of course if you really just want to try out a new model, or have found a good deal that you want to take advantage of – there’s no harm in that either. Regardless of your motive the lease swap will let you switch to a different vehicle and minimize the cost in the process.
Save Money in the Long Term
Although leasing will let you save money in some ways in the short term, in the long term it does not. Buying a vehicle will let you save more money in the long term, especially if you continue to drive it after you’ve paid it off.
Suffice to say if you want to look at the long term, have the finances, and are willing to undertake the commitment of owning a car in the long term – you could swap your existing lease and buy a vehicle instead.
The point to consider is whether or not you are planning to keep the vehicle for a long period of time or not. If you are, this is a solid reason to swap your lease – but if you aren’t then you should not pursue it.
Although there are other ways to get out of a lease early aside from lease swaps, they can be more complicated. One of the other options that is often used is to buy the vehicle from the leasing company and then sell it, which is why you can find many former lease cars for sale.
However as you can imagine that may not always be an option, and even if it is you will need the finances to back it up and will have to go through a fairly complicated process.
All in all lease swaps are definitely one of the easiest ways to get out of a lease. Now that you know the reasons why you may want to consider it, you should be able to quickly decide whether or not it is the right option in your case.