How to Avoid Penalties and Transfer Your Car Lease
Filed Under Careers, College Admissions and Ranking, Colleges, Degrees, Education, Financial Aid, Guest Writers Speak, Job Opportunities, Popular School Locations, Scholarships, School Related Items, School Social Dynamics, Schools, Schools & Colleges, Student Loan Information, Student Loans & Financial Aid, Teacher and Student Dynamics, Teaching, Top Schools, Training |
Many people and businesses have realised the benefits that car leasing has over outright vehicle purchase. Numerous small businesses now lease their commercial vehicles on van leasing contracts enabling them to run top quality vans with fixed, known monthly repayments. Leasing provides many advantages including peace of mind over vehicle maintenance concerns as well as tax advantages.
But what if changes in finances or business mean that you simply can’t afford to maintain the monthly payments? Normally, terminating a lease agreement before the agreed time period has elapsed will incur penalties. Most leasing companies will provide a quotation of what it will cost to terminate a car lease lease before the agreed termination date.
The current economic downturn is forcing many individuals and businesses to tighten their belts and to look closely at their expenditure. One significant monthly expense that they may want to terminate is their vehicle lease payments.
One way to avoid the early termination penalties is to find someone else to take over the lease. You may be lucky and find a family member or close friend who wants to take over the lease. Alternatively there are websites that will put those who are looking for someone to take over a lease with those who are offering a vehicle lease.
One such website is leasetrader.com. This US based site charges a fixed fee of $249 which can be split between the buyer and the seller. The service is very rigorous in checking the credit rating of prospective buyers and screening all communications between buyers and sellers. Legally binding contracts are drawn up and signed by all parties.
In the UK a similar service is provided by swap-a-lease.co.uk. There is a listing fee of £39 charged to sellers.99 and then they charge a success fee equivalent to one months rental when letters of intention are exchanged.
Swap-a-lease explains that different leasing companies charge various fees for transferring vehicle leases. They provide assistance in dealing with these variations and navigating the transfer process which they estimate as taking from 14 to 28 days in total.
Companies like these, offering lease-transfer services, are a new phenomenon. With the credit crunch biting ever deeper, forcing people and businesses to re-evaluate their financial commitments and budgets, it is likely that we will see more of these services springing up in the near future.
Related posts:
- Find out about car leasing
- Loans- Tips for people with Bad Credit
- A Successful Career In Equipment Finance-Is It Right For You?
- Financial Aid: How To Get Out Of Credit Card Debt
- What To Do If You Suffer A Loss of Job and Income
- Getting The Best No Credit Check College Loans
- Private Alternative Student Loans Are Often Required In Addition To Federal Funding
