For buyers, assuming someone’s car lease can be a superb deal. Of course, with this comes its cautionary flags, but if you have worked your numbers right and are convinced to take over a lease, you’ll be ecstatic to know that assuming someone’s car lease has numerous benefits. For instance:
• Short-Term Commitment
The major reason for people to take over a lease is they are not willing to engage in a long-term agreement. A new car lease typically lasts from 24 to 48 months before the lessee decides to take the plunge. In contrast, a short-term lease lasts from one year to two years. After that, you have the option to return the vehicle, buy it outright or take over another one.
• Reduced Monthly Payments
Since sellers want to get rid of their lease early, they often proffer potential buyers a cash incentive to assume the lease. A cash incentive can be one, two and even three months of lease installment. Not only this incentive benefit the individual taking over the lease when applied against the ongoing monthly lease payments, but also allow the buyer to aid the seller who is in a financial crunch and wants to exit the lease early. Sure, it’s an upfront cost to the seller, but it’s far better than paying out the next 18, 24 or more monthly installments. Your repayments could be even lower if the original lessee has made a down payment at the time of signing the lease.
• Easy Availability of Your Favorite Car Model
One of the primary reasons for people to take over a lease is the better availability of specific car models. While a high percentage of buyers keep a vehicle for three to five years, most leases generally do not stretch beyond two to four years. Resultantly, you may not find a two-year-old car on a used-car lot, but you might find more variety if you are interested in taking over a lease.
• Owing a Car Doesn’t Make Much Sense
Taking over a lease is a perfect solution for those who don’t want to own a vehicle. For instance, a person who has a temporary assignment for 14 months to two years may not like to buy a car. This makes lease swapping a good compromise. The idea will also appeal to those who realize that majority of cars are a depreciating value asset, so why invest in a 20, 30 or 40 thousand dollar vehicle that will lose its value as soon as you will drive it off the lot. This makes short-term lease an ideal solution for such folks since it is no different than renting a home. For some, it’s a necessity and a cost of living. For others, it’s nothing but a protecting layer to go under.
