How To: Taking Over A Car Lease With Bad Credit (Is It Possible?)


Leasing often has some major benefits over owning. When you lease a vehicle, you don’t have to worry about the fact that the vehicle is depreciating. You also know that you can get another vehicle when you want, often trading in your vehicle each year or every few years.

Leasing cuts down on the maintenance and repairs you need to perform on your vehicle, and it also makes it so that you can change vehicles depending on your needs.

Growing families can trade their sedan for an SUV while those who have had a significant income increase can trade up for a luxury model. But that doesn’t mean that leasing is without challenges entirely. One of the major challenges when leasing has to do with credit.

Though the credit required to lease a car usually is less than buying one — because you don’t own the vehicle — you still usually need good credit. The solution can be to take over someone else’s car lease.

Related: Leasing vs Buying A Car: Pros and Cons

How To Take Over A Car Lease

Cars are generally leased for a specific time – just like renting an apartment or a home.

Because of this, there are times when an individual finds that they cannot complete their lease.

They could be moving, have lost their job, or simply not need the car anymore. In order to get out of the lease at this stage, they will often need to pay significant fees.

Again, this is very similar to renting a home. Instead of buying themselves out of the lease, many individuals decide to “sublet” their car – just like someone might sublet a home.

They give their lease over to another person who assumes the payment for the duration of the lease. The duration can be for any time, because the duration will be the remaining amount of the original lease.

So, some individuals may have leases open for six months, others may have leases open for two years. Once the car lease is taken over, it’s just as though you have leased the vehicle yourself.

You are now paying for the lease and driving the car; the previous person who was leasing has nothing to do with the process. When leasing a car, you need to take the lease directly to the dealership in question when the car is having issues. You also need to return the car at the end of the lease without any significant damage.

Ordinary wear-and-tear is usually not considered to be damage. The car does need to be well-maintained or you may pay fees. In addition to repairs, you can get charged for driving the car more than expected. Most leases are based on an estimate of how much the individual will drive.

These rates go up if you exceed the amount of mileage that was expected. Because of this, it’s incredibly important to find a lease that correlates with your average amount of driving.

The Benefits Of Taking Over A Car Lease

Rather than getting a car lease directly, taking over another individual’s car lease conveys certain benefits.

  • You may not need to go through a credit check. Because you are taking over the lease of another person, they have already gone through this credit check. Instead, you will simply need to be able to show that you can make the payments. The payments involved are usually not significantly more than buying the car. In fact, many times they can actually be less than buying a car, reducing your monthly costs.
  •  You don’t have to do a full term. In fact, you may be able to take over a term lease that is only a matter of months. Being able to take over someone else’s lease means that you can find a lease that is the best solution for you, rather than having the leasing agency set the terms.
  • You can sometimes get a deal. If someone really needs to get out of their vehicle lease, it’s very common for them to actually lease under the amount they are currently paying. It’s almost unheard of to have to pay more than what they are paying. The difference will be paid by the original lessor.

Making Sure Your Lease Takeover Is Legitimate

There is one caveat when it comes to taking over a car lease. You need to make sure that the lease is legitimate; that it has been approved when it comes to the leasing agency. Some leasing agencies allow takeovers and others don’t; just like some landlords allow sublets and others don’t.

If the leasing agency isn’t interested in allowing a takeover of the lease, nothing may happen initially. But if there are issues with the vehicle later on, you could end up in trouble. The car could get taken away unexpectedly which could lead to issues for both you and the original lessor.

Additionally, the original lessor may need to forward payments from you to the company — and they may not do this, which would lead to the confiscation of the vehicle.

The original lessor can also take back the vehicle legally if they desire it, if the lease hasn’t been transferred over appropriately, because there won’t be any written acknowledgement of the deal.

Related: If I Have Bad Credit Can I Lease A Car

On the other hand, it is not illegal to takeover a lease without consent of the leasing agency. It is done all the time. It may simply lead to complications when it comes to insurance; for instance, your insurance may not cover a vehicle that is leased without official documentation.

Checking with your insurance is incredibly important, as some insurance is designed to protect a driver (regardless of vehicle) and some insurance is designed to protect the vehicle (regardless of driver).

One final note; taking over a car lease with bad credit may have to be done on an unofficial basis if the leasing agency does have credit requirements. This is rare, but it is possible. That being said, no one should assume that their credit is bad based on the number or their credit report.

Where To Find A Car Lease

Finding a car lease to takeover may be a slightly involved process, because there are far fewer lease takeovers available than cars that there are on sale. On the other hand, the cars that are being leased are in undoubtedly better condition.

So rather than focusing on potential maintenance and repair issues, you simply need to take a look at the contract that is being presented. Online classified ads often have information available regarding those who are interested to find a car lease to takeover.

These classifieds, however, are usually for unofficial takeovers — takeovers that the car lease company will not be aware of. One of the easiest and best methods of taking over a car with bad credit involves third party websites.

There are many third party websites that are designed to “match make” those who have a car lease with those who need one.

Those who are looking for a lease can search based on the actual car that they want, in addition to looking for the lease terms. They can even set up automated searches that can alert them if a car that they might be interested in comes up for sale.

Further, the leases can be negotiated on a neutral online territory that tracks the information — so the person taking over the lease will be able to show that they have taken over the lease and that they have done everything that is required of them. It’s an easy way to confirm that the lease is legitimate.

Related: Can You Repay A Car Lease With Bad Credit?

Taking over a lease is often the best solution for those with bad credit. When you take over a lease, you don’t need to go through a credit check — and you can get a new vehicle that is going to be maintained and repaired on your behalf.

You also have far fewer responsibilities than would be associated with a car purchase, and you can walk away from the lease at the end of it without any consequence or cost.

But working with a reputable company is also incredibly important. If you aren’t going to be able to work with a reputable company, you may find yourself having the car removed entirely. It’s always best to work directly with the leasing company for this reason.

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