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Lease Trading **Uncensored**

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On: Thu, Sep 8, 2011 at 3:46PM | By: Chris Salamone


Lease Trading **Uncensored**

There are a few popular websites that push lease trading, but LeaseTrader.com is perhaps the most recognizable and easiest to work with. In as few as four days to six weeks, the seller’s leasing company can process the transaction and put you in a previously leased vehicle at significant savings. But the process is unclear, obscured from the suspicious lens of the prudent buyer. Hopefully, we can clear up some of the muddy water with a lease trading rundown. 

For starters, people who assume leases don’t have to pay any down payment on their new car. And the reason is simple: the former owner already paid!

Now, imagine the original down payment was a large number. When your assumed lease expires, which should be a somewhat short period because of the time already used, most contracts allow for a Lease End Buyout. If you absolutely love the vehicle and buying it now seems like a good idea, the buyout price should be much lower than purchasing an equivalent used car from that same year because of (a) the down payment and (b) the monthly payments someone else covered for you.

What else? How about extra miles. Sometimes the former driver will leave behind unused miles from previous months or years. After the lease is taken over, those miles transfer to the buyer—something like roll-over minutes. So an acquired lease could potentially offer dramatically more miles, at lower cost, than leasing a new vehicle straight from the dealership.

Like anything else, acquiring a lease does have some drawbacks. The main problem most people have is paying for a used ‘lease worthy’ car. For example, no one is comfortable leasing a two-year-old Mercedes-Benz SL with torn leather seats. So be sure your target vehicle meets your expectations before signing anything. Second, you weren’t at the original lease negotiation and, therefore, the terms of the lease probably don’t reflect your idea of the perfect deal. It’s best to consider those bizarre terms a transaction cost.

In my estimation, the greatest downside to leasing any car is the lease term. Nobody wants to be stuck in a car they don’t like for 36, 48, or, by some cruel twist of fate, 60 months. However, by trading a lease these long terms can be avoided all together because buyers assume the remaining lease obligation. And let’s be honest, if you’re actually in the market for a high-end, luxury-type vehicle then you probably have no interest in driving this car beyond a year or two anyway.

Lease trading allows people to have the flexibility to get more cars, more often, without destroying their savings account.




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