If you are leasing a car it is generally easier to transfer the lease to another person than it is to transfer a full auto loan. It is often not possible to directly transfer one loan between two people, but there are alternative ways to bring about the same result. [2] X Research source
There may be options in your contract to sell the car and pay off what you owe, or to trade in the car for another model and adjust the loan accordingly. [3] X Research source If you are uncertain about your position, contact the loan company and consider getting some legal advice from an attorney.
Until you have paid off all the debt on the car, you will not completely own it, so you will need to get permission from your loan company to sell it. Taking responsibility for the sale yourself will make it more likely that you will get a good price than if you left it to the creditor to sell. [4] X Research source Defaults and repossessions are costly for creditors so they will most likely be interested in alternatives if you can’t make the payments. If you have an agreement with a friend or family member this can help the process move more quickly.
If you are operating with one loan company this process could be more straightforward than if you are dealing with multiple organisations. By doing this you are basically transferring the loan and the outstanding payments to another person. Make sure that you also transfer the title of the car to the new buyer, in accordance with the laws in your state. Notify your insurance company that the car is no longer in your possession.
Generally, leases are easier to transfer to another person than loans are. If you are only leasing the car, you are not working towards buying it outright, so the contract will be shorter than a full auto loan. [7] X Research source
Some companies may work on a case-by-case basis, so they may be able to help you with the process.
One alternative might be just to sell your car outright rather than transferring the lease to someone else. If you are in negative equity, meaning the value of the car is less than the amount outstanding on the lease, selling the car won’t cover your debts. [10] X Research source You may be able to work out a deal with your creditors that enables you to turn in the car. So always speak to the leasing company about your options. [11] X Research source
Search online for car lease swap companies and look for customer testimonies and companies with positive feedback. Weigh up the costs of the fees with the value of the service being provided. If you need to find a buyer quite quickly, it could be worth it. Some lease swapping websites will enable you to search by make, model, and year.
The fees will vary but you should expect to pay around $200 to register with the listing site and place your listing. There will be optional extra costs that will boost the visibility and presence of your advert. [13] X Research source
You can also use social media websites. If you use Twitter, Facebook, Pinterest, LinkedIn, or any other social media site, post an ad on it. Be sure to include a photograph and the amount of the monthly payments, as well as the remaining term of the lease. Talk to friends, family, and co-workers. Let friends, family, and co-workers know that you are looking for someone to take over your loan or lease.
Submission of credit application by the new owner. When taking over a lease, a potential owner/lessee will have to fill out a credit application and be approved for the total amount remaining on the lease. [14] X Research source Payoff or transfer of the current lease. Once the new owner/lessee is approved for purchase/lease of the vehicle, the lease or title will be transferred to him or her. Creation of new lease in new lessee name. When lease for the vehicle has been opened or transferred, the new lessee becomes responsible for the remaining payments on it. If you are operating through a lease trading company they will guide you through this process. [15] X Research source
The seller should always accompany the buyer on the test drive. Be sure you are present for any independent inspections of the vehicle. It can be helpful to take photographs to ensure that you have proof of any minor blemishes or damage.
If you are in possession of the title to the vehicle, you will need to sign it over to the new owner or your financial institution. Check with the lease company for instructions on whom to sign over title to. Contact your state’s Motor Vehicle Department to transfer ownership. This will eliminate the possibility that you might be held liable for any damages after the transfer. Once the paper work is all complete, and you have handed over the keys, the process is complete. [17] X Research source
Speaking to the leasing company can help you decide whether to transfer the ownership completely by putting the lease in someone else’s name. If you do this the new lease holder will have to be checked and approved by the lease company. The alternative is to keep the lease under your name and have the other person pay you directly, but this may breach your contract, so be sure that you are clear.
Any damage to the vehicle will see its value depreciate and push you into negative equity. If you own the car, you will need to add the new driver onto your insurance, which will likely raise the premium. If you do not, the driver will not be covered, which is often illegal. Due to these risks you should carefully consider the risks before embarking on this kind of arrangement. Think about the trustworthiness of the person, as well as his ability to make the required payments to you.
