Frequently Asked Questions About Toyota Lease Assumptions, Car Lease Transfers, and Leasing, Swaps and Trades
Auto Lease Assumptions
1. How do I get out of my lease before the contract has expired? - Toyota Lease Assumptions
In some cases, your financial picture might change unexpectedly and suddenly you can't afford those sky-high
payments on a BMW 528i. In another common scenario, you lease a fun little Mazda Miata one year, then the next
year you and your spouse have a baby. You're desperate to get into a bigger car, but you don't want to take a
financial bath. What to do?
You still have some options:
Find someone to assume the lease. Try TakeMyPayments.com. Make sure you locate a new lessee who is credit worthy. Expect to pay a fee to do the assumption about $300-500 with your lender. Check to make sure the mileage is appropriate for this
point in the lease. And also make sure you provide the car in good condition so the new lessee isn't taking over
You can also try to sell the car yourself. Call the bank and ask for the current buyout amount. Once you get that number, look at
the Edmunds.com True Market ValueSM price for a private party. Make sure to adjust the figure for mileage,
color, options and region. If the current market value is close to the buyout number, try to sell the car
yourself and pay off the bank. Even if you have to take a $1,000 or $2,000 loss, you are better off than
continuing the payments or walking away from the car. Remember, in addition to your lease payment, there are
insurance payments, too. (Note: Sales tax can cause a problem if you buy the car, then have to resell it
immediately. The bank may help you by arranging to transfer the title directly to the new owner. A dealer might
also help you arrange this transaction, but they will want reimbursement for their trouble.)
Turn in the keys and walk away from the lease. This isn't a good option. If you give the car back to the
lessor, and walk away, it will go on your credit report as a "repo." TakeMyPayments.com can assist to find someone to assume your lease.
2. How do I buy my car at the end of the lease? - Toyota Lease Assumption
You've come to the end of your lease, and it hits you: After you give the car back you won't have anything to
drive. And you like the car. It never let you down and it fits your lifestyle.
Then the brilliant idea occurs to you. You'll buy the car. But when you check the contract your "residual
value" is more than you want to pay. What do you do?
"Most people don't realize that in most cases the buyout is negotiable," In fact, "It is in the best interest
of the leasing company to sell the car to you. The way the leasing business is now, if they take the car to
auction they're really going to get killed. They have to pay auction fees, plus take a low price for the car.
But maybe you can offer a lower buyout or even finance it through them."
So, how do you go about this?
"The customer needs to make sure they don't buy it for the 'average retail' price," Look in the various pricing
guides, such as Edmunds.com True Market Value (TMVSM) and offer the bank a figure that is closer to wholesale.
If you are leasing from the manufacturer, such as Ford Motor Co., call a Ford dealership, preferably the one
where you bought the car. A lot of dealerships have a salesperson designated for accepting lease returns. Tell
them you want to buy the car. Ultimately, it will be the Ford Motor Co.'s decision whether to sell you the car
at that price or not.
"You will have more success (buying the car) through an independent leasing company," Get the phone number from
the car's payment book. Call the bank and say, "'My lease is due soon. What is the buyout number?'" Tell the
bank you are interested in buying the car and possibly financing it through them. Get the phone number of the
person in charge of making this decision. When you reach her, make your offer. You may be pleasantly surprised
at her response.
3. How do you avoid extra expenses at the end of the lease? - Toyota Lease Assumption
Many consumers are anxious about leasing's when you return the vehicle to the dealer and have them inspect its
condition for extra charges. Usually, the charges are assessed because of excess wear and tear or additional
miles on the odometer above the agreed-upon figure in the contract.
These fears are not unfounded, as the leasing market tightens up, banks are looking for a way to make money
from returned cars. They will be more critical about wear and tear and any deviations from the lease contract.
Bottom line: Keep the car at a condition above and beyond "average wear and tear" to avoid penalties.
Here are a few additional tips to prevent dings to your wallet as you say goodbye to your leased vehicle:
Customers get upset about having to pay mileage penalties. But when you decided to lease the car, you said you
would drive only 12K miles a year. If you drive more, you have to pay for the value of the car you have used. In
other words, they have gotten something of value for the extra money they have to pay.
- Have the vehicle washed and detailed.
- Make sure you service the vehicle at the required intervals.
- Keep all maintenance records.
- Have the vehicle serviced just before you turn it in.
- Fix things such as windshield chips, which are usually covered under the insurance and may cost you nothing
- Make any needed repairs yourself.
- Stay within your mileage limit.
- If you have really high mileage fees, consider selling the car yourself rather than paying the
- Any dents should be removed by a local body shop rather than turning it in with the damage.
Additional Leasing Tips
Many problems with leasing can be avoided by negotiating a good lease in the first place. If you need to find
someone to assume your lease, try TakeMyPayments.com for assistance.
In conclusion, put as little money down as possible. This is very important. There was a client that leased a
Toyota 4Runner and put down two thousand dollars. Three months later, his wife totaled it. Gap insurance did
help pay for the difference between what his insurance company paid and the actual payoff of the car. But he
didn't get his two thousand dollars back. "He was not happy." There's an alternative. If you have to put that
two thousand down to get the payment where you want, take the two thousand dollars and put it in a separate
account and use a portion of that each month to help make the payment."
Stay away from subsidized leases with inflated residuals. You won't be able to afford the car at the end of the
lease because it won't be worth what the contract states. You will be stuck and will have to turn it in. A lower
payment isn't always a better deal.
Don't go into a lease longer than you would normally keep a car. If you keep a car about three years, do a
three-year lease. A four- or five-year lease will be harder to get out of and more difficult to turn in without
extra fees. Don't lease longer than the warranty period that covers the car.
When selecting a vehicle, choose a car with a naturally higher residual. If the vehicle holds its value - or
surpasses its expected value there may be an option to buy it and make money at the end of the lease.