Car lease contracts are a great alternative to buying a car outright and it has many advantages for those of us who enjoy living (and driving) in the fast lane. However, getting out of a car lease contract can be a bit tricky.
Many people have taken out car lease contracts in good faith only to succumb to unexpected circumstances such as:
Whatever the reason for wanting early termination, many have been left frustrated to discover that their lease agreement requires that the car lease contract is fulfilled regardless. However, one things that isn’t always made clear is that on some occasions the contract can be transferred and fulfilled by someone else.
The types of car contracts that can be transferred
Not all car contract are transferable so it is important to check with your car lease funder if you are able to transfer. The transfer of your car lease contract depends on the funder who you have the agreement with. It’s also worth noting that you can only transfer certain types of car contracts and they must transfer for the same type of use. For example, you can not transfer a business use car lease contract to somebody who wants to have it for personal use. Most finance companies will allow transfers to take place, subject to the person who wishes to take over the lease passing their credit check, and a transfer fee being paid. If a contract transfer is not possible, you can ask for a payment breakdown and agree on a settlement figure which you’ll need to pay before you can get out of the contract.
How are contracts transferred?
If you do have consent to transfer your car lease contract, you will have find someone willing to take over the contract and payments on your lease agreement. The person must reapply and be approved by the contracts finance provider otherwise you will not be able to transfer.
There may also be an administration fee to facilitate the exchange and you might want to negotiate an incentive with the person who is taking over your contract. If you are not able to transfer the contract then the alternative is to hand the car back to the lease company and pay the early termination fee which can be as much as the value of what is left of the contract.
How contract village can help
Once you have confirmed that your car lease contract is transferable, ContractVillage.Com can help connect you to people who are looking for car contracts just like yours. You can register and create a listing. Interested site users will message you and may want to meet to inspect the vehicle. Once agreed, you can connect them to your contracts service / lease provider to finalise the contract transfer.
Click here to get started.