Blog by SwitchTrader.com

Why Should I assume a lease?

Taking over short-term  lease allows you to save thousands of dollars and puts you into a vehicle for a fraction of the cost while obligating you for a period shorter than if you were to originate a new lease. (1) Taking over a lease allows you can take advantage of a lease seller’s down payment used to obtain the vehicle. (2) Allows you to get into a vehicle with no down payment. (3) Motivated lease sellers often offer a variety  incentives  including cash in hand, offer to make your first month payment, offer to pay the transportation costs from one state to another etc., these factors depend your own ability to negotiate with the lease seller. Switchtrader.com does not get involved in these negotiations.

What are the fees for lease buyers?

Two types of buyer related fees are involved in the lease transfer process. These include buyer registration and success fees for Switchtrader.com and separately, lease transfer fees and credit application fees charged by the leasing company involved. Leasing companies fees vary between companies so contact the leasing company involved and ask about their transfer policy including fees. (link…find your leasing company) Switchtrader.com Buyer registration fee $29.95 (allows access to seller contact information for 60 days) Switchtrader.com success fee $129.95 (due and collectable when buyer submits to credit check by leasing company to initiate transfer process). However in the event that a Lease Transfer is declined by any party for any reason, Switchtrader.com will credit $129.95 towards future Lease Transfers for the Buyer. Switchtrader.com provides guidance throughout the lease transfer process.

How do I search for a vehicle on Switchtrader.com?

Searching for a vehicle on our site is easy, from our home page click the green “Search Listings” Tab, you can then refine your search further from that point. Browsing the Switchtrader.com site is free of cost however you must pay a $29.95 buyer registration and access fee good for 60 days before access is granted to lease sellers contact information. As an unregistered browser the “ e-mail seller” and internal “message center” features are disabled,  this ensures our lease sellers are contacted by people who a seriously interested in assuming a lease.

What if I don’t find exactly what I’m looking for?

Switchtrader.com’s listings are constantly being updated so keep checking our site for new postings. It’s important to act quickly in examining the new listing or listings because other potential lease buyer might be waiting as well.

Is good a credit rating required to assume a lease?

Yes, good credit a prerequisite in when seeking to get a lease transfer, The number one criteria examined by the lease finance company is the applicants credit. All potential lease buyers are required to be credit approved by the leasing company of the lease seller. Leasing companies all  have different standards for decision making on credit approvals, and for this reason it is difficult for Switchtrader.com to say what type of credit history is required in order to gain approval on a lease transfer. However, in general Switchtrader.com has found that a fairly high level of credit is necessary to successfully take over a lease. If you have concerns about your ability to qualify for a lease transfer, please Contact Us and we will be happy to discuss the situation with you.

Who is responsible for possible lease-end charges?
The Lease Buyer would be responsible for any termination charges at lease end. The Lease Buyer is assuming the remainder of an in-process lease, and will be responsible for the lease-end terms as included in the original lease contract. Lease-end charges may include disposition fees, excess mileage fees and excess wear & tear assessments. All potential lease-end charges will be outlined in the original lease document.

What is gap insurance and what does it cover?

In the event of a total loss of a vehicle due to accident or theft at any time during the lease period, GAP insurance covers the difference or gap between what your insurance company pays out and what you owe the financial institution. However, keep in mind that GAP insurance does not reimburse you for any money paid out at lease signing. Therefore, your initial cash outlay should be kept to a minimum. We recommend avoiding large cap cost reductions, as this money is never recouped even if you take the lease full term.

Are there any lease transfer tax issues for a lease buyer?

Switchtrader.com does not give tax advise and recommends you contact your local  department of motor vehicles for answers pertaining to tax obligations relating to a lease transfer transaction.