As straightforward as it may appear, car ownership can sometimes throw us a curveball. You've just got a spiffy, brand-new car on lease and now, life happens! A job relocation, financial instability, or simple boredom sets in you need to shift gears (pun intended), and fast.
So, the question arises-can a car lease be transferred to another person? Can we transfer a car lease to a family member, etc? Let's find out in this guide:
Understanding the mechanics of car lease transfer
To start, let's get our basics right about what a car lease is. A car lease is a long-term rental contract where you pay a monthly fee to use a car for a preset period and a mileage cap. Now imagine you no longer need this leased car for whatever reason and would like to pass it on to someone else. That's where a lease transfer or transfer of contract comes into play.
What exactly is a lease transfer?
A lease transfer, simply put, is the process of transferring your lease contract from your name to someone else's (the new lessee).
The why of lease transfers
Why would someone want a lease transfer? Here are some common reasons:
1. Unforeseen changes in personal circumstances like job relocation or financial instability.
2. A desire for a change.
3. To steer clear of early termination fees.
A crucial point to note here is that insurance isn't usually included in lease transfers, so make sure you cater for that aspect too.
How long will this take?
The duration of this process varies depending on individual finance providers but generally falls somewhere around two months maximum. You can speed things up by keeping all required documents handy and signing the lease transfer documents promptly. In some cases, the entire process can be done within a week.
Pros and cons of transferring your car lease
Before you dive headfirst into a lease transfer, weigh out the pros and cons:
Pros
- Avoid heavy early termination fees.
- Attractive deal on a new car with low mileage and no large deposit for the new lessee.
- No long-term commitment for the new lessee.
Cons
- Potentially lengthy process.
- Administrative/lease transfer fees.
- Possibility of retaining some responsibility for the car after transfer (check your contract T&Cs).
When do I stop paying?
You'll have to continue paying your monthly rentals until the lease transfer is officially completed. The monthly payments are then transferred to the new lessee.
Finding a new lessee
Don't know anyone who wants to take over your lease? Many websites can help match you with interested parties.
The price tag
There is an administration fee associated with a lease transfer which varies from one finance provider to another. In general, this fee could be anywhere up to ₹35,000.
Finalising the lease transfer
The lease transfer becomes final once all required fees and transfer documents have been received by the leasing company.
Am I still liable?
Once all information declared on the lease transfer is accurate at the time, and you have observed all legal obligations, all liability passes to the person taking on the lease agreement Phew!
What about long-distance transfers?
In such cases, arrangements are generally made to inspect the vehicle and get it to its new owner as agreed upon. This could involve anything from meeting halfway to hiring independent inspectors.
Conclusion
In summary, there are several ways to exit a car lease contract early and a lease transfer is a solid contender if you're looking to bypass early termination fees. Just ensure that your financing company is on board before moving ahead.
At Quiklyz, we understand the evolving needs of modern-day commuters which is why we strive to offer flexible and convenient solutions like car subscription plans. Check out our comprehensive car subscription model as an alternative to a car lease.
