Swapping a lease can provide lots of benefits – both for you as well as the buyer. However you shouldn’t just jump into a lease swap, and should carefully consider it from all angles.
To be more specific, before you try to swap a lease there are several things that you need to check.
- Lease contract
The first thing you need to check is your lease contract. It should lay out any conditions that may be required for a lease transfer, as well as any restrictions, or fees and penalties that may need to be paid.
The reason this is important is because some contracts may completely prohibit or have a ‘lock-in’ period when the lease cannot be transferred. Additionally it will let you know what additional payments you may need to make before the lease swap is complete.
Although it may look confusing at first, if you know what to look for in a lease contract then you should find it much easier.
Almost all lease contracts will have a clause that sets out the maximum mileage for the lease, and the fees that need to be paid if you exceed it. Because of that clause you need to check the current mileage on your vehicle before you swap it – and figure out how much remains.
Any buyer that does their homework will want to know the current and maximum mileage of the vehicle. If there isn’t much mileage remaining, you may need to agree to provide other types of incentives in order to convince a buyer to swap the lease.
- Vehicle condition
Leasing companies generally allow a certain amount of fair wear and tear, but will charge fees for any excessive wear and tear. Before you swap a lease you need to thoroughly inspect the vehicle condition, and ideally should take lots of photos so that buyers can inspect it as well.
If you do not look at the vehicle condition carefully, either you or the buyer may end up liable for any wear and tear once the lease is over. Needless to say that is something that neither of the parties is likely to want, and many buyers may even insist on an independent inspection before a lease swap.
If you’re going to be advertising your lease swap, you should be aware that there are undoubtedly many others that are probably doing the same. It is easy enough nowadays to find a BMW, Ford, Chevy or even Mustang lease online.
At the end of the day you need to make sure that the deal you’re offering for your lease swap is competitive. The best way to do that is by checking other listings, and comparing them to yours in terms of the monthly fees, incentives, and other factors.
The more you know about your competition, the better you’ll be able to adjust your deal so that it attracts more attention from potential buyers.
If you check all of the areas listed above, you should be in a much better position to swap your lease. Not only will you have the information that you need to provide to buyers, but you should also be able to advertise it more effectively and make sure the swap itself goes smoothly.
In the long run knowing what you need to check will make swapping a lease that much easier, and help you to avoid issues and unforeseen liabilities in the future. Seeing as it really isn’t that difficult, it is really in your own best interests to be as prepared as possible.