Lease a car – at a discount. Via Shutterstock
A friend tipped me off to SwapALease, where you can take over another person’s car lease, often for a discount. I haven’t personally used the site, but I interviewed a SwapALease rep and if you are considering leasing a car, it can often save you money on the cost of a car.
Note: When comparing prices between SwapALease and a dealer, make sure to account for taxes, fees, and interest.
How SwapALease works:
- There are thousands of listings across the country, though the bulk are located in New York, California, Arizona, Michigan and Florida.
- Sellers pay a $159 “success fee” to list and transfer their vehicle. Or, a seller can pay $99 to list, and an additional $79 to transfer their lease when a buyer is found. Occasionally, the buyer pays the transfer fee.
- Listings are color coded:
a. Sponsored listings are GREEN
b. Private individual listings are ORANGE
c. Dealer listings are BLUE
- What is NON-NEGOTIABLE: Monthly payment, mileage allowed, and lease-end date. These terms are controlled by the leasing company and the lease is transferred intact.
- What IS NEGOTIABLE: A lump sum payment, usually from seller to buyer, but occasionally the other way around. “More than 50 percent of transfers involve a cash incentive,” said PR rep John Sternal. A seller may ask for a lump sum payment from the buyer if s/he prepaid for a lot of miles and didn’t use them, or had to pay a large down payment when s/he started the lease.
- Once the buyer and seller come to an agreement, it takes about two weeks to actually get the car in the buyer’s hands. Longer if the car has to be transported long distances.
- You can take over a lease, start a new lease, or even buy a car on SwapALease.com.
- Prices on SwapALease are often lower than what you could get at a dealer. “It is safe to say there is a very good chance that it’s lower than what you would get at a dealer,” Sternal said.
Interesting fact: About 60 percent of BMW you see on the road are leased! Luxury cars are more often leased than practical cars. For example, a Toyota Camry has a lease rate of 20-30 percent, Sternal said.
Would you take over a car lease for a discount?
Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
Leases in general are a bad deal for 90%+ of people who use them, but taking over someone’s lease is usually the least expensive way into one. There are a few situations in which leasing really does make the most sense–like if you have a job where your employer gives you a lease stipend, or if you are a realtor of upscale properties who needs a late-model car for driving clients around.
@Jenny @ Frugal Guru Guide I agree! I’d never consider a lease myself, but if I was considering buying a car and wanted to drive it for a few months first, I would consider taking over another person’s lease. I don’t know anyone who has leased a car from the start however. I guess I have a lot of frugal friends!
If you can take over the VERY END of a lease, you can tell if there’s some equity built up in the car based on the terms of the lease, and you MIGHT be able to end up a little bit ahead if you’re allowed to buy it on the same terms as the original lessee, especially if you can get them to pay you a bit for taking over the lease.
It’s a long shot, but it’s possible!
OMG, I am not sure what lease payments generally are, but the BMW’s and Mercedes on this site are $1200 a month!! No Thanks, we are looking for a new car, but won’t be leasing and we will be selling our old car ourself (prior to buying a new one).
@Greta That does sound like a lot! Though I too, am not familiar with how much BMW and Mercedes lease for. I saw at least one BMW lease for significantly less, around $300, so perhaps the prices you saw were filtered “highest to lowest.” In any case, I think your plan to sell your old car then buy a new car is a good one.
Sometimes it’s not the lease that gets you, for example, in Chicago the car company leasing the auto may require you to buy more even coverage. It’s to cover themselves in case the car is stolen or in an accident.
In my opinion, it is better to buy a reliable used car than to spend money on a cheap new car that will not last long. I think that everyone who is currently planning to buy a car should visit Link with a large selection of used cars in excellent technical condition. In the catalog you can find and choose cars of Japanese and American production.
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