Lease takeover
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If you exceed the limit, you may have to pay the leasing company an extra fee. One of the central features of any car lease is a guideline for the maximum number of kilometres or miles you can log on the vehicle. The leasing company could charge a transfer fee to complete the takeover and reassign the lease to you. While a lease takeover could possibly save you money when leasing a vehicle, there may be an upfront cost.
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This number may be the same as residual value, higher or lower, depending on the vehicle’s make, model and condition at the end of the lease. Market value means what the car could be sold for to a private buyer. You’ll want to know this number if you think you might want to purchase the car from the leasing company once the term expires. Residual value means what the car will be worth at the end of the lease term. So if the original lessee had an 18-month lease and you take over after 12 months, you’d only be in the lease for the remaining 6 months. As the person taking over the lease, you’re responsible for fulfilling the remaining term. This can refer to the length of the original lease contract. The most important ones to be familiar with include: There are a few key terms to know if you’re considering a lease takeover in Canada. That means you would be subject to any rules, restrictions or guidelines spelled out in the original lease, as well as the current lease payment. When you agree to a lease takeover, you’re agreeing to the lease condition and the vehicle condition as-is. Rather than terminating the lease and potentially having to pay a penalty for doing so, they transfer their lease to someone who agrees to finish out the lease term. The original leaseholder wants to get out of their lease early. Rather than signing a new lease with a dealer, you’re agreeing to take over a lease from someone else. What is a lease takeover and how does it work?Ī lease takeover offers you an alternative to traditional car leasing. If you’re not familiar with the concept of a lease takeover, this primer covers everything you need to know. This type of arrangement can help you get a deal when leasing a vehicle, if you’re reading the fine print. If you want a shortcut to leasing, you might consider a lease takeover.
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If you’re looking for your next car, a lease takeover is one option you might not have considered.