CAR LEASING NO LONGER A TRAP
BMW 3 Series Most Desirable Car for Lease Transfers
Michael Rose, Great Cars
Saturday, March 08 2008
MIAMI – If you bought a car you could always sell it at any time. If you leased a car you enjoyed lower payments, maybe a lower down payment and no worries about getting rid of it at the end of the contract. But one of the drawbacks was that you were stuck with your vehicle for the duration unless you wanted to pay a hefty termination penalty.
In our society of no-fault divorces and second chances this just didn’t make sense to Sergio Stiberman who wanted to trade-in his leased BMW 7 series for a 3 Series convertible. Instead of riding out the lease he launched LeaseTrader.com, a company to help people such as himself find someone to assume their leases.
“I liked leasing and had about fourteen months left on a 7 Series BMW but I was in Miami and realized I wanted a convertible,” explained Stiberman. When the dealer told him it would cost him $14,000 to get out of his current lease or that his only other options was that this could be added to the balance on his longed for 3 Series he had an epiphany.
He realized that there must be others in the same situation and after a little investigation he decided to set up an online, “marketplace where people could advertise their cars,” he said.
“There were companies and banks that did it but they didn’t really publicize it,” and it’s taken some time to convince many of these companies that this is about, “customer satisfaction,” said Stiberman.
The idea is that you make people happy and don’t make them feel trapped. They get out of a car – for whatever reason – change in economic circumstances, need for a bigger car (baby on the way) or they want a convertible and someone gets a car they want without a down payment. The theory is to create a win-win situation and the car makers might even pick up another sale since whoever is trying to trade their lease probably will need another car.
He worked out arrangements with BMW Financial (of course) US Bank, SAAB Leasing, Wells Fargo and others but has found that there are still some hold-outs like Honda Financial Services that haven’t embraced lease trading. Joining Honda are Nissan Financial Services, Chase Auto Finance and Fifth Third Bank, which “all provide roadblocks to customers who want more flexibility,” said Stiberman. “Eventually they will turn.”
The process is pretty simple. If you’re curious about what’s currently being offered you can browse LeaseTrader.com for free. When you think you are really serious about finding something that tickles your fancy you pay a $39 fee for a 60 day membership that includes a credit check. If you find the car of your dreams you contact the owner to let them know you’re interested. If this is the one then LeaseTrader.com helps you transfer ownership for a $149 fee that also includes a third-party inspection.
There are also fees for the leasing company. Each leasing company has a different fee for the service that runs as little as $50 for some to $600 for GMAC. Depending on the lease originating company the transaction can take a few days to a few weeks to process. This clearly is one area that needs some work. Once all the paperwork is done the car is ready for you to take over. LeaseTrader.com can even arrange transportation if necessary.
If you’re thinking about what car you should lease to make sure you can get out of it easily if your circumstances change, Stiberman suggests the BMW 3 Series. These cars turn over in days when listed on his website. A gas guzzling SUV or pickup might take longer.
Before you lease your next car you might want to consider one of the other top-ten most popular transferred lease vehicles according to user activity on LeaseTrader.com:
1. BMW 3 Series
2. Mercedes C Class
3. BMW X Series
4. Land Rover Sport
5. Cadillac Escalade
6. Cadillac CTS
7. BMW 5 Series
8. Mercedes SL Class
9. Mercedes E350
10. Mercedes S550
Stiberman has developed some guidelines for people to think about before they lease a car that can be found on his website but he stresses that the most important point is, “you do not have to remain in your vehicle lease for the life of the contract. Transfer your lease to someone else when your vehicle needs change.”
For more information visit www.leasetrader.com , or call 800-770-0207.
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com.
Print | posted on Saturday, March 08, 2008 2:26 PM