Escaping your Car Lease
Web sites match up people who want out of deals with folks who want in
BY PHYLLIS FURMAN
NEW YORK DAILY NEWS
Monday, August 20th 2007
Lease payments on a car you no longer want can kill your budget, but several Web sites can help people get out from under them.
"We're like the Match.com of car leases," boasted LeaseTrader.com CEO Sergio Stiberman.
LeaseTrader and rivals including Swapalease.com and LeaseTrade.com can help people suddenly facing a financial bind or who no longer need a car. "People who want to get out of a lease are in a real jam," said Philip Reed, consumer advice editor of auto information Web site Edmunds.com.
Such deals can also help people who need a leased car at a good price. A lease seller in Manhattan might be someone who just moved to the city who "doesn't want to pay $700 a month on parking," Stiberman said.
The potential advantage for lease buyers is the ability to get a car for a short period while avoiding hefty upfront fees.
Cars recently showcased on LeaseTrader, which had 20,000 transactions last year, included a 2005 BMW Z4 convertible with 19 months remaining on its lease going for $350 a month, and a 2007 Mazda CX-7 with 33 months remaining on the lease at the same price.
Sellers pay a fee of $79.95 to list their cars on the site. Buyers, who undergo credit checks before they can contact a seller, pay $39.95 for a 60-day membership.
When a match is made - it usually takes a few weeks - each side pays LeaseTrader $149. There's an extra charge of $199 if you want a LeaseTrader inspector to check the car.
Keep in mind: The leasing company will also charge from $45 to $595 in fees. While most leasing companies allow transfers, a few, including Honda Financial, won't participate, Stiberman said.
Some companies will hold the original leaseholder responsible for missed payments even after a transfer, so check those details first.
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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 Monday, August 20, 2007 1:51 PM