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What Is a Car Lease Transfer?
A car lease transfer allows you to legally transfer your current lease agreement to another qualified individual before the lease term ends. Also known as a lease assumption, this process lets someone else take over the remaining payments, mileage limits, and responsibilities for the vehicle.
It’s a smart way to exit a lease early, especially if your financial or lifestyle needs have changed.
Car Lease Transfer Meaning in Car Leasing
In the context of car leasing, a lease transfer means you’re handing off the contract, not selling the car. The new lessee assumes the original terms, including:
- Monthly payment amount
- Remaining lease duration
- Mileage allowance
- Wear-and-tear expectations
The leasing company must approve the new applicant, and some may charge a transfer fee, which typically ranges from $100 to $500.
Once approved, the lease is reassigned, and you’re often released from financial responsibility, though some lenders keep the original lessee liable in case of default, so read the fine print.
When a Car Lease Transfer Makes Sense
Lease transfers can be a great option if:
- You need to get out of your lease early without paying steep termination fees
- You’ve had a lifestyle change (job loss, relocation, new baby, etc.)
- You’re not driving as much anymore, and the lease no longer fits your needs
- You simply want to avoid excess mileage or end-of-lease wear charges
Example: You have 14 months left on a lease with a $420/month payment. A new lessee takes it over, saving you nearly $6,000 in future payments and any potential return fees.
How the Car Lease Transfer Process Works
Here’s a step-by-step of how most transfers work:
- Find a qualified taker: Use platforms like Swapalease or LeaseTrader
- Get leasing company approval: They’ll run a credit check and assess the new applicant
- Pay any transfer fees: Often split between both parties
- Transfer paperwork and registration: The leasing company handles contract updates
- Hand off the keys: The new driver takes over officially
Pro tip: Be clear about your lease’s mileage history. The new lessee inherits your remaining mileage, not a fresh allowance.
Things To Watch Out For
While a lease transfer can save you thousands, there are a few risks to understand:
- Secondary liability: Some contracts keep you partially responsible if the new lessee defaults
- Transfer restrictions: Not all leases are transferable, and some brands (like Honda or Nissan) may have stricter policies
- Credit requirements: The new driver must be approved by the leasing company, and high credit standards still apply
Related Terms in Car Lease Transfer
- Previous term: Buyout Quote
- Next term: Disposition Fee
- Also related: Early Lease Buyout, Swapalease, Lease Assumption, Transfer Fee