Lease Transfers: The Exit Strategy Most People Miss
When people think about getting out of a car lease early, they usually imagine writing a huge check for early termination. But there is a much cheaper option that most lessees do not know about: the lease transfer.
A lease transfer (also called a lease assumption or lease swap) lets you find someone else to take over your remaining lease payments. The new person assumes the contract, including the monthly payment, mileage allowance, and end-of-lease responsibilities. You pay a small transfer fee, and once the leasing company approves the new lessee, you are done.
This can save you thousands compared to early termination, and for the person taking over, it is a way to get into a short-term lease without the commitment of a full 36-month contract.
How a Lease Transfer Works Step by Step
- Confirm your leasing company allows transfers by calling them or checking your contract
- Gather your lease details: monthly payment, months remaining, miles remaining, and any transfer fees
- List your lease on a marketplace like Swapalease or LeaseTrader
- Interested buyers contact you and review the terms
- The buyer submits a credit application to your leasing company
- If approved, the leasing company processes the transfer and updates the contract
- The new lessee takes over all remaining payments and obligations
- You receive confirmation that the transfer is complete
The entire process typically takes two to four weeks from listing to completion, depending on how quickly you find a buyer and how fast the leasing company processes paperwork.
How Swapalease Works
Swapalease is the largest lease transfer marketplace. Here is how the platform works from both sides:
For Sellers (People Exiting a Lease)
- Create a listing with your vehicle details, payment amount, months remaining, and miles left
- Pay a listing fee (typically $75 to $100 for a basic listing)
- Optionally offer a cash incentive to attract buyers faster
- Respond to inquiries from interested buyers
- Once a buyer is found, Swapalease guides both parties through the leasing company's transfer process
For Buyers (People Taking Over a Lease)
- Browse listings filtered by make, model, location, payment, and months remaining
- Find a vehicle with terms that match what you want
- Contact the seller and review the lease details
- Apply for credit approval through the original leasing company
- If approved, take over the lease with all existing terms
Swapalease charges the buyer a fee as well (usually $15 to $25 to contact sellers). The platform handles communication and provides guidance, but the actual transfer is processed by the leasing company.
How LeaseTrader Works
LeaseTrader is the other major platform. It works similarly to Swapalease with a few differences:
- LeaseTrader offers a concierge service that handles more of the paperwork
- Listing fees and buyer fees may differ from Swapalease
- The user base is smaller but still active for popular makes and models
Both platforms are legitimate and have been operating for over a decade. Many people list on both simultaneously to maximize their chances of finding a buyer quickly.
Which Leasing Companies Allow Transfers?
This is the first thing to check. If your leasing company does not allow transfers, this option is off the table.
Companies That Generally Allow Transfers
- Toyota Financial Services
- Honda Financial Services
- Ally Financial
- Chase Auto Finance
- US Bank
- Ford Motor Credit
- GM Financial (with restrictions)
- Chrysler Capital / Stellantis Financial
Companies That Restrict or Prohibit Transfers
- BMW Financial Services (restricted in recent years)
- Mercedes-Benz Financial (policies vary)
- Some captive finance arms may restrict transfers in certain states
Policies change, so always call your leasing company directly to confirm. Ask specifically: "Does my lease contract allow for a lease assumption or transfer?"
What Does a Lease Transfer Cost?
The costs involved are typically:
- Transfer fee from the leasing company: $100 to $500
- Marketplace listing fee (Swapalease/LeaseTrader): $75 to $150
- Cash incentive to attract a buyer (optional): $0 to $2,000
Total cost: typically $200 to $2,500, depending on how attractive your lease terms are and whether you need to offer an incentive.
Compare this to early termination, which can cost $5,000 to $15,000+ depending on how many payments remain. The transfer route is almost always cheaper.
When You Might Need a Cash Incentive
If your monthly payment is higher than market rate for the same vehicle, or if you have used most of your mileage allowance, buyers may need an incentive to take over your lease. Common incentives include:
- Offering to cover the first one to three payments ($400 to $1,500)
- A flat cash bonus ($500 to $2,000)
- Covering the transfer fee so the buyer pays nothing upfront
Even with a $1,500 incentive, the total cost of a transfer is usually a fraction of the early termination penalty.
The Liability Question: Are You Off the Hook?
This is the most important question to ask your leasing company: "After the transfer is complete, am I fully released from all liability on this lease?"
Some companies provide a full release, meaning once the transfer is approved, you have zero responsibility for the lease going forward. Others keep you as a secondary signer, meaning you are on the hook if the new lessee misses payments or damages the vehicle.
If your leasing company does not fully release you, factor that risk into your decision. A transfer with residual liability is still better than an early termination in most cases, but it is important to know where you stand.
Tips for a Successful Lease Transfer
- Price your listing competitively by checking similar vehicles on Swapalease
- Include clear photos and accurate details about condition, mileage, and payment
- Be responsive to inquiries; quick responses lead to faster transfers
- Keep the car in good condition; buyers want a vehicle they can see themselves driving
- Be realistic about timing; most transfers take two to four weeks from listing to completion
When a Lease Transfer Is Not the Best Option
A transfer is not always the right move. Consider other strategies if:
- Your vehicle has significant equity (buyout-and-sell may put money in your pocket instead)
- You have fewer than three months remaining (just make the remaining payments)
- Your leasing company does not allow transfers
- You need to exit immediately and cannot wait two to four weeks for a buyer
How Vantage Helps with Lease Transfers
We help clients evaluate whether a transfer is the best exit strategy compared to a buyout, trade-in, or waiting it out. If a transfer makes sense, we can guide you through the process and help you price the listing competitively.
We also offer LeasePass, which builds lease exit flexibility into your lease from day one, so you do not have to scramble for solutions when life changes.
What Is the Catch?
Lease transfers are not instant. You need to find a buyer, wait for credit approval, and allow the leasing company to process paperwork. If your lease is with a company that maintains your liability after transfer, you carry some residual risk. And if your lease terms are unattractive (high payment, low miles remaining), you may need to offer a cash incentive to attract a buyer.
Vantage charges a broker fee for helping with lease exits, and we are upfront about the cost. We only recommend a transfer if the math makes sense compared to your other options.
The Bottom Line
A lease transfer is one of the most cost-effective ways to exit a lease early. It costs a fraction of early termination, it is available for most major leasing companies, and platforms like Swapalease and LeaseTrader make finding a buyer straightforward.
Not sure if a transfer is right for your situation? Get your free quote from Vantage in 5 minutes and we will evaluate all your lease exit options side by side. No spam. No pressure. Unsubscribe anytime.
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