Exiting a lease via leasetrader et al

[Sylvester1346]

Apologies to those who have already seen this post and responded under the market place section but i wanted to broaden my audience to get as much info and help as possible. I have currently just passed the 12 month mark of a 36month lease term and am looking to exit my lease via a site such as lease trade or swap a lease. However, having spoken to Porsche Financial it appears that as the origonal lease holder i will not be removed from the lease agreement, instead the third party will be added. This makes me and my credit rating liable if the new lease holder defaults on any of the payments. As you can imagine this makes me slightly uncomfortable. Has anyone heard of or had any experience of a third party defaulting and the origonal lease holder being held liable. How could I track that the payments are being met? My concern is also that if this instance did arise i won't physically have the vehicle in my possesion, so i will have a debt but no asset. There could also be an issue when the lease holder hands back the vehicle after the remaining term expires, if there are any costs incurred. Can anyone provide some advice how to tackle this issue or have had personal experiences. I really want to make sure i undertsand this issue before proceeding. Cheers

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[GT3 Chuck]

I'm guessing if your credit rating can be affected you may be the deep pocket in case the third party is involved in a serious accident (the way lawyers operate is to sue every name they can come up with...if your name is on the lease then at the very least you will be included in any action)...better to wait out the lease period and have someone assume at that time or give it back...having a third party added to your lease is BS...

[CMOS]

Can you buy the car from the lease and then resell it to the dealer or a private party?

What kind of Porsche is it?

[Axxlrod]

I assumed a lease on Boxster S a few years ago from a guy via leasetrader. PFS did not remove the original lessee from the lease; they only added my name to it. So, yes the orig guy took a risk by giving me the car and trusting that I would make the payments. Not sure I would be willing to be that trusting. My credit score is very important to me, so I told him not to worry about me not paying. He also gave me some $ ($4k) upfront to take over the lease. This was because he did scrape 3 out of the 4 wheels on curbs. I had them repaired by wheel enhancement for about $100 each. We agreed that his financial obligation for the car was over, and any fees or penalties when I turned the car in would be my responsibility. It worked our OK for me and him, but you have to find the right person.

[yrralis1]

Take your loss now rather than lose sleep for two years wondering if someone else is sinking your credit .

[NorthVan]

Originally Posted by yrralis1

Take your loss now rather than lose sleep for two years wondering if someone else is sinking your credit .

+1, I would have to agree that this is the best way. What would stop a third party from driving your car for he next two years for free?

If you want to let some drive it, I am pretty safe

[stevepow]

There's a lot of good info here:

http://www.swapalease.com/help_files...co.asp?coid=37

and here:

http://www.swapalease.com/leaseDefault/intro.asp

I'd suggest read up, call them, ask a lot of questions - same with PFS - if after some good Q&A you feel good about it, go for it, and if your gut is still jumpy, don't do it.

If it were me, and I had to, I'd definitely sign up for that "insurance" or just not do it...unless you can afford to "self-insure". The fact that such insurance exists, pretty much spells out the risks, no?

[Dave07997S]

I almost let my 07 997S go via Swaplease. As the OP stated PFS will not release the original lessor from the lease...so I kept it, still got it

Dave

[lakerholic]

Swapalease offers an insurance program to cover the payments in case the assuming party defaults.

This plan was implemented specifically for instances where the Lessor will not let the Lessee "off the hook" so to speak and just adds a 3rd party to the lease. You should contact Swapalease... the cost is based on the # of months remaining on the lease and the monthly payment.... should be somewhere in the neighborhood of $1500-$2000 (maybe more depending on payment).

I only know about this because a friend of mine got out of his Audi Q7 lease using Swapalease and their insurance plan to protect himself.

Good luck

-Eddie