Hey guys,

I put up my car on leasetrader.com. I have a potential taker, however I called Porsche Financial, and they said even if I transfer the lease, my name will always be on the contract, so if this new person who takes over the lease fails to make the monthly payments, maintain insurance.... I will be responsible. This sounds too risky.

Just wanted to get some feedbacks......

Thanks,

 

"Too risky" is an understatement .

Porsche is basically telling you that the liability falls on the owner . Other car leases have more advanced programs .. Not porsche apparently.

Buying a car outright means that the sale is complete on day one -- but leasing --blech !!!! --It perpetuates having another entity's string attatched to your wallet (with no equity).

What if the new lease individual defaults on a payment ? that's bad enough .
But what if he's in an accident with no insurance ? yikes!!!!!! Even if he has insurance your name (bearing responsibility) is still tied to the car through the contract with porsche.

In my opinion --it's far better to hedge the loss of exiting a lease by either trading it in (upside down) hoping to absorb some of the loss by fusing it into a new car OR via buying the car and selling it .

good luck,

 

they r absolutley right

 

Unfortunately, you take on a risk. I would not do it. Others might have higher risk tolerance. If it was a friend or family member, maybe although some of those risks are even worse!

 

This is correct.

I took over a lease a few years ago. The original lessee still stayed on the lease; porsche just added my name to it.

The guy I took the lease from was understandably nervous. But I am just as worried about my credit score as he was.

The trick is you have to find a trustworthy responsible person. Good luck.

 

they wont do a transfer ? that's strange... I guess two is better than one in their opinion

 

I did this on my first P car.
I was the one who took over a lease. The original lessee stayed on the lease as a back-up in case I defaulted.

Yes there is a risk, but let's not exaggerate that risk. The transferee goes through the same credit check etc. that the transferor went through.

Porsche will not approve the transfer without proof of insurance and correct lienholder/beneficiary assignment.

And as someone else in this thread mentioned: the transferee is as concerned for their credit as the transferor.

All I can say is: it worked out for me. Your mileage may vary.

I have used Leasetrader both to get into and out of leases 4 times now (Volvo, Mini Cooper, Porsche) and never had any problems.

FYI: most manufacturers will NOT remove the original lessee.

 

Great thanks a lot for the inputs....... I think I'll hold off for now!

Thanks!

 

I had someone take over my lease (2007 C2S), but it was with US Bank. They ran a credit check and reissued the lease agreement in the other persons name, a release was issued to me.

I ended up buying out someone's lease (2007 GT3) with PFS. This was a little more complicated as we computed the buyout price and I issued a check to PFS. I had to wait for the title to be issued to the original owner, who turned it over to me.

Maybe you can convince your buyer to buy the car instead of taking over the lease?

 

If your name stays on the documents, don't do it. A serious accident with an ensuing lawsuit can easily exceed any normal insurance coverage and you will be liable. This has little to do with credit, losses for a broken lease are inconsequential compared to an injured party winning a big buck judgment against you.

 

I'd love to hear a lawyer's input on that (somebody with relevant experience on this specific liability subject).

From what I understand, your liability as original lessee is only as pertains to the repayment of the vehicle to the lessor (Porsche Finance).

I would be VERY surprised if you were liable for injuries and damages caused by the second lessee/driver. That does not make any sense.

 

I am on the defense side, but at least in my area of Tennessee, most of the plaintiff guys won't really attempt to levy on personal assets above and beyond any insurance limits unless you have absolutely done something horrible. This is not to say that it can't be done. In this area, I am just saying that it usually is not done.

 

The guy who defaults on a measly lease payments may have also defaulted on his auto insurance as well as his home in forclosure . He's just not homeless --yet!!!

He doesn't even own the car and his name isn't even part of the original lease contract.

So who do you think the accident injury attorney is going to look at next ?

 

I believe you're still missing the point about liability.

As the original lessee, your liability is to the lessor IF the additional lessee defaults.

That has NOTHING to do with accident liability if the additional lessee crashes the car and has no insurance. What makes you think you are liable for the damage caused by the additonal lessee?

Unless you are a lawyer specializing in accident liability, I'll stick to my original position.

The original question was about Leasetrader and the original lessee not being removed from the lease.

I have done this 4 times now without any incident, both as a transferor and as a transferee. Anyone else have a RELEVANT opinion?

 

If you view my opinion as irrelevant it will not stop me from posting my reply because you are not the ONLY person reading this open forum . So it's up to you how to cope . You can ignore my posts .

It does not matter whether or not the reply is from an attorney or not because this is not a legal forum nor a court.

In the very first post it was stated
"even if I transfer the lease, my name will always be on the contract, so if this new person who takes over the lease fails to make the monthly payments, maintain insurance.... I will be responsible"

He is telling us that the onus of responsibility falls on him .

If this isn't good enough for you and that you are content in YOUR decisions then why are you asking for a free legal opinion here rather than taking the actual contracts to a professional who can read the exact specifics and charge you a fraction of what you place at risk in ignorance.