GM made the changes "to better support our GM dealers through the current economic environment and the challenges they're encountering sourcing quality pre-owned vehicles," the automaker told Automotive News. "Our goal is to make sure our dealers have access to quality preowned Honda and Acura vehicles to satisfy the needs of new and returning customers," American Honda Finance Corporation said in a statement provided to CNET. GM's and Honda's policy changes were instigated by the chip shortage and other factors that are limiting new vehicle supply, with Honda specifically mentioning "global parts supply issues and congestion at various ports." The automakers say that preventing lessees from selling their vehicles to a company like Carvana or to a dealer representing another brand will mean their own dealers are more likely to have vehicles to sell during this time of strong demand. Toyota told Automotive News that it is reviewing its leased vehicles policy and Ford said it has not accepted co-called "third-party lease returns" for years. Both companies said they will keep the policy in place through the end of 2021. GM's change started on the first of July, and Honda soon followed suit. sales and credit for GM Financial wrote to GM dealers recently, according to Automotive News. by contacting GM Financial Customer Experience or working with a participating GM dealership," Joe Bartuch, executive vice president of U.S. GM lessees "are only able to submit a lease purchase request. Once they’re all signed and any transfer fees paid, the deal is done.Looking to Buy or Lease? A Word of Advice The buyer will have to go through various credit checks before the transfer is confirmed and then documents will be sent out to both buyer and seller. The buyer may also ask you to split any lease transfer fees so be prepared to negotiate. How much you decide on will depend on how quickly you’re keen to break the lease and what you think is a sensible offer based on the condition of your car, mileage, service records etc. They may ask you various questions such as whether you can negotiate a cash incentive in order to bring down the cost of the lease.
There are firms out there who can organise a lease swap for you so compare as many as you can and check their fees (such as advertising the lease for instance) and services. It’s also worth checking with the lease provider if there are any transfer costs that could be incurred. There may also be a prepayment penalty fee so make sure you do all the maths first to see what is most financially viable. This amount is usually substantial and equivalent to making all the lease payments at once. The amount owed will be the difference between the early termination payoff stated on the lease agreement and the amount credited for the vehicle so far. You’ll also need to find out what the early termination payoff and prepayment penalty amounts are. If that’s the case, then terminating the lease is a safer option.
You’ll need to check with your lease provider whether a transfer is permitted and whether you’d still hold any responsibility for the payments after the transfer has been agreed. The benefit for the person receiving the car with the transferred lease is that they can get an almost new vehicle at a lower cost with no downpayment as all the upfront costs have been covered. However, consumers can sometimes escape their lease and effectively pass it on to someone else, a trend which is particularly popular in the US and on the rise here.Ī lease transfer is when you wish to exit the terms of your lease and rather than terminate your contract and pay the fees, you transfer it over to someone else who carries on paying the monthly payments. Because vehicle lease terms are typically two to four years, there are several circumstances that could arise (such as becoming pregnant, relocating, being made redundant etc) that could result in you wanting to break that lease but are worried about facing the costly penalties from leasing companies. Sometimes things crop up in life which scupper long-term plans, no matter how well thought out.