There are various ways to break a auto lease early in Canada but the most affordable option is to perform a lease takeover. In this process, the lease obligation is transferred from the current lessee to a new lessee, similar to subletting the vehicle. The new lessee will bear the financial responsibilities for the lease until it expires or if the lease is transferred again. Such procedure allows drivers to break a auto lease at minimal cost and spares the original driver hefty costs normally associated with an early lease termination.
1. The first step in a lease transfer is to advertise your vehicle to other drivers potentially interested automobile leasing. In order to attract the ideal buyer, there are services specialising in auto lease classifieds that provide you a targeted audience, namely those interested and aware of auto leasing. Such services also differ from typical automobile sales classifieds in that they accomodate a lot information for those assuming the auto lease such as residual value, lease expiration, or KM limit. All this information provides buyers all the information before contacting you. They are normally very serious and ready for the lease takeover when they contact you.
2. When listing your lease takeover gather your lease contract which will contain all the particulars pertinent to your automobile lease. Input all the details for your listing. Providing a cash incentive to the new driver should be considered to increase interest to the lease.
3. Interested buyers for a lease assumption of your vehicle will contact you. Arrangements can be made for a viewing and discussion of further financial details. Once a auto lease transfer is confirmed, you shall notify your financial company for transfer procedures.
4. The buyer will then make a credit application to the finance company. The signing of the lease transfer contract will take place after the buyer has been approved for credit. After the signing of the transfer, your obligation to the lease will be transferred to the buyer thus enabling him/her to enjoy a short term lease.