Assuming a lease off someone else

[greenapples]

I'm planning on assuming a lease from someone with a 2005 Pontiac Wave.

Anyone know the procedures? Will I have to pay any taxes? Will I need insurance right away, and which insurance company is the best for students?

The seller has offered to pay the transfer fee plus an incentive of $1,200.

[FastFokker]

YOU MUST check insurance before taking over the lease. Do not sign before you know what you are going to be force to pay to insure the vehicle, it may be more than you anticipated.

Points to Discuss with Seller

1. VIN to ensure the car corresponds with the lease contract.
2. The condition of the vehicle. Need to note this because the new lessee will be responsible for excess wear and tear at lease end. Examine for dings, scratches, rips in seats, or window cracks.
3. Know the current KM so you understand how many KM are remaining.
4. Exact payment and conditions.

[Pete_Coach]

Check with the leasing company.
They have to approve you. You can't take over the lease unless the leasing company thinks you are as good risk. Remember that you are basically renting the car from them.
Also they will charge you a fee to make the changes.
You will need a letter from them before you can go to the MTO and make the changes of the registration. MTO won't just let this change happen because it is not your (or the other guy's) car.
It is a bigger deal than one thinks. Sometimes you can get the dealer to do this for you and it is lless hassle...but they will also charge a fee.

[greenapples]

Pete, I already mentioned that the seller is paying for all the transfer fees (~$450). I've already been pre-approved by GMAC for a car with MSRP up to $35,000.

FastFolker, thanks. I just called the insurance company (Meloche Monnex), and the insurance for this car will be $2099 per year. She said that the insurance will be effective when I get the car.

I've already had a test drive with the car, and searched high and low for any dents/scratches .. there were none. There are currently less than 4000 kms on it.

[Audiogenic]

Believe it or not, if you take over a car lease from someone else even with the lendor transfer fees paid and a lendor lease takeover release signed, the original leassor is still LEGALLY liable for the remaining payments on the car in a court of law if the new leassor doesn't pay them up monthly. No one tells you this so beware if you are giving up a car lease.

greenaples,
Make sure you see a copy of all of the car's service records of maintenance BEFORE you take it over. You may be surprised to know they haven't kept up the service on it and if it isn't under warranty anymore or close to, you will face any future consequences if the car has problems.

[alanbrenton]

Believe it or not, if you take over a car lease from someone else even with the lendor transfer fees paid and a lendor lease takeover release signed, the original leassor is still LEGALLY liable for the remaining payments on the car in a court of law if the new leassor doesn't pay them up monthly. No one tells you this so beware if you are giving up a car lease.

greenaples,
Make sure you see a copy of all of the car's service records of maintenance BEFORE you take it over. You may be surprised to know they haven't kept up the service on it and if it isn't under warranty anymore or close to, you will face any future consequences if the car has problems.

Hi Audiogenic, does this hold true to date -> original lessor can be held liable? Or are there two types of lease take over contracts? 1) original lessor off the hook 2) otherwise?

[Audiogenic]

Hi Audiogenic, does this hold true to date -> original lessor can be held liable? Or are there two types of lease take over contracts? 1) original lessor off the hook 2) otherwise?

Yes it still holds true in a court of law.