Automotive

Lease Buster Questions, Help Required Please

  • Last Updated:
  • Nov 10th, 2016 8:39 pm
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[OP]
Sr. Member
Oct 26, 2016
512 posts
124 upvotes
Toronto

Lease Buster Questions, Help Required Please

Hi all, I'm in need of a vehicle for short term (~2 years give or take a few months) use. I prefer not to purchase a brand new car and then have to go through the hassle of selling it and taking a loss on depreciation in that short time. So the options that I came up with are:

1) Take over a remaining lease between 24-30 months
2) Buy a cheap beater car and hope it lasts for that time period

I have looked at Lease Busters and I have a few questions. Let's use this ad for example (I just pulled a random ad for exemplar use): http://www.leasebusters.com/en/details.asp?ID=205180

Items for discussion:

1) It states a $1,500 cash incentive. This is paid to whom ever takes over the lease and is used to reduce the monthly payment amount?

2) The monthly payment with taxes included is $329.16. There are 27 months remaining on the lease. Is the total amount paid by whom ever takes over the lease $329.16 x 27 = $8,887.32

3) Are there any other costs to consider from the lease aspect? I'm not referring to maintenance or oil changes, but mainly the actual cost of the lease itself.

4) In this particular ad, there is $0.00 listed for "Original down payment" and "security deposit". In the event that there was a $ value listed for those 2 line items, how do they affect the lease, in particular the person taking over the lease?

5) What additional fees are associated with a lease transfer/take over? Lease transfer fee? Vehicle safety and emissions? New vehicle license plates and sticker? Anything else that I'm missing?

6) Anything else I should pay particular attention to in the lease take over ads?

Sorry that I'm asking these beginner questions. I would like to be best prepared if I go down this route and I don't want any unexpected fees or costs after. Thanks.
9 replies
Deal Addict
Oct 9, 2014
1239 posts
154 upvotes
Mississauga
I will answer your third question by saying if there is no excess wear and tear protection on the car, expect to pay extra for any dings and dents that might've been caused during the time the car is in your possession. This is one of the downsides to Lease Busters due to the fact that you cannot add any more protection packages in addition to what came with the car.
Deal Addict
User avatar
Jul 5, 2011
1413 posts
1162 upvotes
Toronto
I can answer a couple of questions:

The transfer fee depends on the manufacturer - you'd want to discuss this with the listing individual, but I imagine they would end up paying for it. I would estimate $299 - $499 which is charged by the manufacturer itself, and not on the dealer level. There is no safety / etest because the owner of the vehicle is not changing (it will still be the manufacturer). At all manufacturers that I know of, this fee is mandatory and cannot/will not be waived. YMMV.

You will need to submit a credit application and attain credit approval to have the lease transferred into your name.

I would imagine the cash incentive is paid directly to you, as there won't be any way for you to reduce the monthly payment on the lease (they are fixed to the term).

Your calculation for the cost of the lease is correct, but take care to note the condition of the vehicle and get a Car Proof report... if there is any damage at all you will be liable for the costs at the end of the lease.

The "security deposit" is an amount of money held by the lessee through the duration of the lease, to be returned at the termination of the lease. Ie. if the guy had left $5000 security deposit, you would be entitled to that money paid directly to you at the end of the lease.

Don't apologize for the questions, after all that is the purpose of this sub!
2013 Wins - $1320 - Woohoo!
Deal Guru
User avatar
Jul 12, 2003
10611 posts
2929 upvotes
Toronto
1. $1500 incentives goes to you.

2. Assume 327.16 is what the current lessee is paying with tax, then yes. Remaining months X monthly payments.

3. Like other mentioned, you may be responsible to the wear and tear (dings, deep scratches, bald tires, etc). Toward the end of the lease, the company will send someone to inspect the vehicle.

4. if the original lessee put a down payment on the car, it is just a bonus for you, the original lessee just wanted to lower his monthly payments. unless he is asking to get part of the money from you, otherwise, there is no impact to you and to your payments. If there is a security deposit, then the lessee may ask you to give it back to him from your pocket now and you will get it back once the lease is end. If the lessee not asking you to repay him the security deposit, that is a bonus for u.

5. There will be a lease transfer fee and dealer admin fee, first one is charge by the Financing company, 2nd one is charge by the dealership to do the paperwork for you. You may negotiate with the lessee and ask him to pay for it. He will if he is despite to get rid of the lease. You have to pass the credit report from the finance company in order to transfer the lease to your name. Other fee is standard as like you getting any cars elsewhere.

6. If you want to be cautious, take the car to do an inspection, make sure the lessee didn't screw up the car and then hand over to you. Generally, if the car is only few years old, not much problems. I would at least ask to the service record to make sure the car is maintained properly.
Retired Forum Moderator February 2009 - June 2015
Jr. Member
Apr 25, 2016
136 posts
45 upvotes
Ontario
I suggest leasing a new vehicle or 30 months if possible because:

1) The manufacturer's warranty (on most components) will be expired, unless it's a Kia, Hyundai, etc., for the duration of the term you're taking over the lease.
2) Tires & brakes will need to be replaced
3) Dents, paint chips and the like will need to be fixed if they exceed the acceptable wear & tear.

You may disregard this post if the leased vehicle you're interested in has Wear & Tear Protection and Extended Warranty.
Last edited by Honda30 on Nov 10th, 2016 5:16 pm, edited 1 time in total.
Deal Addict
Dec 30, 2007
1005 posts
186 upvotes
Ottawa, ON
Take some time to look at the rates you'd pay to lease a new vehicle. A 2017 Civic Sedan LX can be leased for 24 months for $414.52 per month; or check your local dealers for any 2016's they may have remaining on the lot as they'd have incentive to move those.
Deal Guru
User avatar
Jul 12, 2003
10611 posts
2929 upvotes
Toronto
Right, this Civic leased for 60 months. Warranty may not cover til then. Search for one that the entire lease term are cover under warranty.
The car is 2013, tires, brakes may due to replace after 1 year or so...You don't want to replace those when you have only 1 year left on the lease.
Retired Forum Moderator February 2009 - June 2015
[OP]
Sr. Member
Oct 26, 2016
512 posts
124 upvotes
Toronto
Thanks for helping to answer the questions and give a better understanding of the process and terms. I'm really looking for something around $200 per month tax in.

I know in August there was the Hyundai Elantra lease deal and there was another recent one last month October for leasing the Elantra from Thornhill Hyundai as well.

A brand new 36 month or even lease take over at 36 months may be more than I need. 2 years would be ideal but I'm having trouble finding good ones at $200 tax in per month on 2 years term.

Cheaper the insurance the better.
Deal Expert
User avatar
Jul 22, 2006
21817 posts
2458 upvotes
nestleman wrote: Thanks for helping to answer the questions and give a better understanding of the process and terms. I'm really looking for something around $200 per month tax in.

I know in August there was the Hyundai Elantra lease deal and there was another recent one last month October for leasing the Elantra from Thornhill Hyundai as well.

A brand new 36 month or even lease take over at 36 months may be more than I need. 2 years would be ideal but I'm having trouble finding good ones at $200 tax in per month on 2 years term.

Cheaper the insurance the better.
Just wait and try searching for "lesser known" models... But my overall opinion is that taking over a lease just doesn't make sense UNLESS you aren't in a hurry .

I used them and got a wicked deal on a Scion IQ and this year I returned it and got good deal on a 2016 Toyota Corolla.
[OP]
Sr. Member
Oct 26, 2016
512 posts
124 upvotes
Toronto
george__ wrote: Just wait and try searching for "lesser known" models... But my overall opinion is that taking over a lease just doesn't make sense UNLESS you aren't in a hurry .
I'm not in a hurry per say. I will soon need my own vehicle and I can't insure my motorcycle on it's own. It has to be coupled with an auto insurance policy.

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