Lease takeover question

[coriolis]

Trying to find information but can't find anything, and with places closed today, can't call neither.

It's for my friend who has needs a car for less then a year, about 6-7 months for his internship this summer. He can't afford to buy a brand new car, but can a used car, though under $10,000. However, he only needs it for half a year for work where he needs to drive about 100km to 300km a day. He has a part time job over the school year, but driving is a luxury(15 min drive to work, or 50 minute bus(has to transfer 3 times)).

He's looking to take over a lease, possibly for less then 18 months, though 7-8 months is ideal. Pretty much he wants a reliable car he can use for his summer internship, which is why he hasn't been looking at used cars. He knows he won't be able to finance/lease a new car since he doesn't have a full time job, nor has a co-signer who does. If he takes over a lease, does he need a co-signer still considering he doesn't have a full time job, nor anyone in his family(been laid off and working part time or still looking atm). I'm assuming the rules would be the same as a new lease, but perhaps there some leeway, since transferring a lease is just in name, insurance and license.

Thanks in advance.

[dlander]

When I did a lease takeover a few years ago they did a credit check but did not ask for proof of income. But it should be the same as for a new lease.

[JAGpilot]

I suggest he try to buy a car that he can keep for several years rather than band-aid solutions of taking leases for a few months. He'll need a car down the road and to me leasing makes no sense since you have nothing at the end.

[MP3_SKY]

I suggest he try to buy a car that he can keep for several years rather than band-aid solutions of taking leases for a few months. He'll need a car down the road and to me leasing makes no sense since you have nothing at the end.

Sub-lease is a not a bad idea to do when OP's friend only needs the car in the summer. His friend is still in school and doing part-time, so he may not have stable income to finance a car for 48/60months.

Buying a used for few k, you have to deal with the break down, repairs, maintenance.

Aslong the car that he is sub-leasing still have good KM left for him to drive and everything is still under warranty, I think it is a good option.

[coriolis]

He wants to buy a brand new car after he graduates(he's in 3rd year, graduates summer of 2010). Pretty much it'll get replaced then.

[lofidelity]

First off, getting a brand new car after graduation is a common bad financial decision. But if your friend is going to do it anyway, Leasebusters is a good idea.

You can get great bargains on lease cars that have almost exceeded their allowed mileage if you don't plan on driving it much.

[Pete_Coach]

While taking over a lease is an option, it may not be a good one. Often folks trying to get rid of a lease are ones who have overdriven the mileage, leaving the takeover person with few miles before they need to pay.
Plus, your friend is going to put on some serious miles 100 to 300 per day. This is not conducive to a leased vehicle. You say he has about $10K, well, he is best off buying a reliable used car (Toyota, Honda, Nissan etc) or, getting a cheap beater now and another later on. There are tons of used cars out there. Lots of lease returns and you should be able to find a very well priced North American brand (even though it is made off shore by one of the improt companies I have mentioned) car quite easily.
When he is ready, then go buy a permanent car.

[f00kie]

As others have pointed out, they do a full credit check on the lease, even for takeover. And don't forget the lease takeover fees, they're huge and absolutely unreasonable at some dealerships.

As for the mileage question and so on, that's not hard to figure out. 8 months = ~170 driving days = 17k-54k km driven. Huge range... so he's going to have to refine that number and look for leases on leasebusters that fit his criteria.

[junior son]

If I find someone to take over my lease am I still on the hook?

[VivienM]

First off, getting a brand new car after graduation is a common bad financial decision.

How is getting a brand new car after graduation any worse than getting a brand new car at any other point in life? Arguably, getting a brand new car is always a stupid financial move...