All true leases contain an assumption clause whereby another qualified party can take over all of your remaining obligations under contract. This legal tool can be used to dispose of a lease at any month during the original term. There is a $300.00 fee that is usually paid for by the new driver. Our office sets up and processes the transaction for you.
This is a legal assumption clause, not a ‘straw-purchase’ or a sub-lease. All parties know and approve of the transaction. You will be removed from all obligation and the new driver will assume full obligation for the remainder of the contract.
How this is possible when it cannot be done with a financed vehicle: It is illegal to drive, own, make payments on, get insurance on, or have a side contract on a vehicle financed in another persons name. For financing, the title has to be changed and all liens satisfied. A new loan has to be written and more interest and taxes are incurred.
Unlike finance contracts, the title on a leased vehicle is made out in the name of the lessor so the title does not change. The new driver is simply sent an assumption contract and no new taxes or interest is incurred.
You may want to use this option if at the time your lease payoff is greater than your car value. You would not want to use an assumption if you have equity in your leased vehicle.
If you are contemplating using assumption as a risk-management tool for early termination on a long term-lease, please read these guidelines for the best look-ahead results:
1. We will help you by advertising, selling, and processing your lease-assumption in the future. We charge $59 for that service to cover the cost of advertising and documentation.
2. Your vehicle becomes part of a list and is compared to client requests waiting for assumptions.
3. Preplan your assumption to make it attractive to the new driver by then offering an attractive payment on what will be a short-term, take-over true lease.
4. Do not put money down on a vehicle you plan to have assumed.
5. Plan to put your lease up for assumption before the end of the year model-run, before a new body is produced for that model, and before the end of the calendar year if possible.
6. Know how many miles will be on your vehicle and how many contractual miles are left when you plan to have your lease assumed.
7. Know that successful assumption can be performed quicker if you increase the available market by offering a lease with remaining value.
We accept trade-ins on virtual deals to help clients dispose of them. It is our job to establish the highest value for each trade.
A trade vehicle is converted to an amount of money in a virtual sale. An honest depiction of your trade condition is requested when you apply for information from us. An accurate payoff amount is also necessary before a quotation can be prepared. All quotations with a trade are subject to a physical trade appraisal at time of delivery.
Georgia is a trade-difference State, which allows dealers to mark up the price of the car they are selling to over allow for a trade-in on paper. We will not do that because of the deception involved and the bottom-line is the same anyway.
Virtual Trade Value – During the quoting process, the wholesale book value is used, rated by the condition you selected on you request form, supplemented with ‘cash calls’ to expert buyers of the year, make, and model of your trade-in. If you have been accurate in your trade description, you can expect the quotation value to be right on target.
Actual Cash Value – Any difference shown by a subsequent physical trade appraisal will affect your transaction in the true amount. Also, a local CaxMax Superstore will give you an independent written appraisal.
Retail Trade Selling Service – We also offer to advertise and pre-sell your trade for a retail/higher value if it qualifies for a true lease with a prime lender. This service can be very helpful in situations of extreme inequity. There is an up-front cost to cover advertising and process requests for information. There is a sales commission charged for successful transactions. This service is only available to clients committed to purchasing or leasing a vehicle with us as soon as the trade is sold.
Trade Equity – When the trade value is established and compared to the payoff if any, only three things can happen. Either you have a zero balance, you have equity or more often, you have inequity.
If you have equity in your trade you can use it against the purchase price of the vehicle you are getting or have it paid to you in cash.
If you have inequity, you can write a check for it or, as we always suggest, include the amount in your new lease or financing if available. Be advised that it is illegal for a dealer to increase the amount of a trade deficit on a finance or lease contract for monetary gain.
We suggest incorporating any prior trade balances into your next vehicle purchase for your comfort, convenience, and monetary reasons. Any money spent paying off a prior balance should be in a bank earning interest. Also, if your new leased vehicle is assumed in the future, your remaining prior balance will be assumed right with it.