The purpose of this article is to help you think and understand one of the most challenging aspects of transferring your car while doing a Lease Takeover: the timing factor. As somehow you may found yourself on a specific scenario, there are multiple "mainstream" cases where you can feel identified with, so I'll try to cover a nice example of each one of these.
Time is Money
Yes, it is. "Time is money" and there is no ambiguity on this case. The need of doing a Lease Takeover is 9 over 10 times, the result of a money/time factor. Just see the following examples:
Upsizing: i.e., A new baby is on the way
We can plan and schedule things related to pregnancy/adoption, or any way of the family grow in different ways, but it is a "somewhat predictable" scenario. We know that in X months, we will need more space for the stroller, the baby seat or just an extra seat we don't have now.
Although we know we still are, let's say, five months ahead, we have no guarantee that the vehicle change will occur before that date. This is where you need to think carefully, how much will it cost you not having transferred your contract then and having signed over the next one. This is why, under these scenarios, it is crucial to evaluate having a cash incentive, that averages 2 - 4 months worth of payments.
Recover Money: You did an initial downpayment
There are multiple ways of signing a lease contract. While most cases are with a $0 down payment, I've seen some with 15k - 20k of money down that reduce the monthly amount to a meager sum. This means that the monthly payment isn't a big of a deal for you (regarding the rush for transferring), as it is low, compared to the average lease.
These are among the top deals at our marketplace. But, while not the most popular, the number of inquiries received are enormous, and the person who listed the vehicle is intended to recover part of that downpayment back most of the times. This scenario is the opposite of the one previously mentioned: instead of you paying for someone to take over your contract, the interested person will pay you to take over your lease.
So, unless you are willing just to let it go, it is a good and fair opportunity to reach an agreement that seems reasonable for both parties involved.
On average, between 40% - 60% of the downpayment can be recovered for initial deposits between 10k - 20k. For lower ones, between 5k - 8k, about 30% and for low down payments (under the 4k), sporadic cases get it back. These just use it as an incentive and offer no cash for completing the transfer.
Rush: You need to do it ASAP
While this can classify in multiple other scenarios, a rush is probably the #1 scenario we see. And it is OK. The day you decide to transfer your car, you are willing to do it either in two weeks from now that in 20 minutes.
Here is where people need to be objective and understand one simple thing: What would make someone rush to take over my contract today? What can I offer that I can make someone be interested in my contract today?
That is the key all over the lease takeover stuff. It is the quality of the deal you have. "The car is a weird special edition," "the payment is great," "there are tons of Km left"... many reasons can make your deal attractive for a specific group of people. But if you want to make it fast, there is only one way you can get onboard as many potential clients as possible: cash.
The cash incentive is the way to "standardize" across all your audience, the quality of your deal. And, as I mentioned before, if you are in a rush, you have to be willing to pay for a fast transfer.
So, if you really want to speed up and complete the takeover of your car ASAP, assume the value that time represents for you and that you will be OK to afford.
Otherwise, just wait, but remember that weeks/months keep coming, and so the payments. So always do your math.
