Vehicle lease swapping market booms amid COVID-19 pandemic
With coronavirus keeping many of us off the roads and in many cases out of a job, those with pricey leases are wanting to get rid of the financial obligation.
You might be thinking now is the wrong time to take on a car lease, but with so many looking to unload their own lease, it might make sense.
Often times, returning the car involves paying the dealership thousands of dollars.
To offset the costs, the lease swapping market was born and is thriving.
In fact, one company, Swap-A-Lease, is seeing a 71% increase in lease holders looking to get out of a lease.
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Often times, luxury cars are the ones being leased, and a driver can often take over a lease without upfront costs.
The vast majority of these cars are under warranty.
For those willing to take on a lease, there are other reasons to consider swapping, including shorter leasing periods, lower upfront costs and even cash back.
"It is not uncommon for someone taking over a short term lease to also walk away with some cash," Scott Hall with Swap-A-Lease said. "It's not uncommon for...the [seller] of the lease to already go to the car dealership or talk to a leasing company and realize they are significantly underwater or upside down nearly. In other words, they owe more on that vehicle than what it is currently worth."
The average lease available is about 36 months, so leasing may make more sense for those who like to change cars frequently.
Before taking on a lease, be sure to read the original terms so you know how many miles you can drive without going over and how much the end of the lease will cost you.
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