What to Ask Before Taking Over Someone's Lease

Taking over someone's lease can be a great deal — short commitment, no down payment from the dealer's lot, often well-equipped cars at a discount. But it also means inheriting whatever issues the original lessee built up. Before you sign anything, work through this list.

The car itself

• Current mileage vs. allowance. Multiply the annual mileage allowance by the elapsed fraction of the lease term. If actual mileage is well above that line, you'll eat the overage at lease-end (typically \$0.20–\$0.30 per mile).
• Service history. Ask for receipts. Skipped scheduled maintenance can void the manufacturer warranty and trigger end-of-lease fees.
• Pre-existing damage. Walk around in person if possible. Anything beyond "normal wear and tear" — door dings, curb-rashed wheels, paint scratches — becomes your problem at the end-of-term inspection.
• Tire condition. The bank requires legally-acceptable tread depth at lease-end. Buying four new tires can run \$800–\$1,500.

The lease contract

• Total remaining payments. Monthly payment × months left = your full obligation. Plus any cash due at signing the seller is asking for, plus the transfer fee.
• Disposition fee. Most leases charge \$300–\$500 when you turn the car back in. That's on you, not the seller.
• Buyout option. Check the residual value. If the car is worth more on the open market than the residual, you have an exit ramp: buy the car and resell it.
• Wear-and-tear language. Read the exact wear-and-tear standards. Some banks (BMW, Mercedes) are reasonable. Some (notably some Japanese captive banks) charge for almost any cosmetic issue.

The bank

• Does the bank allow transfers? Most do — BMW, Mercedes, Honda, Hyundai, Toyota. Some don't — Ford, GM, Tesla, Stellantis. Check your bank's policy.
• Release of liability. Confirm in writing that the original lessee is fully released. Otherwise they're still on the hook if you default.
• Transfer fee responsibility. Who's paying? Usually buyer; sometimes split. Negotiate up front.

The seller

• Why are they transferring? "Job relocation" or "growing family" are normal answers. "Car has problems" is a red flag — ask follow-ups.
• Cash incentive vs. cash due. Run the math: their cash + your monthly payments + transfer fee + disposition fee. Compare to the cost of a new lease on a similar car.

Common questions