Sellers guide What is a lease transfer? There is a legal and safe way to get out of your car lease, through the process of a lease transfer. Most leasing companies allow you to transfer your lease to a credit qualified individual without any harm to your credit or endure hefty penalty fees. The credit qualified buyer would continue to pay the remaining monthly payments on the original lease contract. The base monthly payment would remain the same but it would be adjusted for their local/state tax rate. The buyer would be responsible for the original lease terms on the contract (mileage, physical condition, return date and so forth). When the buyer has completed the lease term, they have the right to exercise the options on the contract; they can choose to purchase the car at the lease end buyout value or return the car to the leasing company or the participating dealer. A simple example: James Brown leased a Honda Accord for 36 months from his local dealership. He signed a contract that he would pay $250 a month for 36 months for the right to drive the automobile. He is allowed to drive a total of 36k miles by the end of the lease. At the end of the lease he has the option to purchase the car at it's lease end value of $10,000. After 12 months, James decides to leave the country for a few years for business purpose. Since he has no use for the Honda, he convinces his friend, Bob Harper to take over his remaining 24 months. James calls his leasing company and informs them that he would like Bob to take over his lease. The leasing company runs Bobs credit and approves him. The leasing company forwards James legal documents to sign off his lease. Bob also has to sign legal documents, stating that he would pay for the remaining 24 months, and that he promises to return the vehicle with no more that the original 36,000 miles allowed. In addition, he would be responsible for excessive wear or damages to the vehicle. In return, Bob could legally assume the lease and he has the option to purchase the car at the original lease end value of $10,000. The example above is illustrated to show the general concept of a lease transfer. Each leasing company has its own restrictions and some leasing companies do not allow lease transfers. The process may vary depending on the leasing company. We highly recommend contacting the participating leasing company for details. Next section: The benefits of a lease transfer