A muscle car can provide a variety of uses. Aside from its luxurious and classic appearance, a muscle car also has a very powerful engine. This car offers speed that you can’t experience from other car models. If you’re looking forward to driving around a muscle car, but don`t have enough money in buying a brand new one, taking over a lease might be a suitable option for you. There are now companies for lease takeover, such as LeaseCosts Canada Inc, that offer this kind of service.
What Do You Know About A Lease Takeover?
Because not everyone can afford to buy a muscle car from an auto dealership, a lot of people are now looking for strategies to help them own one at a fraction of its original price. If you’re one of them, taking over a muscle car lease might be appropriate.
In its simplest sense, a car lease takeover is a process that involves a lease transfer – from the original lessee (seller) to you (buyer). A car lease takeover can happen because the original lessee might no longer afford to pay the car and wants to get out of the lease as fast as possible.
As the buyer, to be involved in this type of agreement can also benefit you. This agreement allows you to inherit the pre-existing conditions stipulated in the lease contract and drive home a good car. If the original lessee paid a big down payment at the start of the lease, you’d be able to enjoy cheap payment schemes throughout the entire duration of the lease. As long as you pay careful attention to the current condition of the muscle car, the terms offered by the original lessee, and clauses in the leasing contract, a lease takeover can be the cheapest way for you to finally own a muscle car.
If you want to make the most out of a muscle car lease takeover, it’s best if you took the time to know some basic terms, such as:
- Terms: This is the timeline stated in the leasing contract, which is currently followed by the original lessee. Once you decide to take over the lease as the buyer, you`re expected to follow the remaining part of the terms. Any terms or clauses that are unclear to you should be raised to the original lessee before you take over the lease.
- Residual value: This is the value that the muscle car will have at the end of the leasing term. Generally, a leasing company will determine the value of the muscle car when it was brand new. The amount they come up with is the amount you’re expected to pay at the end of the term, if you wish to keep the car by that time.
To ensure that taking over a lease will not become the reason for any legal repercussions, check the contract if it allows the return of the car or its purchase.
- Market value: The market value is the private resale value. The market value of the muscle car can be lower or higher than the residual value.
- Transfer fee: When the original lessee transfers the lease to you, expect that there are several fees involved during the process. This can include fees for notarization and acquisition of other documents required by the original lessee.
What Are The Benefits Of A Lease Takeover?
Although a lease takeover might seem like a new process for some, it’s actually an agreement that can provide benefits to both the buyer and the seller. For the seller, a lease takeover allows them to get out from a long-term leasing agreement. While for the buyer, this can help them own a muscle car without the need to pay a large amount of money or complying with a lot of documents. To paint a clearer picture of how a lease takeover works, check out this video: .
If you’re planning to take over a muscle car lease soon, it’s best if you know what to expect. The more you know, the easier it’ll be for you to manage your expectations and change your budget to make timely payments as a buyer.
Here are some of the benefits you can experience when you take over a muscle car lease:
1. You Can Enjoy A Good Car At A Less Price
The price of the car is one of the most common reasons why people fail to buy one. No matter how much they want to enjoy the convenience of owning a car for personal or business use, they can’t because they don’t have enough money to buy one.
You don’t have to worry about the same problem once you decide to take over a muscle car lease. This agreement allows you to enjoy a good car at a fraction of its original price.
Aside from taking over a lease, many will think that they can still own a muscle car for a lesser price by looking for a used car dealership. A lot of people will immediately look for a dealership or a private party who sells second-hand cars. The price of a used car might be lower than buying a brand new car, but the former will still require you to shell out a large amount of money upfront. You have no choice but to pay the full amount of the used car before driving it home. If you don’t have enough money to pay for the car, you’ll be forced to take out loans or borrow money from people you know.
It`ll be a different situation when you decide to take over a muscle car lease. Because the original lessee already made most of the payment of the car, you’ll be required to pay a very minimal amount for the lease. Taking over a muscle car lease will not require you to produce a bulk of money. Depending on the leasing contract, you’re only expected to pay a certain amount of money during a specific time span. With this arrangement, it’ll be easy for you to manage your finances better and avoid having any kind of debt.
2. You Don’t Have To Pay Any Down Payment
Before you can own the car of your dreams, you’ll have to visit an auto dealership in your area, talk to a sales rep and let them know what kind of car you’re looking for. However, before you can drive home the car, you need to pay its down payment first.
Depending on the car you want to own, you might have to pay a few hundred or thousands of dollars for the car. If you don’t have enough money to pay for the down payment, there’s no way you can drive home the car. Taking over a lease will save you from going through this entire process.
When you take over a muscle car lease, you don’t have to worry about taking out several loans or borrowing money from other people just to afford the down payment. The original lessee already paid the down payment required by the car, and as a buyer, you`ll only have to make monthly payments. This payment scheme will not create any pressure in your finances, which allows you to continue living your lifestyle or still save money even when paying for a car.
3. Your Credit Score Isn’t A Requirement
There are several financing options if you really want to own a brand new car. Aside from the financing options offered by dealerships, you can also avail from banks and other financial institutions. These entities will usually allow you to take out a loan and borrow money so you can pay your dream car in full amount. However, applying for any of these car loans isn’t easy.
Aside from the number of requirements it’ll require from you, they`ll also conduct a background check and assess your credit score. If your credit score is below average, it’ll be hard for you to qualify for any of these car loans. A bad credit score usually means that you’re unable to meet your financial responsibilities, and the same would happen once you take out another loan.
When you take over a lease, you don’t have to worry about having a below average or bad credit score. Because the bulk of the payment was already made by the original lessee, your financial responsibility as a buyer will be lesser. You`ll only be required to pay a small amount, which means that the original lessee won’t expect too much from your credit score. More often than not, the original lessee will only look at your financial status at the time when you decided to take over the lease.
4. You’ll Be Provided With Several Incentives
There are a lot of reasons why original lessees decide to get out of their leasing agreements. While some do it purely because of financial reasons, others are doing it in order to improve their credit scores.
But aside from scoring a good muscle car at a cheaper price, are you aware that taking over a lease also allows you to enjoy several incentives? Some sellers want to get out of their lease agreement as fast as possible, which is why they`re offering incentives to individuals who are planning to take over their lease.
As long as you take the time to scout for options, you’ll likely find a seller who`ll give you an incentive just because you’re taking out a lease from them. Going into an agreement like this is like hitting two birds with one stone!
5. You’ll Have Better Options
As mentioned, you can always buy a cheap muscle car from used car dealerships. Businesses and private parties usually sell second-hand cars that they`ve used for years. Although these entities sell cheap cars, the used cars they sell has a limited variety.
When you visit a used dealership, expect that you’ll only get to choose cars that were used for at least five years. An older car can usually mean more expensive repairs and maintenance in the future. Buying a cheap used car from a dealership, which will require a lot of expenses in the long run, isn’t really a smart investment. If you want to own a muscle car that`s cheap and still recent, taking over a lease is a better option for you.
When you take over a lease, you’ll be able to enjoy muscle cars that are only about one to two years old. Since these types of cars are relatively new than a used car, you’ll have lesser expenses when you own the former. Taking over a muscle car lease can mean more savings in the long run. Plus, taking over a lease can help avoid paying for a lemon or a muscle car that has any underlying issues.
6. The Bulk Of Depreciation Has Already Occurred
In case you didn’t know, a car depreciates easily. Its value changes the moment you drive it out of the lot. If you bought a brand new car that costs $20,000, it would only be worth around $17,800 after a few hours. That’s because the value of a new car can drop by 11% once you drive it home.
When you choose to take over a lease, bulk of the car’s depreciation already occurred, which means that it can no longer lose value. In fact, once you’re able to take over a lease of a car in good condition and actually exert time and effort in upgrading or maintaining it, you’ll even gain value in the future. This will make it very easy for you to earn a profit from reselling the car.
Be Ready To Commit
Although taking over a muscle car lease can help you save money, keep in mind that it`ll also require responsibility. You should tweak your budget and make timely payments to ensure that this lease will not become the reason for your financial turmoil. After all, driving around a muscle car around town but experiencing debt and bankruptcy isn’t something you want to experience, right?