Determine your "Effective" monthly payment after incentives and fees.
Effective Monthly Cost:$0.00
Total Cost to Maturity
$0.00
Total Estimated Savings
$0.00
Cost Per Mile
$0.00
Months per Year
12
Is a Lease Takeover Worth It?
A lease takeover (or lease swap) allows you to assume the remaining term of someone else's auto lease. While the sticker price of the monthly payment is important, the "Effective Cost" tells the real story. By calculating the impact of incentives and transfer fees, you can determine if the deal is actually cheaper than leasing a new car from a dealership.
Key Factors in Your Calculation
Cash Incentives: Current lessees often offer "cash under the table" to get out of their contract quickly. This significantly lowers your monthly obligation.
Transfer Fees: Most leasing companies (like BMW Financial or Ford Credit) charge a fee to transfer the name on the title. Ensure you know who is paying this.
Mileage Allowance: Always divide the remaining miles by the months left. If the original owner was a heavy driver, you might be left with very few miles, risking high overage penalties.
Lease Takeover Example
Imagine a BMW 3 Series with a $500 monthly payment and 10 months left. The seller offers a $1,000 incentive, but you must pay a $500 transfer fee. Your total outlay for the 10 months is $5,000 (payments) + $500 (fee) – $1,000 (incentive) = $4,500. Your Effective Monthly Payment is actually $450.