Managing Security Deposits during a Car Lease Transfer
Friday, June 19, 2015, 6:00 AM | Leave Comment
It is a common practice to get a car on lease against a security deposit. If you are among those people, but planning to transfer the lease due to some reasons, you should know how to manage the security deposit.
However, the policies of handling any security deposit during a transfer of lease vary from one company to another.
Some companies allow transferring of security deposit to the new lessee while other companies return the security amount to the original lessee and ask for fresh deposit from the person assumed to be the new lessee.
What you need is expert guidance on how to manage your individual leasing situation.
Take a look at some of the important strategies that you can consider for transferring your car lease.
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Read the Contract Carefully
If you want to transfer the lease, then it may not be free of risk or cheap. Therefore, what you need to do is make a provision in advance. By provision, we mean to say that you must be aware about the company’s terms and conditions associated with lease transfer.
Therefore, when you are about to sign the contract read it very carefully to know their policies regarding lease transfer. Some companies do not allow transfer of lease and getting into a contract with such a company means you have to complete the lease term.
If the company allows transfer of lease, then you should check when you would be able to do so. There are finance companies that do not allow the customers to transfer lease in the last or first year of the leasing term.
Therefore, checking all these aspects in the contract is essential before signing the deal. Once you sign the deal and pay the security deposit, it means you have agreed to follow the lease terms.
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Do Not Terminate the Lease, Transfer it
Most leasing companies allow terminating the contract of your lease. However, in most of these cases, they will ask you to pay a huge sum as the penalty, as you have decided to close the contract before the specified time.
You may end up paying thousands of dollars and thus you need to opt for a suitable option like transfer of lease to another party rather terminating it.
However, you have to lookout for a good source that can help you to transfer the lease to another party without the burden of a hefty fine.
You can even get your security deposit back or transfer it to the new lessee according to the rules of the leasing company.
For example, leasequit.com is a good source for transferring the lease before the stated date in the contract.
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Reduce Rate of Interest with Multiple Security Deposits
In most of the contracts of leasing, the amount of security deposit equals to the payment of one month, which is rounded up to the nearest $50.
For example, if your payment for a month is $325, then you have to make $350 as the security deposit.
The leasing companies agree to reduce the rate of interest if you make payments of two or more security deposits that are fully refundable.
The rate of interest is reduced by the leasing companies in such a situation is because the risk is low.
By following the above-mentioned aspects, you can manage your security deposit during a lease transfer in an efficient way.
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