Buying a car doesn’t have to be a complicated process. There are a range of different payment options available to prospective car owners. Options include:
- Buying a car with an upfront cash payment
- Leasing it on a hire purchase agreement
- Assuming an existing lease (taking over a car payment)
How does this process work?
When people no longer want a particular car, due to a number of various reasons, they may opt to sell their lease to other prospective buyers. This is becoming a popular method of car payment arrangements, mainly because it’s quite a cost-effective solution. There are various online networks and trading hubs which make it easier for people to buy and sell car leases.
A prospective buyer takes on the cost of an existing lease on a vehicle from the person who originally made the purchase agreement. This means that the person taking over the lease assumes responsibility for the rest of the payments on the car.
What are the benefits associated with such an arrangement?
As a prospective buyer, you have a higher possibility of finding a specific kind of used vehicle.
Prospective buyers may also get the chance to test the vehicle for a short period of time.
There’s a higher chance of finding a used car that is still relatively new, as most takeovers are done with no more than two years left on the lease.
If you need a car on a temporary basis, this solution may be ideal for you.
Quite often, sellers are looking to get rid of the financial burden as soon as possible – which is an advantage for you.
What are the disadvantages?
The car may not be in perfect condition, so make sure you have a mechanic look at the vehicle before signing any agreement.
Certain maintenance requirements may also need to be fulfilled in order to preserve the car’s warranty.
As a lease buyer you may also take on the responsibility for the car’s maintenance and any damage to the car that exists at the end of the lease term.