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Motorists, seeking to get out of car leases, turn to Internet


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by Russ Wiles - Oct. 30, 2009 12:00 AM
The Arizona Republic

In a tough economy

, a lot of people are finding that they can’t afford the payments on cars they have leased, while other motorists sense that now’s a time to hunt for better deals on late-model vehicles. In either case, Internet-based lease-swapping services can help.

The sites offer options for motorists seeking to get out of their leases early without hurting their credit or paying high termination penalties. They do that by making it easier to find someone else who’s willing to assume the lease obligation for the remainder of the term.

Scottsdale resident Steve Earnhart used a site called LeaseTrade.com to obtain a 2007 Infiniti M35 late last year.

The process took about a month, including having the car transported from California, for which he footed the bill.

Earnhart said two of his friends and a relative also had good experiences with LeaseTrade.com.

He said he paid $30 to join LeaseTrade.com, plus a $150 transfer fee and about $300 to transport the car. He took over a payment of nearly $500 a month, lasting for roughly 2 1/2 years.

“It was extremely easy,” Earnhart said.

The company expects to handle about 60,000 lease transactions nationally this year, up from about 45,000 in 2008.

On average, leases have a remaining payment balance of $9,260 nationally and $10,345 in Arizona.

“This tells us that people in Arizona have a higher balance on their car lease contract, meaning they’re trying to get out of the lease earlier on in their contract terms,” said Evan Sneider, public-relations manager for the privately held California firm.

Rival Internet sites include swapalease.com and carleasedepot.com.

On average, the leases available through LeaseTrade.com run for 15 remaining months nationally and 18 months in Arizona - another indication that motorists here aren’t holding on for as long.

People seeking to assume a lease should realize that this requires the consent of the leasing company. The firm might charge a modest fee, will check an applicant’s credit and doesn’t have to agree to a transfer.

Sellers should recognize that they likely will need to advertise their autos. LeaseTrade, for example, offers ad prices ranging from $59 to $99.

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