Car-lease glossary

What is a car lease transfer?

A lease transfer (or lease assumption) moves the rest of your lease — payments, mileage allowance, and end-of-term obligations — to someone else. It's often the cheapest way to get out of a lease early because it avoids the early-termination penalty. Marketplaces like Swapalease and LeaseTrader exist to match people who want out with people who want in.

Why it matters

If your circumstances change, a transfer can save you thousands versus early termination. But the fine print matters: if the leasing company holds you 'secondarily liable,' you can still be on the hook if the new driver stops paying.

What dealers don't tell you

A transfer is usually far cheaper than the early-termination penalty.
You may remain partially liable even after the lease is 'transferred.'
Some brands (e.g. certain captive lenders) prohibit assumptions entirely.

How to negotiate it

Ask your leasing company whether transfers are allowed and whether liability fully releases.
Compare the transfer fee against the early-termination formula before deciding.
Get a full liability release in writing when you hand off the lease.

Worked example

Suppose ending your lease early would cost a $4,200 early-termination charge. A transfer with a $595 assumption fee (sometimes shared with the incoming driver) gets you out for a fraction of that — saving roughly $3,600 — provided the leasing company releases you from liability.

"Lease assumption fee: $595. Original lessee remains secondarily liable for the remaining term."

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Frequently asked questions

Am I still responsible after transferring my lease?

It depends on the contract. Some leasing companies fully release you; others keep you 'secondarily liable,' meaning you can be pursued if the new lessee defaults. Always get the release terms in writing.

Is a lease transfer cheaper than ending the lease early?

Almost always. A transfer usually costs only an assumption fee, while early termination can cost thousands. It's the first exit option worth checking.