• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Wealth Pilgrim

No Money Worries. No Matter What.

Neal Frankle featured in
  • Home
  • Life Insurance
  • Investing
    • Build Strong Investment Building Blocks To Avoid Going Broke In Retirement
    • Systematic Mutual Fund and ETF Investing
    • Stock Market Investing Guide
    • Choosing the Right Investment Brokerage Guide
    • How Bonds Work Guide
    • How Banks Really Work Guide
    • Annuities – What You Need To Know Before You Invest
    • A Beginners Guide To Buying Individual Stocks
    • Create A Pool Of Great Mutual Funds and ETFs To Pick From To Secure Your Retirement
    • ETF and Index Fund Investment Guide
  • Earn More
  • Banking
  • Retirement Planning
    • Retirement Guide
  • Reviews
    • Upgrade Personal Loans Review
    • Lending Club Review
    • Prosper Review
    • Ally Invest TradeKing Review
    • CIT Bank Review
    • LegalZoom Review
    • Lexington Law Review
    • Airbnb Host Review
    • Should You Drive For Uber?
  • Tax
  • Courses
    • Raise Your Credit Score So You Can Buy a House – Free Video Course

How to Lease a Car Cheap

by Neal Frankle, CFP ®, The article represents the author's opinion. This post may contain affiliate links. Please read our disclosure for more info.

If you want to know how to lease a car cheap, I have good news. You can save a fortune with what I’m about to share with you. I want to go on the record and say that the longer you drive a car, the cheaper it is if you own rather than lease it.

I buy cars and then I run them into the ground – sometimes with the help of my kids. Having said that, if you’re going to lease a car anyway, let’s save you some bucks.

As background, understand that lots of people are unable or uninterested in continuing their car lease. You can turn their desire into huge savings for yourself. This is known as a lease transfer. Here’s how it works:

The current lease holder gives you the car and says goodbye to the down payment he made…but also to the monthly payments. They often do this because they can’t afford the payments any longer. So for the right person, this is a big win.

And for you, it’s an even greater win.

First, you don’t have to come up with the down payment as you would with a lease from a dealership. Second, these transfers are usually much shorter than new car leases. According to Investor’s Business Daily, they typically run only 18 months. If you were leasing a car for such a short duration directly from the dealership, you’d pay a heck of a lot more. This means your monthly budget plan is going to work better.

Sometimes, if the original lessee is in real dire straits, you can negotiate them to agree to pay down the lease so your payments are even lower than the original lease.

In effect, you’re leasing a (slightly) used car and that’s why you’re saving so much. The other guy paid for most of the depreciation, which is a huge plus for you.

There are a few good companies that facilitate these kinds of transfers. You can find them on the web by searching “lease transfer.” These companies do charge fees, but they are nominal compared to the money both parties save.

The only person who doesn’t like this arrangement is the new car salesperson. Boo hoo.

Of course there are downsides to taking over a lease. The car is used, so it would be best to have it checked out and make sure you get a good extended car warranty. Also, check the mileage cap on the lease to make sure you’re not getting a pig in a poke.

In my opinion, this is an excellent option. What say you? Would you take over someone else’s lease? Have you ever done this? What was your experience?

Why those questions are driving around in your head, let’s take a look at the Pilgrim Posts on Parade:

  • Festival of Frugality
  • Carnival of Money Stories
  • The Digerati Life – Should Unemployment Benefits Be Extended?
  • LiveRichly.com – Discoveries from a Southern Road Trip
  • Monevator – No Lost Decade – Why We’re Not Japan – Pilgrim Pick of the Pack
  • Eric – Starting a Small Business
  • Joe Taxpayer – Kiddie Roth
  • Canadian Finance Blog – You can afford retirement, but can you afford retirement care?
  • Evan – Some Past Financial Bubbles
  • When I Approve of Bankruptcy by Mrs. Accountability
  • Darwin’s Money – 10 Dumbest Uses of Your Tax Dollars in Stimulus Bill
  • Car Negotiation Coach – GAP car insurance – do you need it?
  • Costco TrueEarnings: the Best Rewards Card for Well-Rounded Spenders?
  • Good Riddance Annual Fee, Little House and Bliss Box Finale!
  • B Simple – 10 Reasons NOT to Have a Will
  • 4 Professionals You Should Contact When Buying a Home – MH4C
  • Oblivious Investor – Retirement Savings vs. Income Growth
  • 8 things you might not know about your cell phone service – Moolanomy
  • Invest It Wisely – Meet Andrew Hallam: The Millionaire Teacher

 

Tweet
Pin
Share

Reader Interactions

User Generated Content (UGC) Disclosure: Please note that the opinions of the commenters are not necessarily the opinions of this site.

Comments

  1. Johnathan Stein says

    August 6, 2010 at 1:10 PM

    OK, did I miss something, like a link to a “Lease Transfer” site(s)? Or is this something that requires research.

    Reply
  2. Jennifer Barry says

    August 6, 2010 at 10:07 AM

    Thanks for the link Neal! I have never leased a car before. I have saved money by buying a former rental car and inspecting it very carefully. Then I kept it for 9 years.

    Reply
  3. Little House says

    August 6, 2010 at 8:36 AM

    Thanks again Neal for the link!

    Reply
  4. Kevin@InvestItWisely says

    August 6, 2010 at 8:01 AM

    Thanks for the linkback, Neal.

    Reply
  5. Evan says

    August 6, 2010 at 7:55 AM

    I have a buddy that keeps participating in these! He LOVES it! He says he can pick up a fantastic like new car and not be ‘stuck’ with it.

    The problem, he tells me, is that you have to weed through a lot of junk. There are pages upon pages of people trying to get out of their lease becaues they have 100 miles/month left.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Are You Human? * Time limit is exhausted. Please reload CAPTCHA.

Primary Sidebar

Who is Neal Frankle

Neal Frankle

I'm a CERTIFIED FINANCIAL PLANNER™ Professional with more than 25 years of experience. I feel very blessed and hope to share my personal financial experience and professional wisdom with readers of WealthPilgrim.
Read More »

Stay Connected

Facebook Twitter YouTube RSS
We are on YouTube
Retirement financial education for people age 55+ seeking to retire well and for those retired seeking to enjoy a better retirement.  We discuss retirement planning, retirement investments, taxes in retirement, retirement spending, IRA and 401k distributions and we will personally answer questions that you pose in the video comments.

While so much financial information is about preparing for retirement, what about managing your finances in your retirement years? That's exactly what we cover at Retirement Crusaders.

Neal Frankle is a retired registered investment adviser. Larry Klein is a retired financial advisor and retired CPA. They have 70 years of financial advising experience to share so that you have your best retirement years.

Retirement financial education for people age 55+ seeking to retire well and for those retired seeking to enjoy a better retirement. We discuss retirement planning, retirement investments, taxes in retirement, retirement spending, IRA and 401k distributions and we will personally answer questions that you pose in the video comments.

While so much financial information is about preparing for retirement, what about managing your finances in your retirement years? That's exactly what we cover at Retirement Crusaders.

Neal Frankle is a retired registered investment adviser. Larry Klein is a retired financial advisor and retired CPA. They have 70 years of financial advising experience to share so that you have your best retirement years.

YouTube Video UCoU0buhwVplzXrsyf342nOg

Retirement Crusaders

June 10, 2022 12:19 PM

Subscribe
This error message is only visible to WordPress admins

Error 403: Requests from referer are blocked..

Domain code: global
Reason code: forbidden

More Categories

Career Development
College Funding
Credit Cards
Credit Score Fixes
Money and Marriage
Debt Relief
Estate Protection
Property Investment Loans
Small Business Strategies
Spend Less Money
Retirement financial education for people age 55+ seeking to retire well and for those retired seeking to enjoy a better retirement.  We discuss retirement planning, retirement investments, taxes in retirement, retirement spending, IRA and 401k distributions and we will personally answer questions that you pose in the video comments.

While so much financial information is about preparing for retirement, what about managing your finances in your retirement years? That's exactly what we cover at Retirement Crusaders.

Neal Frankle is a retired registered investment adviser. Larry Klein is a retired financial advisor and retired CPA. They have 70 years of financial advising experience to share so that you have your best retirement years.

Retirement financial education for people age 55+ seeking to retire well and for those retired seeking to enjoy a better retirement. We discuss retirement planning, retirement investments, taxes in retirement, retirement spending, IRA and 401k distributions and we will personally answer questions that you pose in the video comments.

While so much financial information is about preparing for retirement, what about managing your finances in your retirement years? That's exactly what we cover at Retirement Crusaders.

Neal Frankle is a retired registered investment adviser. Larry Klein is a retired financial advisor and retired CPA. They have 70 years of financial advising experience to share so that you have your best retirement years.

YouTube Video UCoU0buhwVplzXrsyf342nOg

Retirement Crusaders

June 10, 2022 12:19 PM

Subscribe
This error message is only visible to WordPress admins

Error 403: Requests from referer are blocked..

Domain code: global
Reason code: forbidden

Disclaimer

Wealth Pilgrim is not responsible for and does not endorse any advertising, products or resource available from advertisements on this website. Wealth Pilgrim receives compensation from Google for advertising space on this website, but does not control the advertising selection or content. Please do the appropriate research before participating in any third party offers. The information contained in WealthPilgrim.com is for general information or entertainment purposes only and does not constitute professional financial advice. Please contact an independent financial professional for advice regarding your specific situation. Wealth Pilgrim does not provide investment advisory services and is not a registered investment adviser. Neal may provide advisory services through Wealth Resources Group, a registered investment adviser. Wealth Pilgrim and Wealth Resources Group are affiliated companies. In accordance with FTC guidelines, we state that we have a financial relationship with some of the companies mentioned in this website. This may include receiving payments,access to free products and services for product and service reviews and giveaways. Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.


About · Contact · Disclaimer & Privacy policy

Copyright © Wealth Pilgrim 2023 All Rights Reserved