What is the lease take-over process ?

Many have incorrect ideas about long term car leases, and that results in misguided thoughts of the car lease. Even if the lease is for 24, 36 or 48 months, at the end of the lease, the balance is not at 0. The balance at the end of the lease is the residual value of the vehicle (this amount is an evaluation of the future value of the vehicle by the dealership). Therefore, since the balance at the end of the lease is the residual value and not zero, your monthly installments are smaller. At the end of the lease, the person who rents has to pay the balance left (residual value of the vehicle) by one of these two ways: by buying the car r returning it.

The car lease is similar to a mortgage based on 25 years, with a 5 years expiry. After 5 years, le balance is not at zero, but you renegotiate the mortgage.

So why get a vehicle through a lease transfer? It is simply because the lease transfer gets you smaller monthly installments of a new car, but also allows you to lease the car for a shorter term, and possibly get a monetary incentive from the person leasing the car.