GUIDE FOR LEASE TRANSFER

Transcription

1 GUIDE FOR LEASE TRANSFER

2 Table of Contents GUIDE FOR LEASE TRANSFER What we offer you... 4 Improving your lease tranfer offer Preparing your vehicle... 7 Negotiating with your car dealership Negotiating with a potential lessee What you need to do when you reach an agreement

3 GUIDE TO LEASE TRANSFER First of all, we want to thank you for using our service. As pioneers of the concept of lease transfers in Quebec since 2003, we have helped thousands of customers dispose of their leases. Yours will be next. Because it takes time and requires specific knowledge, disposing of a lease has the potential to be a complex, frustrating, and even distressing experience. With our services, however, the process is greatly simplified. Strong with the knowledge and experience gained during more than 40 years in the field of leasing and auto financing, we have created a special guide to help you through each step of a lease transfer. By reading this guide carefully, you will discover that it is possible to transfer your lease in a simple and fair way for both parties. A sincere thank you to all our clients, ByeByeBail.ca A division of the ALBI le Géant group

4 What we offer you Expertise and visibility Our expertise in the field of car leasing will save you time and money. With our visibility on many Web search engines, your lease will be available each month to thousands of potential customers. Your vehicle will be posted on our two ByeByeBail.ca and ByeByeLease.ca websites. Easy changes to your ad If you want to make changes to your ad, it is possible to do it directly from your account from the My Account section. Guide for lease transfer This guide should be consulted for an easy and successful lease transfer. Besides suggestions, tips and some pitfalls to avoid, it tells you all you need to do and how to do it well to facilitate the transaction.

5 Improving your lease takeover offer Identifying the strengths and weaknesses of your lease and establishing the premium offer for its transfer are two important steps to ensure that your lease becomes more attractive to potential buyers. What may seem like a good deal for you does not necessarily represent a gain to others. Some people wish to rent a car for a shorter period than the conventional lease term; for them, a 48-month lease is less suited to their needs while a lease for 24 or 36 months turns out to be ideal. Others, looking for a bargain, prefer to take over the lease of a lessee who has paid a substantial initial payment, allowing them a monthly payment much lower than what an identical vehicle could require. Again others, despite a higher monthly payment, are more attracted by the premium offered by the lessee. The best strategy for you is to compare what kind of monthly payments a car dealership can offer for a new vehicle of the same model, then determine the amount of a premium that may increase interest for your lease. Is your offer is considered a good deal? If your vehicle has been used for less than a year, you must make your lease attractive to potential buyers. Compare the payment of your lease with the one for a new vehicle of the same model. If the rental price of the new vehicle is similar to your payment, you will have to offer a premium to attract the interest of potential buyers. $299 seems better than $349 Obviously, the more attractive the offer is, the faster you can dispose of your lease. We strongly advise that you offer a premium representing a lump sum or equal to 2, 3 or 4 installments. For example, if there are 20 months before the end of the lease and your monthly payment rises to $349, two options are available to you: you could either announce your vehicle at $299 per month ($50 x 20 = $1,000), or just offer a bonus of $1,000 payable at the time of transfer. Have you spent a substantial initial payment that makes your monthly payment interesting or attractive? If this is the case, it is not necessary to provide a premium. Indicate what the monthly payment would be without a deposit in the comment box of your ad. Check with your car dealership to determine the amount.

6 Have you traveled fewer miles than allowed by the lease? If this is the case, it may be valuable to a new lessee. Mention it in the comments box of your ad. Have you traveled more miles than are allowed by your lease? In this case, your lease may only interest people who travel little. To make your offer attractive to a larger number of people, you could offer a premium equal to the excess mileage. Thus, consider the case of a lease for a period of 48 months including 100,000 km ( km / year) and providing 10 cents for each additional kilometer; if km were covered in 24 months (10,000 km longer than the average), it would be appropriate to offer a bonus of $1000 (10,000 km x $0.10). Did you buy an extended warranty or other guarantees? If so, mention it in the comments box of your ad.

7 Preparing your vehicle Although the responsibility to ensure proper vehicle condition rests with the lessee, who will have the vehicle checked by a car dealership, we advise you to repair any damages before transferring your car to the new lessee. Since no one wants to hire a poorly maintained vehicle, and keeping in mind that the first impression is always the most important, make sure your vehicle is in perfect condition when a potential buyer wants to see it. Have it washed, if necessary, in an ALBI professional laundry center. Make sure that all periodic inspections are current Before meeting a lessee, gather together all your maintenance receipts, relevant documents and booklets. If you do not have them in your possession, ask your dealership for a copy. This simple precaution, besides being appreciated by the lessee, will help you avoid many hesitations and unnecessary delays.

8 Negotiating with your car dealership First step: visit your car dealership: Ask to meet with the leasing manager and keep his/her business card. This person will be your main contact and will oversee the preparation of all the documents required during the lease transfer. Confirm the costs associated with the lease. Some dealerships require inspection of the vehicle before the transfer. If this is the case, have the inspection done to avoid a delay in the transaction. Get 4 or 5 credit application forms from your leasing manager, which may be filled out by interested lessees. Send contact information to your manager so that he can contact them to initiate the process. NOTES: We suggest that you complete the credit application yourself in the company of the lessee. Once completed, you can fax it immediately to your leasing manager. In the event that you find someone interested in buying your vehicle instead of a lease takeover, get the current balance of your rental, which will be the amount set for sale. Be reassured that the dealership will do everything in their power to facilitate the sale of your vehicle. And remember that you will not have to pay fees if a sale is settled. All relevant costs shall be borne by the new buyer who will pay the dealership directly. Copies of your lease: Keep 4 or 5 copies of your lease in order to give a copy to every serious lessee who is interested in your vehicle.

9 Negotiating with a potential lessee Your contact information will be available to all people interested in your lease, who will contact you directly. You will receive the contact information of interested buyers who have made a contact request. Do not hesitate to contact them. Since all the details of your lease will be available on our website, only the truly interested will make a request. These people are targeted just for you. Always have the relevant documents on hand prior to submitting them to the buyer in his/her first phone contact. Preferably make home appointments with interested people. Other tips: Find out in advance the costs related to a lease transfer such as inspections, repairs and dealership charges. You should know exactly what the fixed costs of the transfer will be. Set the maximum premium you can offer to dispose of your lease and disclose it from the start to avoid the risk of losing potential lessees. The administrative costs associated with the transfer are generally borne by the tenant (you); use this argument as a negotiating tool.

10 What you need to do when you reach an agreement Once you finalized the negotiations with the lessee, you must follow the following steps: 1. Get an equal or greater deposit of a monthly payment including taxes. 2. Complete a credit application and fax it to the leasing manager. 3. Notify the leasing manager as soon as possible. 4. The next day, follow up with the leasing manager to check credit approval. Such a response requires about 24 hours and, once approved, the transfer should be made within 48 hours. 5. Confirm the date and time when the transfer is effective with the leasing manager and the lessee. 6. At the agreed time, go to the dealership with the lessee to sign the required documents and proceed to the delivery of the vehicle. 7. Make sure a visual inspection is made by the dealership before the transfer of the lease is done and that the record of this inspection is attached to your file. Tip: Even if an interested buyer has already given you a deposit, he may change his mind or be denied funding. In this case, agree to meet anyone else interested in your lease and require a deposit, repeating the same steps again. When the transfer is definitively settled with someone, you can simply give the others their deposits back. You are now fully prepared! We wish you the best of luck and thank you for your trust. Note: Please remove your ad once you've transferred your lease.