QuestionQUESTION: My situation is this. I am currently in a lease (2006 Nissan Altima)that expires in Jan 09. I want to by my brother's 2006 Toyota Highlander. We want to swap vehicles so when the lease is up he can turn it in and purchase something else. What is the procedure for me to sign over the remainder of the lease to him?
ANSWER: Hi John, He will need to qualify on your loan. Contact the lender that has your lease and they can approve him to take over the remainder. They will probably charge you a fee.
Really the simplest thing is just swap vehicles without going through all this. You will need to qualify to buy his also.
Are you wanting to finance or lease his? Or just take over his loan through his lender?
You could trade yours in onto his, get a new loan. Then he could get whatever he wants.
---------- FOLLOW-UP ----------
QUESTION: I make my payments to Nissan. I am taking a loan against from my pension for the Highlander. When you say swap vehicles, how could I do that with the auto insurance. We're both home owners.
AnswerYou can add each other to your insurance policies.
I bet you're upside down right now in your Altima. Nissan makes it difficult to trade early.
And he's probably upside down in his.
I'd say just swap, add each other to insurance, turn yours in when the lease is up. By then his Highlander shouldn't have any negative equity.
I could look at his payoff, the value and what a lease/finance payment would be for you. Unless you are paying cash.
