How to Transfer Your Car Lease To Someone Else

Lease deals most commonly last for three years, and that’s a mighty long time. Circumstances can change in that time – a job relocation, a new family member, or you simply fancy a change. What if you need out of your lease deal early?

Well, it’s not often spoken about, but there is a way that some lease providers allow you to transfer your lease over to someone else. It requires the new leasee to be willing to take on your car and its remaining payments, but it can be the win-win you’re looking for. It’s almost like subletting your flat if you find yourself away from your home city for a while. In the guide, we’ll dive into how a car lease transfer works and what to watch out for.

Can a Car Lease Be Transferred?

In principle, yes. However, it depends on your leasing company’s allowances and the fine print of your contract. Not all lease agreements in the UK allow transfers, so your first step is to check with your lease provider or read through your contract for any clause about “lease transfer” or “lease assignment”.

If your lease company does permit a transfer, the person taking over your lease must be able to pass the leasing company’s credit and affordability checks just as you did.

How Long Does a Lease Transfer Take?

For car leases, a transfer can take anywhere from 2 to 6 weeks to finalise paperwork and approvals, so if you’re under any time pressure, plan accordingly.

How Does It Work, and How Much Does It Cost?

So, how do you actually go about handing your lease over to someone else, and how much does it cost you? Here’s a step-by-step guide to a typical lease transfer process:

1. Lease Agreement Check: Confirm that your contract allows transfers (look for terms like “lease transfer” or “assignment”). If it’s not clear, ring up your leasing company and ask directly.
2. Leasing Company Approval: Notify your lease provider that you want to transfer the lease. They’ll explain any specific requirements and guide you through their process (and may provide official forms or applications to fill out).
3. New Driver Credit Checks: Assuming you’ve already found a new, willing lessee, the prospective lessee will need to submit a credit application with the leasing company and meet their criteria. Essentially, the finance company is vetting them the same way they vetted you.
4. Paperwork and Fees: You and the new lessee will sign transfer documents to officially swap the contract over. At this stage, the leasing company typically charges a lease transfer fee (an administrative fee for handling the paperwork) and possibly a credit check fee for processing the new application. These fees can vary from an order of tens to a few hundred pounds, depending on your provider. Consider this one of those hidden fees when leasing a car that are worth checking upfront, so you’re not caught by surprise.
5. Car Handover: Once all paperwork is done and the leasing company gives the thumbs-up, you’ll arrange to hand the vehicle over to the new driver. Make sure to document the car’s condition during handover (take photos, note the mileage) to avoid any disputes later about damages or excess wear.

In terms of costs, common ones you’ll hit are transfer fees, credit application fees, and the new lessee’s end-of-lease charges (such as excess mileage charges) later down the road. All of these can be small costs if the car is kept in good condition – a small price to pay to be free from your lease.

Can I Transfer My Car Lease to My Business?

What if you took out a personal lease, but now you’ve started a business and want the company to take over the car (and the payments)? Unfortunately, you usually cannot directly transfer a personal lease to a business (or vice versa), at least not in the straightforward way you’d transfer from person to person.

This is your personal lease is a Personal Contract Hire (PCH) contract, and business car leases are Business Contract Hire (BCH) contracts. Allowing a switch would mean rewriting the contract from scratch under a different entity and terms. In fact, most finance companies explicitly forbid swapping a personal lease into a company name mid-term.

Alternate Ways to Leave a Lease

If transferring isn’t an option for you, there are alternative methods to end your lease agreement, such as early termination or, in a case of last resort, voluntary surrender. Check out our guide on changing or ending a lease early, which goes in-depth on early termination costs and policies.

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