Are you looking for a new car that has the latest technology? Need a vehicle with a little more pizazz but want a short-term commitment and not a lot of paperwork hassle or money down? Or do you have a lease that you would like to get out of? If the answer is yes to any of these questions, then Swapalease may be the right option for you. RewardExpert spoke with Scot Hall, Swapalease’s executive vice president of operations, about why getting in or out of a lease through Swapalease can save time and money.
What is Swapalease?
Hall said the easiest way to think about Swapalease is that it’s like a dating service for car leases. “We help people get out of their leases and we help find people who want to take those leases off their hands. We want to match up those individuals and create a win-win scenario for both sides of the equation.” He explains that the majority of leases are transferable, so his company makes sure everything is done right so no one is put in harm’s way when it comes to following terms and conditions.
“It doesn’t matter the location,” noted Hall. “We match people up electronically through our website.” He described the three basic steps:
- First is reaching an agreement between two parties – in essence, the virtual handshake
- Second, the buying part, or the person taking over the lease would need to a credit check and qualify from a credit perspective
- The final phase is the lease transfer where the final documents are signed and keys are exchanged
How it All Began
Swapalease was founded nearly 20 years ago by the owners of a large automotive group in Cincinnati, Ohio. “The experienced car dealers were tired of having people come into their various showrooms and turning them away when they were looking for new cars as a result of being stuck in a lease, and had a point in that lease where it was simply too expensive for them to get out,” explained Hall. “They tested the concept of lease transferring with some people they knew while they had customers and realized people had an interest in taking another’s lease in the short-term to save money.” The founders tested the process in Cincinnati and then eventually turned it into Swapalease, which now operates nationwide.
So Why Use Swapalease Versus Buying a Car
There are several advantages to leasing with Swapalease. A lease provides a shorter term commitment, more options when it comes to upgrading your car more frequently (gaining the latest models/technology), less hassle, lower down payments and more.
“If a seller wants to get out of a lease the traditional way through a dealer, they could end up with a significant amount of negative equity. If he or she comes to Swapalease, a small listing fee is paid every month, much like a classified ad service, and then from there we’ll do our best to find someone to take the lease off their hands,” described Hall. “So you simply save a lot of money by transferring the car over rather than holding onto something you no longer want or cannot afford.”
There’s also a significant savings from the buyer’s side, as well, noted Hall. “They like the idea that the lease they’re taking over is less of a commitment and less terms than going into leasing a new vehicle. Most leases are 36 months on average, so you’re taking over a fraction of the standard term and people like that shorter commitment.”
And for travelers, there’s a great benefit, too. “Most of the time when you hear people are traveling, they are doing so for business purposes. In many cases, you can get more car for your money with a lease. It also may be advantageous from a business standpoint to be driving a little bit flashier, nicer vehicle, especially if you’re going to be taking clients around, but it also may have some tax advantages for that individual, as well,” said Hall.
Helping People One Lease at a Time
Swapalease’s slogan is, “You want out, I want in.” The company is a great option for travelers, those concerned about their personal finances and anyone looking for a short term commitment on a great vehicle that meets their needs. “We want to match up those individuals who want out with those who are looking for a short-term, low cost way of getting their next vehicle,” said Hall.
Swapalease is also working to help Hurricane Harvey and Irma victims. “We are working on a program to help out those individuals as best we can,” he said. For more information and to get started on getting in or getting out of a lease, visit swapalease.com.