Lease Transfer Documentation

Leasing a car allows you to make monthly payments and drive a car for a set period, mostly two to three years. However, if your personal or financial circumstances change during this term, you may wonder what options you have.

Terminating the lease is one option but involves a significant financial penalty, which you would most likely avoid. A car lease buyout is another option, but it requires careful calculation, and you do not always profit from this method.

A lease transfer is the best option to transfer your lease contract to another person. The biggest advantage is not paying the exorbitant lease termination fee.

Transferring a car lease is complex, but knowing the documentation can smooth the process. Whether you are a lessee trying to swap or take over a car lease, it is crucial to analyze all the documents involved in the process.

Let us first review the key terms of your existing lease and then explore the lease transfer documentation.

Key Terms of a Lease Agreement

A lease agreement is a legal contract signed between you, the lessee, and the leasing company, which is the lessor. The agreement defines all the minor and major aspects of leasing the car, from the monthly payments to the number of miles you can drive, lease balloon payment, lease duration, and other restrictions and fees.

Here is what you need to review when transferring your lease

  • Monthly Payments: The amount you are liable to pay the lessor each month. It is calculated after analyzing your credit score and includes costs such as sales tax and depreciation value.
  • Lease Term: Check the remaining duration of the lease
  • Mileage Limit: There are a certain number of miles that you are allowed to drive each year. Track the mileage of the vehicle. An amount will be charged by a mile if you exceed a given limit.
  • Maintenance: Most car lease contracts include maintenance and service support, but they include only slight repairs and cleaning. If the car has undergone major damage, then you need to consider the cost.
  • Early Termination: If you want to switch the car or have to relocate, you can quit a lease. However, you will be charged a fee. The earlier in the term you exit a contract, the bigger the fine you will have to pay.

What are the Important Documents Involved in the Lease Transfer Process?

Transferring a car lease involves various documents, which are:

  • Lease Transfer Application
  • Credit Application
  • Lease Transfer Agreement
  • Vehicle Inspection Report
  • Insurance Proof
  • Transfer of Ownership Form
  • Payment Records
  • Power of Attorney
  • Lease End Inspection

It is necessary to ensure the legality and authenticity of the process. More importantly, you need to get familiar with the various terms and conditions of the car lease transfer.

Let’s explore what each of these documents means.

Lease Transfer Application

A lease transfer application is a form that initiates the lease transfer process. This document is required once you find a potential car lease buyer and shows details about the current and new lessee.

This application is the first step in officially starting the lease transfer process. You and the new lessee need to provide accurate personal details, and you also need to attach details of the existing lease.  The new lessee must also agree to a credit check.

Credit Application

The new lessee must complete a credit application that allows the leasing company to evaluate the creditworthiness and financial stability. A thorough credit check is necessary to ensure that the new lessee will fulfill the financial obligations of the lease agreement. The information that is analyzed includes credit score, monthly income, debt, and assets.

Lease Transfer Agreement

The lease transfer agreement is another legal contract that defines the terms and conditions of the lease transfer. This document formalizes the transfer process and specifies the role of the current and new lessee. Some key elements of the document are

  • Transfer fee that is usually associated with transferring a lease
  • Clearly define who will manage existing damages and overdue payments
  • A date when the lease transfer will take effect

Vehicle Inspection Report

One of the most crucial aspects of transferring a car lease is to assess the wear and tear of the vehicle. A vehicle inspection report provides a detailed assessment of the car’s current condition. The leasing company usually does the inspection, or you can hire a professional inspection team. The purpose of the report is to avoid disputes about damages that may have occurred before the lease transfer. Some key points to review are:

  • Do a personal inspection of the vehicle’s exterior and interior space
  • Identify and make a list of the wear and tear and the repairs that are required before the lease transfer
  • Determine who will be responsible for the vehicle’s maintenance after the transfer.

Insurance Proof

The leasing company wants proof of insurance to ensure the vehicle is covered against potential damages and accidents. Proof of insurance is a document that shows the vehicle is insured under the new lessee’s name. The document includes details like:

  • Coverage Plan: Ensure that the insurance meets the leasing company’s requirements.
  • Policy Duration: Verify that the insurance policy covers the remaining lease period
  • Transfer Process: Determine the steps essential to complete the transfer and update the insurance policy

Transfer of Ownership Form

In most states, the transfer of ownership is required to officially transfer the lease from the current lessee to the new. The document is filed with the Department of Motor Vehicles (DMV). It updates the registration and ensures that the new lessee is the owner and operator of the vehicle. 

The change of vehicle ownership requires registration fees as per the state policies. For the registration process, you need to verify that the vehicle’s details are clearly listed. You and the new lessee also have to provide personal details. Notarization of the document is also a requirement in some jurisdictions.

Payment Records

A document having a complete record of the payment history of the car lease is a ‘payment record.’ The statements list monthly payments, outstanding balances, and any late fees. Once all the payments are made, you need to document

  • Lease transfer agreement
  • Insurance policy update
  • DMV form
  • Payment records

Power of Attorney

A power of attorney is a legal document that authorizes the leasing company to manage the various aspects of the car lease transfer process. The leasing company prepares the lease transfer documents and sends a copy to the current and new lessee for signature.

Lease End Inspection

Once the lease ends, the vehicle is returned to the leasing company. The reason for the inspection report is to ensure that the vehicle is in good condition before it is returned. The vehicle is thoroughly examined, including tires, upholstery, paint, and mileage. Identify the damages that need repair and determine the charges that must be paid before the lease ends.

How Do I Get Out Of a Lease?

If you urgently need to exit a car lease, the best option is to get help from online marketplaces. QuitALease is one of the most popular online platforms for transferring or taking over a car lease.

QuitALease provides a bridge between individuals who want to exit a car lease and those who are looking to assume one. Car lease buyers and sellers widely praise the platform for its user-friendly features.

QuitALease knows that the sudden exit of a car lease will badly impact your credit rating and chances of getting a new car lease. It, therefore, simplifies the process for car lease buyers and sellers and may even aid in helping you get all the necessary documents you need.

Here are the 4 steps you need to take:

1. Register and Post an Ad

You can sign up for free, post an ad, and have it live within seconds. However, to improve your chance of a car lease transfer, you must provide all the vehicle details, the remaining lease term, and the lease payment.

2. Reply to Offers

QuitALease allows you to get multiple offers on your listing. You can review the offers from the platform’s built-in inbox.

3. Start the Lease Transfer process

Once you pick a potential car lease buyer, you can start the lease transfer process, which involves:

  • The lease buyer submits a credit application to the leasing company.
  • The creditworthiness and eligibility of the buyer are checked and approved.
  • The lease transfer documents are prepared and sent to you and the new lessee

4. Complete the Transfer

You and the new lessee will sign the papers, and the documents will be returned to the leasing company. You will hand the car keys to the new lessee, who will be responsible for making the remaining lease payments.

QuitALease provides complete guidance on every step to ensure you abide by the leasing company’s lease policies. The biggest advantage is that the entire lease transfer process may take less than two weeks rather than months.


Transferring a lease can be tricky, particularly for those who have to exit the car lease for the first time. Not knowing the technical details and paying a hefty fine will affect your credit score, making it difficult to get another car lease. It is essential to get familiar with all the documents required to initiate and complete the lease transfer process.

It is important to note that these may vary from state to state, and it is advisable to consult local regulations to ensure that you have everything you need.

Reviewing your existing car lease and fulfilling other documents, such as a vehicle inspection, insurance policy update, and DMV form, will help you avoid potential pitfalls and ensure a seamless transition.