New Rules for Unloading Car Leases

(MoneyWatch)  When times were good, you may have stretched your finances a bit and leased an expensive car. But with the economy in a recession, you may now be thinking about downsizing and finding a way to exit the lease. Be careful! Here's how to unload a lease without losing your shirt.

Traditionally, if you wanted out of your lease, you had to go down to your dealership and pay off the remainder of what you owed. Or, if you wanted a new car, you could roll the remaining payments into another lease. But neither option offered a solution if you could no longer afford the monthly payments.

Fortunately, there's a better way out. Websites like Leasetrader.com and Swapalease.com can help you transfer your lease contract to another driver. (Some finance companies have restrictions, so make sure this is an option for you.) These sites look and feel like any other auto site that helps sellers find used car buyers. All you have to do is list your vehicle and include the details of the lease agreement. If a buyer surfing the site is interested in your car and your lease, he contacts you and the negotiating begins. Once the terms are finalized, Leasetrader.com or Swapalease.com help facilitate the transaction and paperwork.

While these sites can seem like a godsend for strapped families, there are few caveats:

• The transaction is not free. Although you won't have to pay off the lease, the sites and the lease finance companies charge fees. Leasetrader.com, for example, assesses a $79 listing fee and a $149 transfer fee. Finance companies typically charge between $50 and nearly $600 when you exit the lease.
• A few finance companies, including Nissan Motors Acceptance Corporation and Infiniti Financial Services, won't let you take your name off the lease contract, according to Swapalease.com. So while you may be able to find someone to inherit your car and make the payments, you're still on the hook if that driver doesn't cut a check each month.
• You may need to sweeten the deal to attract a buyer. That could mean picking up some of the buyer's costs, including his portion of the transfer fee that the sites charge. Some sellers offer buyers cash to effectively lower the monthly payments. Indeed, 12 months ago the average advertised list price on Leasetrader.com was $620 a month. Now it's $570.

Have you had success using one of these websites? Or had a rough experience? Let me know.