LeaseTrader Review: Can I Trust It?

https://www.findthebestcarprice.com/author-ftbcp

Geoff Cudd

Geoff Cudd

I am a serial entrepreneur and a consumer advocate. When I’m not helping car buyers, I love working on ventures that have a positive impact.

I run a cause marketing agency and serve on the board of Vayu Global Health where we are disrupting the medical industry and preventing the needless deaths of mothers and babies during childbirth.

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LeaseTrader is an online platform that connects people who want to trade their lease with people looking for a short-term lease.

They claim to be the most reliable name in car leasing, but many customers would disagree.

That’s where our experienced editors come in. As avid car guys, we know what we're looking for in a lease trading company. We tested out LeaseTrader to see if it's worth using.

It is worth trying because of the exposure it offers, but using it has some caveats. There are numerous complaints over customer service and fairly high (non-refundable) fees for both lease traders. 

Here’s our full review of LeaseTrader.

Key Takeaways

• LeaseTrader is user-friendly and offers good exposure for lease listings through its platform and social media presence.
• LeaseTrader's customer service and non-refundable fees have affected its overall customer satisfaction.
• Alternatives (Swapalease, Facebook Marketplace, Craigslist, and online brand communities) provide potentially more favorable experiences or free listings but they come with their own sets of limitations.
• Successfully trading a lease, whether through LeaseTrader or an alternative platform, requires thorough research and understanding before proceeding.

Our LeaseTrader Rating 7/10

Overall, we liked LeaseTrader and found it easy to use. The platform offered good exposure to a large social media following, and it could help you trade a lease.

We had a good experience with customer support, but many customers do not, which is concerning. Furthermore, the fees are non-refundable, which can be a bit frustrating.

It's possible to trade your lease in other ways, but we would recommend checking out LeaseTrader as a viable option.

• Advertising Exposure: 4.5/5
• Ease of Use: 4/5
• Fees: 3.5/5
• Customer Satisfaction: 2/5

What is LeaseTrader?

Started in 1998, LeaseTrader is an online platform for buying and selling car leases. People who currently have leases they want out of can post an ad for their lease.

Those looking for a short-term lease can browse through a listing of available leases.

How Does LeaseTrader Work?

Lease Trader facilitates the transfer of vehicle leases between individuals. The platform provides an avenue for individuals who want to exit their current lease agreement to find someone willing to take over their lease.

Here's how Lease Trader works:

1. Listing: The person looking to transfer their lease creates a listing. They provide details about the vehicle, lease terms, and any incentives they may offer.
2. Search: Potential leasees browse through the available listings. They can filter by vehicle make, model, location, or specific lease terms to find a suitable lease. 
3. Contact and Negotiation: Once a potential match is found, interested parties communicate through Lease Trader's messaging system. They can discuss the lease transfer, negotiate terms, and address any questions.
4. Lease Assumption: After both parties agree, the lease assumption process begins. The leasee typically submits an application to the leasing company for credit approval. Once approved, they assume the remaining lease term and associated payments.
5. Finalization: Once the lease assumption is approved by the leasing company, the transfer is finalized. At that time, the original leaseholder is relieved of their obligations.

Is LeaseTrader Legit?

There are mixed responses about the legitimacy of LeaseTrader. They have not claimed their profile on Consumer Affairs, and have many complaints online.

Still, it seems as if a few people have had a positive lease trading experience.

How Much Does LeaseTrader Cost?

For Sellers

LeaseTrader charges sellers for uploading listings of the available lease. They have multiple listing levels at different price points. Seller fee options include:

• $99.95: 15-photo listing
• $199.95: 7 days of high exposure (social media marketing, prominent listing, suggested results)
• $249.95: 30 days of high exposure

Upon completing a successful lease transfer, sellers must also pay LeaseTrader a non-refundable $149.95.

For Buyers

LeaseTrader also costs money for buyers. The rate options include:

• $9.99 per month for 6 months
• $19.99 per month for 2 months
• $34.99 for one month

On top of the subscription fee, buyers must also pay a $149.95 commission fee for a successful lease transfer.

How Does LeaseTrader Make Money?

LeaseTrader makes money via its buyer and seller fees above. They charge both buyers and sellers to use the platform, and they also charge each party a commission on successful transfers.

Looking to buy or sell your car? Check out Carvana

What Credit Score Do You Need for LeaseTrader?

You must have an “established and good standing US credit history” to take over a lease with LeaseTrader. They screen for credit scores, but the leasing company will ultimately decide if your credit is high enough.

Essentially, there’s no set-in-stone credit score that you need. It will vary based on the lending company, the particular lease, and more. In general, most people with credit scores above 620 may be approved for a lease.

Can You Negotiate with LeaseTrader?

When buying or selling a lease on LeaseTrader, you are not negotiating with the platform. Instead, you are negotiating with the other party.

While the leasing company sets the terms of the lease, buyers and sellers are free to negotiate who pays what.

For example, some of the most common points of negotiation include who will pay the inspection fees, transportation fees, and/or lease transfer fees.

How to Take Over a Lease with LeaseTrader

Here’s the process to take over a lease as a buyer on LeaseTrader:

• Search. Browse the available listings.
• Contact. If you find a lease of interest, click “Contact Seller”. To do this, you will need to have an account.
• Credit Check. Complete the credit application. LeaseTrader will contact you within 24 hours.
• Documentation. If you are approved, then you must complete lease transfer documents with the seller. This takes approximately 3-5 business days. In some cases, you must mail the documents, which will take longer.
• Finalize Transfer. Once the lease company receives the necessary documents, they will finalize the transfer.
• Register Vehicle. You must then register the vehicle in your name and pay for license plates through the DMV.

How to Transfer Your Lease with LeaseTrader

LeaseTrader does not handle the actual transfer of the lease. Rather, it’s an advertising platform that connects people who want to get out of a lease with those looking for a short-term lease.

It’s up to the seller to then contact their leasing company and facilitate the lease transfer.

LeaseTrader Review – The Good & The Bad

LeaseTrader Pros: Here’s What I Like

• Social Media. Good social media exposure for promoted listings. They have a large Facebook audience.
• Easy Process. Easy to list vehicles and leases.

LeaseTrader Cons: Here’s What I Don’t Like

• Customer Service. Slow customer service that does not intervene often.
• No Inspections. Do not verify vehicle listings or perform inspections.
• Fees. Non-refundable fees.
• Not Guaranteed. No guaranteed success with lease transfer.
• Does not handle the lease transfer. The seller must contact and work with their leasing company.

Is It Possible to Beat the LeaseTrader Experience?

While LeaseTrader may help you transfer a lease, it’s not the only solution. There are many important complaints about using LeaseTrader.

Ultimately, it is definitely possible to beat the LeaseTrader experience. It’s not the only solution for transferring a lease.

Still, LeaseTrader may be a good tool to use. Here are some tips for improving the experience:

• Browse Alternative Sites for Listings. Check the alternatives listed below, and see if you can find a listing on a free site before creating an account.
• Pay Close Attention to the Lease Agreement. Before moving forward with any lease transfer, make sure you understand the terms and what you are responsible for as the buyer or the seller. You may want to consider a lease buyout as another option.
• Create Accurate Listings. If you are selling your lease, then provide accurate details and photos. Clearly exhibit the condition of the car and the lease details. Creating a more detailed, accurate listing improves your chances of finding a buyer who wants to move forward.
• Offer Incentives. While lease terms are not negotiable, the deal between the lease buyer and seller is. Consider offering reasonable incentives to help your listing stand out. Just be careful not to overdo incentives to the point where you lose a lot of money.

LeaseTrader Customer Complaints

To be honest, there are a lot of customer complaints about LeaseTrader. Still, they have 3.9 out of 5 stars on Consumer Affairs. The most negative reviews commonly complain about similar issues including:

• Lack of Listing Verification. Several buyers see listings of interest, but they must pay for an account to contact the seller. Only after paying for the account do they find out the listing is no longer available.
• Poor Customer Service. Many reviewers cite poor customer service, including slow response times and a lack of helpful solutions.
• Scammy Feel. Many reviewers question the legitimacy of the service, stating that charges are not clear, there’s no guarantee that you find someone to take over a lease, and that their experience made it seem like LeaseTrader cares more about getting people to pay than helping them.
• Trouble Removing Listing. While people seem to find making a listing easy, they stated it was difficult to end a listing, and they experienced many charges after trying to remove the listing.

Alternatives to LeaseTrader

LeaseTrader is not the only solution for trading a lease. Here are some of the top LeaseTrader alternatives:

• Swapalease: Swapalease is the main direct competitor to LeaseTrader. The platform works very similarly, charging for listings and buyer subscriptions. While Swapalease also does not verify listings, many reviews suggested a more favorable experience with this platform. Check out our full Swapalease review here.
• Free Platforms like Facebook Marketplace and Craigslist. On either website, you can post local ads. With Facebook Marketplace, you can even reach people around the country. Better yet, neither buyers nor sellers need to pay to use these sites. However, the responsibility of the entire lease trade process will be on you.
• Online Brand Communities. Many leading auto brands also have online forums, clubs, social media groups, etc. You can also join one of these communities and post about your lease.
• End Your Lease Early. While it can be costly to get out of a lease, there are times when this could be a better solution. Read our helpful article to learn what you need to know about the different options for ending a vehicle lease early.

Do We Recommend LeaseTrader?

Yes, after considering customer reviews and evaluating the platform, we can confidently say that we recommend LeaseTrader for lease transfers.

My LeaseTrader experience is generally been positive. The platform has a user-friendly interface and an effective matching system. It’s easy to browse through available lease listings and connect with potential leasees or leaseholders.

The messaging system enables smooth communication and negotiation between parties, ensuring a transparent and efficient lease transfer process.

Another quality we appreciate is the high level of customer support. The platform offers assistance and guidance throughout the lease transfer process, addressing any concerns or questions.

Of course, you must approach any lease transfer with due diligence. Even so, LeaseTrader demonstrated its ability as a trustworthy platform. It offers a wide selection of lease listings, fosters effective communication between users, and provides necessary support along the way.

Frequently Asked Questions

Can I be a lease buyer and seller with LeaseTrader?

Yes, you can buy and sell on LeaseTrader at the same time. When you do this, you can log in on one profile for both. However, LeaseTrader is not clear about fees. You’ll likely have to pay both the fee for buyer subscription and seller listings when you do both at the same time.

How long does the lease transfer process take?

The time of the transfer process varies depending on the leasing company and finance company. The process may be finalized in as little as one day, but it could also take several business days.

Can I terminate a lease prior to the full term of the contract?

In most cases, you can terminate a lease before the lease-end date. However, this typically includes several additional expenses that may not be worth it. For example, many lease companies have a hefty early termination fee. Depending on the cost of ending your lease early, it may be financially smarter to transfer your car lease instead.

Can I back out after starting the transfer process?

Until the final transfer documentation is signed, the buyer or seller can change their mind. However, any fees paid to LeaseTrader are non-refundable once the process starts.

How often are LeaseTrader listings updated?

LeaseTrader claims that listings are updated in real-time. However, several customer reviews suggest that listings are not always accurate with the most up-to-date information.

Where is LeaseTrader available?

LeaseTrader is available throughout the United States. It has listings from around the country, including Los Angeles, Miami, New York, and more.