How it works

While many individual leaseholders seeking to dump their leases post ads on lease trading and other sites, car companies and dealers also list leases. You can find almost any model and make available for lease buying. Terms range from as short as five months to as long as five years. Because consumers leasing cars generally prefer loaded models, most leased vehicles available for trade have desirable options.

If you're interested in trading leases, you can work through an established lease-trading company such as LeaseTrader.com or Swapalease.com, or go it on your own through sites such as Craigslist or eBay. When working through a lease-trading company, both buyers and sellers pay a fee during certain points in the transaction.

The lease-trading companies vary in their fee structures. For those interested in assuming a lease (the buyers), Swapalease charges initial fees ranging from $39.95 to $79.95, while LeaseTrader.com charges range from $29.95 to $129.95. LeaseTrader.com also charges the buyer and the seller a $149.95 transfer fee. For sellers who work with Swapalease, there is a $45.95 initial listing fee and a $95 "success" fee when an agreement is reached between the buyer and seller regarding a lease transfer. If the agreement should fall through, Swapalease will credit the seller with the $95 toward a future lease transfer transaction.

Individual car companies and banks charge transfer fees in addition to those charged by the lease-trading companies. A list of fees those fees can be found on the Swapalease site. These fees vary but could be $45 for a lease transfer for Toyota, $595 for General Motors Acceptance Corp., $250 for Wells Fargo Bank and $75 for Ford. Some car companies and banks also charge a credit application fee.

In most cases, these fees are far less than those charged by car dealers and leasing companies to get out of a lease. If you terminate a lease early, most leasing companies -- who work through car dealers -- will require you to pay the rest of what you owe on the lease, plus early termination fees, or force you to purchase the vehicle. Generally, lease contracts treat all early terminations the same way, regardless of the reason for the termination, including the death of the leaseholder, a job loss or a move to a foreign country.

You must also register a car in your locality, which usually involves a fee. For information on fees in various states, check out Swapalease.com. If you're interested in buying a lease from a seller who is some distance from you, there will be transportation charges involved, which buyers and sellers typically negotiate. You may also want to pay for a mechanical inspection, which typically runs at least $100.