What forms can I use to protect myself when subleasing my car?
Full Question:
Answer:
A car lease is a contract between the party who owns the car (lessor) and the one who will use the car (leasee). A contract signed between these parties governs the terms or those conditions under which the car may be used and the obligation of each party. After a consumer signs their lease agreement with an automobile dealer, the dealer typically sells the leased vehicle to a leasing company. The leasing company may be, in fact, the car dealer, or it may be a finance company subsidiary to a car manufacturer, or an independent leasing company. This leasing entity now owns the vehicle and is thus the lessor.
You should review the terms and conditions of your lease agreement to determine your rights and obligations under the lease regarding subleasing and early termination of the lease. Some lease agreements prohibit transferring, subleasing or assigning a lease with or without approval, while some may allow the same under certain conditions, such as the third party meeting credit approval requirements of the leasing company. Your lease may also allow you to terminate the lease early, but you may be liable for a disposition fee, the car's residual value, and/or the remaining lease payments to end the lease early.
We have provided a link below to forms that may be used if you are allowed to sublease your vehicle.