How to transfer a car lease in the UK

Need out of a car lease early? A transfer to another driver could be your cheapest option. Here’s how the process works.

When you lease a car, you commit to paying for it over a set period. But if your circumstances change, you might want to end the agreement early.

One option is to transfer your lease to someone else, which could help you avoid an early termination fee.

Here’s how lease transfers work in the UK and what you need to know.

Remember, you can lease a car right here on Carwow. We’re here to help you through every step of your car-changing journey.

Can I transfer a car lease to another person?

If your lease allows it, you may be able to transfer it to someone else, but not all leasing companies permit this, so always check your agreement first.

You’ll usually need at least 12 months left on the lease, be up to date with payments, and get approval from the finance company. The new driver must also pass a credit check and sign a new agreement.

A Personal Contract Hire (PCH) can often be transferred to another individual or sometimes a business, but company leases usually can’t be transferred to individuals.

If approved, the key terms – monthly payments, mileage limit, and contract length – stay the same.

How much does it cost to transfer a car lease?

Lease transfer fees vary by provider, but there’s usually an admin charge to cover paperwork and credit checks.

Extra costs may apply if the car needs inspection, a formal handover, or transport in some cases.

Before a transfer can go ahead, you’ll typically need to:

• Be up to date with payments.
• Ensure the car is in good condition (fair wear and tear only).
• Stay within the mileage limit.
• Clear any outstanding charges.

Any issues will usually need to be resolved before approval.

How does a lease transfer work?

There’s a bit of admin involved in transferring a car lease, but the process is fairly straightforward.

First, check your lease agreement to make sure transfers are allowed. If they are, contact your leasing company to let them know what you want to do. They’ll explain what information they need and how the process works.

The leasing company will then manage the transfer. This usually involves the new person applying for the lease and passing a credit check, which must be approved before anything can go ahead.

Timing varies depending on the provider and how quickly documents are completed, but it can take anywhere from a few days to a couple of weeks.

Once approved and signed off, the transfer date is confirmed and the car is handed over. From that point, the new driver is responsible for the vehicle, including insurance and ongoing lease payments.

Alternative ways to get out of a car lease

If you can’t transfer a car lease to another person, there are alternative ways to end or exit a lease agreement. Here are the main options.

Early termination

You may be able to request an early termination of your lease, but it’s not guaranteed. Many leasing companies will allow it only in exceptional circumstances, and they are under no obligation to accept it because you are bound by a legal contract.

Early termination is usually the most expensive option. The fee is often calculated based on a large proportion of the remaining payments, rather than a simple flat percentage. Depending on the agreement, this can sometimes be close to the remaining rental balance, though exact costs vary significantly between providers.

In addition, you will usually still be responsible for:

• Any excess mileage charges.
• Damage or refurbishment charges based on the vehicle’s condition.
• Any outstanding fees under the agreement.

Lease buyout

A lease buyout is when you buy the car from the leasing company by paying the agreed buyout price (also known as the settlement figure), which may include remaining payments and any final fees.

Not all leases offer a buyout option during the term, but it’s sometimes available, particularly near the end of the contract. In some cases, the leasing company may allow early settlement if you choose to end the agreement and buy the car.

Lease trade-in/replacement

Some leasing companies may allow you to end your current agreement early if you take out a new lease with them. This is often described as a “swap” or “upgrade” rather than a true trade-in.

However, if you go through a dealer instead, they cannot directly “trade in” a leased vehicle in the usual sense because you do not own it. To do anything with the car in that way, the lease must first be settled or a buying option exercised so ownership is transferred from the leasing company.

Pros and cons of transferring a car lease

Pros	Cons
You avoid paying hefty early termination fees. Better option than defaulting on your payments. The person taking over the car doesn’t usually have to pay the initial rental.	You’ve got to find someone to transfer the lease to. Not an option from some leasing companies. Can take weeks or months to make the necessary arrangements.

How to transfer my car lease to another person in seven simple steps

Here are seven typical steps you need to take to transfer a car lease to another person:

1. Check your lease agreement or ask the leasing company if transfers are allowed and under what conditions.
2. Contact the leasing company to start the process and get requirements.
3. Find a suitable person to take over the lease.
4. The new person submits an application and undergoes a credit check.
5. If approved, pay the lease transfer/admin fee (typically £150-£500).
6. Sign the transfer agreement and confirm the official transfer date.
7. Continue making payments until that date, then arrange the handover of the car, keys, and documents.

Car lease transfer FAQs

How long does it take to transfer a car lease?

There’s a lot of paperwork and administration involved in arranging to transfer a car lease. This could take days or months, depending on how busy the lease company, its finance broker and you are. Make sure all documents are signed and returned as quickly as possible so you don’t cause any delays. This can take up to two months to complete.

When is the lease transfer final?

The lease transfer is final once the transfer of contract document is agreed and signed by all parties, then a lease transfer date needs to be confirmed.

Can another company take over a lease?

It’s only possible for another company to take over a lease if it is being transferred from one company to another – not from an individual person to a company.

Can I sublease my car in the UK?

It’s unlikely that your lease agreement will allow you to sublease your car. This is because you do not own the car. The leasing company will not want someone they don’t have any records of using the car.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

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