letting someone take over my car lease

[johnnie23g]

I leased a new car that I no longer want. My parents wanted to take over legal responsibility for the lease. Will this affect or hurt my credit in anyway?

[cdtotten]

In order to get this liability to transfer, you would have to contact the leasing agency and fill out the paperwork (if allowed) to officially transfer the lease. The new responsible party may have to go through a qualification process with the leasing agency.

If you do not go through this process and just let your family member "take over" making the payments, etc... the lease will remain on your credit reports as an active tradeline and any missed payments would be your responsibility. The payment would also be factored into your DTI for other loans until the car is paid off or traded back in.

[johnnie23g]

Yes they are actually going to take over the credit responsibility and get it switched to them. Will that negatively impact my credit from having it switched off my report?

[guydiver]

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@johnnie23g wrote:

Yes they are actually going to take over the credit responsibility and get it switched to them. Will that negatively impact my credit from having it switched off my report?

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It will not negatively affect you unless there are any late payments before you transfer the lease.  You will get credit for the(positive) tradeline for approx. 10 years after it is closed upon transfer.

[webhopper]

This won't affect your credit negatively, other than lenders might wonder why the lease was paid off early.