Can the Dealership Deny my Lease Transfer Request

The short answer is "usually no." But it always "depends."

As all other leasing companies, auto manufacturer banks have to comply with the Canadian Government regulations that require leasing contracts to be able to be transferred after previous approval by the vehicle owner (in this case, the leasing company). You can transfer your lease, but you need to do it to someone as creditworthy as you are to be approved.

That said, there is always a liability chain that starts with the person who originally signed the lease: you. But in over 13,000 vehicles we have helped to sell over the past 15 years, we've never heard of a customer who got caught liable for someone else not paying the lease. This is why your dealership, together with the financing entity, will do a credit verification before transferring the lease to someone else. It is a regular process similar to the one you did when you leased your car on day one.

They won't let that person leave the dealership with the car on the day you transfer it without proof of insurance (sent by an insurance company), lots of signatures, proof of IDs and a void cheque. As I mentioned before, we have helped hundreds of customers to find a buyer to transfer their leases over the past decade and never heard any of them complain about this liability from neither brand.

Check over your lease contract. You will find a part, probably titled "Assignment" or "Cession," where your leasing company specifies the conditions under which they allow the contract to be transferred. It should be very short, but call your dealer to make sure of the steps.

Even if you find 20 buyers, the Credit Check wall will only pass through someone financially responsible enough to continue your payments. Otherwise, the vehicle owner/bank won't approve the transfer until you find a serious one.

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping Canadians to better understand the complex market of car leasing in Canada. You can connect with Jorge at Leantrepreneurship.com or send him a direct message.