The term, swap a lease, as it applies to car leasing, generally refers to the concept of third-party lease assumption, made popular by Swapalease.com, a company that helps with the process.

An auto lease can often be transferred, or “swapped”, from the original lessee to another party, thereby avoiding the high cost of early lease termination.

The other party takes over the vehicle and assumes responsibility for continuing to make monthly payments, although many car lease companies still hold the original lessee responsible if the new lessee fails to make payments.

This is not a good arrangement for someone who transfers her lease to a stranger who may default on his lease at some later time. This kind of arrangement should be reserved for good friends and family members who have a stable lifestyle and good history of making car payments on schedule.

Some car lease companies do not allow lease transfers, or lease assumptions, at all. Some also disallow transfers during the first and last few months of a lease. If you don’t know how you lease companies handles lease assumptions, call them and find out.

Companies like Swapalease.com assist in the process by helping find “buyers” for those who need to get out of a lease. Since many “sellers” are desperate to get out, it’s often possible to find excellent deals this way. A lease swap can be a good solution for both parties.