A lease takeover is cheap compared with early termination, but it is not free. Here is every cost that can appear, who usually pays it, and how to check the real number with your lender.
| Cost | Who it applies to | How to confirm it |
|---|---|---|
| Lessor transfer / assumption fee | Set by the leasing company; buyer and seller agree who pays. | Ask the lender by phone — it is the one number that decides the deal. |
| Credit application | Buyer. Some lenders charge nothing, others a small fee. | Ask when you request the transfer package. |
| Security deposit | Buyer, if the lender asks for one based on credit. | Confirmed at approval, not before. |
| Sales tax on payments | Buyer, on every payment: 13% HST in Ontario, 5% GST + 9.975% QST in Quebec, 5% GST in Alberta, GST + PST in BC. | Compare the lease statement with the listed payment. |
| Registration and plates | Buyer, through the provincial registry. | Provincial fee schedule. |
| Insurance | Buyer, with the coverage the lessor requires. | Quote the exact vehicle before applying. |
| Inspection | Optional, buyer. | Any licensed shop; worth it on a luxury car. |
| Cash incentive | Paid by the seller to the buyer, when the market needs it. | Agreed between you; pay it only on a completed transfer. |
Fees vary by leasing company and change over time, so treat any fee list you read online — including a dealer's — as a starting point, not a quote. The lender's own transfer package is the authority.
There is no rule, only negotiation. In practice the seller pays the transfer fee when they are in a hurry, and the buyer pays it when the payment is clearly below market. The cash incentive moves the same way. What matters is that both numbers are agreed in writing before the buyer applies.
Buyer's real monthly cost = (payment with tax × months left + fees you pay − incentive you receive) ÷ months left
Whoever agrees to. The leasing company charges the fee once; buyers and sellers negotiate who covers it, and the answer usually depends on how good the payment is and how fast the seller needs out.
It is set by the leasing company and varies between lenders, so call the lender named on the lease for the current amount rather than trusting a published list.
You do not pay tax on the whole vehicle. Sales tax applies to each monthly payment you make, at your province's rate.
They can ask for a transfer payment, but the lease payment itself is fixed by the contract. Anything extra is a private arrangement, so weigh it against the effective monthly cost before agreeing.