6. Dylan leases a car from Toyota for 3 years for a down payment of $2,000 and 3

Question

6. Dylan leases a car from Toyota for 3 years for a down payment of $2,000 and 36 monthly payments of $250. After two years, Dylan assigns the lease to Skylar for the remaining year. Dylan informs Toyota that Skylar will be taking over the lease and to expect payments from Skylar. After 6 months Skylar stops making payments and Toyota sues Dylan. You are the judge, who wins?

7. If you were advising Dylan with respect to the assignment in question 6, what advice would you give Dylan in order to insure that Dylan would not be liable if Skylar failed to make the payments.

Explanation / Answer

6. Toyota wins. Even if Dylan assigns the lease to Skylar, its his name on the original lease contract, which legally allows Toyota to sue Dylan. So in case of missed payments and non-payments, Toyota has the right to call upon or sue Dylan.

7. The first piece of advise would be to check if Toyota legally allows transfer of the lease, if yes, make Toyota do the lease transferring.

Second check if the leasing or insurance company provides Lease default protection, where Dylan wouldn't be held responsible for non-payment.

Third, always transfer lease to a trusted friend or family member, who you are 100% sure, wouldn't default on the payments.

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