Generally, no, someone else cannot simply continue driving a leased car after the lessee dies. The lease agreement is a legal contract between the leasing company and the deceased individual. Upon their death, the responsibility for the vehicle and the lease contract passes to their estate. The executor or administrator of the estate must contact the leasing company immediately to understand the specific options, which typically include a lease assumption by a qualified individual, an early buyout, or returning the vehicle.
The most critical step is for the family to notify the leasing company as soon as possible. Continuing to make payments temporarily can prevent default, but it does not transfer the legal obligation. Most lease contracts contain a "death clause" that outlines the specific procedures. The estate is liable for any remaining payments and potential early termination fees or disposition charges if the car is returned. If the estate can't cover these costs, the leasing company may repossess the vehicle.
A key factor is whether there was a co-signer on the lease. A co-signer is equally responsible for the lease obligations and would be expected to continue payments. Without a co-signer, the process involves the estate's executor. Some manufacturers have programs that may allow a family member to assume the lease, but they must undergo a credit check and meet the lender's qualifications.
| Automaker / Lessor | Typical Policy Overview | Early Termination Fee for Estate? | Lease Assumption Possible? |
|---|
| Toyota Financial Services | Estate is responsible for the lease; offers options like assumption or early termination. | Often waived, but estate pays any past-due amounts and vehicle charges. | Yes, for a credit-qualified immediate family member. |
| Honda Financial Services | Requires executor to contact them; may forgive early termination fees with a death certificate. | Frequently waived to alleviate burden on the family. | Possible after a standard credit application. |
| Ford Credit | Works with the estate to find a solution, which may include a third-party buyout. | Case-by-case basis; often works with the family to minimize fees. | Yes, but the new lessee must qualify. |
| GM Financial | Allows estate to transfer lease or terminate early; requires official documentation. | May waive fees if the vehicle is returned in good condition. | Transfer to a qualified individual is permitted. |
| Chase Auto | The lease contract is with the individual, so the estate must settle the obligation. | Standard early termination charges typically apply. | Allowed, subject to standard credit approval. |
The best course of action is always proactive communication with the lessor. They have dealt with these situations before and can guide the family through the necessary steps, which can prevent additional financial stress during a difficult time.
