Video: Car lease swapping an alternative to car buying

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SEATTLE - If you're in the market to buy a car, you could be forced to make a bigger down payment to secure a loan. While the weaker economy is taking its toll on the auto market, there is one service said to be benefiting: car lease swapping.

Since credit is harder to come by, more car buyers are paying more in cash. According to JD Power and Associates, the average down payment for non-luxury vehicles was around $5,000 for the first seven months of this year. But by the end of September, that average had jumped by another $1,000.

That's why some people are turning to lease swapping.

Gus Kiss wanted a new Chevy Tahoe, but didn't have cash to fork over in the form of a down payment.

"No money down was big.  Having two kids in college is kind of a challenge to begin with," said Kiss.

That's why he went to a service called LeaseTrader.com. It allows people who want out of their car lease to transfer it to someone looking to get into one. It can make financial sense because the people looking to get out avoid costly penalties associated with breaking a lease and people looking to get in don't have to cough up a down payment.

It seems a lot of people are taking to the idea. Right now, many car dealers are requiring larger down payments due in part because of stricter credit requirements. As a result, LeaseTrader.com says it's seen a 30% increase in users in the last 90 days.

They say some people even offer cash up front to take over their lease. Other deals aren't so rosey.

"The number of available miles per month: 585 - not a very good opportunity there, especially with 33 months remaining," said Kiss.

Kiss finally found a woman in Woodinville who was moving out of the country and needed out of the lease on her Tahoe. He picked it up the remaining 40 months on the lease, with no money down.

Kiss says he's happy with his car and its cost, especially now that gas prices are heading in a better direction.

"So yeah, that $2.79 and hopefully it will continue to go down."

According to JD Power and Associates, you might be a good candidate for a lease if you fit the following:

*you enjoy driving a new vehicle

*you don't have much money for a down payment

*you drive less than 15,000 miles annually

*and you take proper care of your car, servicing and washing it regularly. 

It costs about $200 to list a car and transfer a lease on Leasetrader.com.