Video: Car lease-trading gaining popularity

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SEATTLE - For those of you about to break a car lease - stop.  Don't head to the dealer just yet.  There's a service that can help you break free of that lease without breaking your contract.

The economic downturn is fueling the business of lease-trading.  A lot of people are going through changes financially.  For some people, a multiple -year car lease can turn into a financial burden.  That's where Leasetrader.com can come in handy.  For about $200, it allows you to list a car and transfer your lease.

"There are a lot of people who are stuck in their leases - five year lease, four year lease - and they just don't want their car anymore," said Keith Foe, Leasetrader customer.

Foe found his new Mercedes through Leasetrader.com, which allows people who want out of their car lease to transfer the lease to someone looking to get into one.

Foe's Mercedes came from a man in California who wanted out.

"For how much he had to drive, he was going to go way over the miles, so he just wanted to get out of it," said Foe.

Foe took over the last 18 months of the two year lease and it made financial sense for both parties.  The people looking to get out of the lease avoid costly penalties associated with breaking a lease and people looking to get in don't have to cough up a down payment.

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For about $200, Leasetrader.com allows you to list a car and transfer your lease.

In the past 18 months, Leasetrader says its had a 24% increase in the number of customers using their service to downsize their vehicle.  Customers report several reasons for wanting to downsize including the credit crunch, housing slowdown, gas prices, job loss and income change.

Today, Foe is driving away happy with his car and its cost.

"So far so good," said Foe.

Foe spent about $200 on the service and just over $600 getting the car shipped to Seattle from California.  He estimates he saved about $4,000 on a down payment for a lease.