Because leasing has only been available to private individuals for a few years, and is therefore relatively unknown, and because we’ve all been victims of manipulative dealers, hidden fees and mind-boggling advertising, it’s hardly surprising that there are some very real myths about leasing contracts. If you want clarity, look no further! Here’s a list of some common misconceptions about leasing, to set the record straight.
Myth 1: “Buying is cheaper than leasing”
Not always true. While buying may be the right route if you plan to keep your car long after you’ve paid off your loan, it’s not the cheapest option if you’re looking for something more temporary.
Myth 2: “You will be billed for any damage to the vehicle at the end of the lease”
True and false. There’s an urban legend around leasing that says you’ll be “fleeced” when you return your leased vehicle. The reason is quite simple: some unscrupulous people, whom we won’t recommend here, lure their customers in with more than tempting offers, and then “make up for it” on the cost of reconditioning when the leased car is returned. But most leasing contracts are very specific about the types of damage that are covered and those that are not. You will inevitably cause some average wear and tear to your vehicle, and leasing companies recognize this as normal wear and tear. This “normal wear and tear” is included in the leasing charge. To make things easier, some garages draw up a scale showing what normal wear and tear is after a few years’ correct use. Just remember, whether you’re returning your leased car or trying to sell it, you’ll have the same interest in taking care of it and keeping it in the best possible condition.
Myth 3: “It is impossible to cancel a leasing contract”
False. You actually have three options for getting out of a leasing contract early. You can :
- Return the leased car to the supplier and pay the penalties for early termination of your leasing contract. This is clearly the most expensive solution, and we recommend that you use our 100% accompanied formula to find a much more financially advantageous solution.
- Transfer your leasing through our platform and avoid the costs of early lease termination.
- Buy back your leasing and pay off your lease using our platform, and avoid the penalties of early lease termination.
LeaseTransfer offers leasing termination alternatives for people looking to get rid of their car leasing before the end of the contract. Place your ad on our platform or contact us so that we can offer you a customized solution that will enable you to get rid of your leased car under the best possible financial conditions.
Myth 4: “Finding a good leasing contract is complicated”
True, if you have fun comparing offers from all the dealerships yourself, and if you still believe in Santa Claus (in other words, in advertising!).
False. On the contrary, it’s very, very simple if you work with a leasing professional like LeaseTransfer. Our platform puts people who want to get out of leasing in touch with other people who want to lease a used car. By taking over a lease on our platform, you gain access to pre-negotiated leasing contracts, a shorter commitment period than for a new car lease, and a host of financial advantages.
Myth 5: “Leasing is only for professionals”
False. Because leasing offers a host of advantages, it’s spreading like wildfire among private individuals. These days, buying has never been so risky. The rapid depreciation of the price of a new vehicle, uncertain Eurotax quotations from one year to the next depending on the new models… In short, the beautiful VW Golf on which you have placed great sentimental (and above all resale) esteem loses a lot of value with the arrival of its little sister. Ah, if only you’d leased your car, you’d have left with the new model. In the case of a car lease, it’s the leasing company that bears the risks, not you!
Myth 6: “If I exceed my mileage, I’m overcharged”
True, but with some leasing companies you can readjust the leasing conditions. You’re not going to stop driving overnight because you’ve reached your 15,000 kilometers a year; a simple trip to the supplier’s garage will allow you to extend the distances and go for another spin. Although your leasing charge will increase if you add extra kilometers during the lease, this will cost you much less than paying for the extra kilometers at the end of the lease.
Myth 7: “The leasing interest rate can vary during the term of the leasing contract”
False: Interest rates and lease payments remain unchanged for the duration of the leasing contract. Only a change in statutory levies (e.g. value-added tax) can lead to an increase or reduction in the leasing charge.
Myth 8: “Comprehensive insurance is not compulsory for a leased car”
False. Leasing companies will require you to have a comprehensive insurance policy. This will ensure that you are covered in all situations, not only for bodily injury but also for material damage to the vehicle. Although they may be used, leased vehicles are often recent and of very high quality, so they have a high value.
Myth 9: “My spouse is responsible for paying the lease payments”
True: whoever signs the leasing contract is responsible for paying the leasing instalments. If your spouse is a co-signer, then he/she will be as responsible as you for the monthly lease payments.
False. If your spouse is not listed on the leasing contract and has not signed it, then he/she is not liable for the lease payments, although he/she may use the leased car.
Myth 10: “Leasing only exists for new vehicles”
False. What, you don’t know ? LeaseTransfer is Switzerland’s leading used car leasing platform. Some clever people have already figured this out, and are leasing their used cars for varying periods of time. Leased used vehicles are serviced by brand professionals, in most cases still under warranty and/or offered with service contracts included. The advantage: combine the benefits of leasing with those of second-hand. Less risk and less cost!
