How do I terminate a car lease in Switzerland ?
With the rise of leasing with a trade-in value, many lessees are asking themselves the question: “How do I terminate a car lease ?” Although it is possible to terminate a lease before the end of the term, this operation will generally have a significant financial cost. Here are some explanations.
Why terminate a lease early ?
Before knowing how to terminate a lease, it is important to know the situations that can lead to such a decision. Indeed, the way to get out of a car lease will often depend on the reason for the termination.
To buy the vehicle
The termination of a car lease before the end of its term is often due to the lessee’s desire to become the owner of the vehicle. This is known as buying back the lease. However, you must have the financial capacity to pay off your car lease. If this is not the case, Leasetransfer will find a buyer for you and will take care of the purchase of your leasing contract.
For personal reasons
The lessee may be faced with unforeseen circumstances of a financial nature (loss of a job, over-indebtedness, etc.), a professional nature (allocation of a company car, secondment abroad, etc.) or a family nature (taking out a mortgage, divorce, etc.). It is therefore not unusual to want to stop leasing a car. For all these reasons, and especially when leaving for a foreign country, you should contact us. As the leading platform in Switzerland for car leasing takeovers and buybacks, LeaseTransfer will offer you a solution to get out of your car leasing contract under the best possible financial conditions.
How to terminate a car lease : Possible solutions
While leasing with an option to buy now represents more than half of all new car purchases, the number of early terminations of leased cars continues to rise. Leaseholders have several options for terminating their leases :
- Buy the vehicle early : The first option for terminating a lease with a purchase option is to opt for a lease buy-back, provided that the contract allows this. If this is the case, the customer must contact the financing organisation to find out the buy-back value of the vehicle. Once this amount has been paid, the lessee becomes the owner of the car.
- Returning the vehicle : In order to terminate a leasing agreement, it is also possible to return the car to the supplying garage and pay the penalty amount for early termination of the leasing. This solution is certainly the least financially advantageous.
- Selling the car and paying off the car lease : Some lessees also choose to sell the leased car. This sum is then used to settle the outstanding amounts. It is not uncommon at LeaseTransfer that the sale of the leased car covers the amount of the lease buy-back and any compensation to be paid.
- Transferring your leasing contract : This is certainly the most economical way to get out of a leased car. This method consists of transferring your leasing contract to a private individual or a company. The former lessee thus withdraws from his obligations in favour of the new lessee. It should be noted, however, that the lessor and/or the financial institution must give their prior consent.
There are many situations that can lead to the early termination of a car lease. Although there are several ways to terminate a contract, only two of them allow you to limit the financial impact of this withdrawal : Transferring the lease and buying back the lease. That’s why it’s important to think carefully before ending your car lease. Thanks to our support service for the takeover of your leased vehicle or its early repurchase, LeaseTransfer will find you a buyer and assist you in the most financially advantageous procedure, depending on your situation.
