More and more motorists are talking about used car leasing, a market that is mainly fuelled by leasing contracts offered as trade-ins. Let’s take a look at an atypical and fast-growing market.
How can you take over a leased car ?
A motorist who has taken out a car leasing contract with a duration of 48 months and who wishes to change car during the course of the leasing, has only three solutions :
- Early termination : This is clearly the least financially advantageous solution. If you terminate your leasing contract early, you will have to pay a penalty for breaking your leasing agreement according to a coefficient mentioned in your contract. This calculation usually amounts to SEVERAL THOUSANDS OF FRANCS !
- A lease buy-back : The lessee must then pay the full amount of the vehicle to the finance company. This option is convenient if you want to get rid of the vehicle quickly, but you need to have the funds to cover the buy-back amount.
- A leasing transfer : The most financially attractive solution. This involves transferring the leasing contract to another private individual or business. It is simply a matter of finding a buyer who is willing to take over the contract, the vehicle and the lease payments.
In Switzerland, more and more people are opting to transfer their leasing contract due to a particular need : a property purchase, a birth, a divorce, a professional development, a need for a larger vehicle or any other reason that may lead to the transfer of the leasing contract. For the lessee, it is an opportunity to take over a car lease with a contract that has already been negotiated and a shorter term.
Advantages and disadvantages of taking over a lease
The advantage of taking over a lease is that you can take advantage of a contract that has already been negotiated. It is also the possibility of paying back an adjusted rent without having to make a down payment, because this down payment will have been made by the previous lessee. It is also the possibility of buying back a vehicle at a lower cost at the end of the leasing contract and making a good deal depending on the amount of the residual value.
Taking over a car lease means paying off the lease payments, so you need to apply for a contract transfer. The finance company will check the creditworthiness of the buyer by carrying out a financial capacity study, as for a classic car loan. Depending on the leasing company, there are fees for transferring the leasing contract.
How do I transfer a lease ?
LeaseTransfer.ch supports you in this process. As the first Swiss platform for car leasing advertisements, we allow drivers who want to get out of their leasing contracts to place an advertisement free of charge, and buyers to browse through the various advertisements with different search criteria, i.e. a rent for some, a specific model for others, or a chosen duration.
They must then contact the seller and submit the leasing takeover file, which will be examined by the financial institution that owns the vehicle. Only when the leasing transfer is completed can the vehicle be handed over.
