Car leasing takeover is a relatively new concept that consists of taking over the contract and the leased vehicle of a motorist who wants to change his car. The takeover must be approved by the finance company.
Taking over a car lease
Car leasing is a contract that specifies that the motorist is the lessee of the vehicle he has chosen and set up, but that he also undertakes to pay back the lease payments for the duration of the contract. If the motorist wishes to change the vehicle during the course of the contract, he or she has two options: to return the vehicle to the dealership and pay a very high penalty or to transfer the leasing contract.
Transferring a car leasing contract is a practice allowed by law, it simply allows the motorist to find a buyer for his contract and his car and transfer the leasing to him, all of which must be validated by the financing company which carries out a solvency study. Transferring a lease can also entail costs, but these are much lower than the penalties.
How does a lease takeover work ?
Generally, it is the sellers who take the steps to make their transfer request visible, so they will use the first Swiss platform (www.leasetransfer.ch) to place an ad and present the particulars of their car contract: rent, type of contract, remaining kilometres, remaining duration and car model. This information allows buyers to be quickly informed of the conditions and to contact the seller to proceed with the takeover.
To validate a trade-in, a leasing trade-in file must be sent to the lessor, i.e. the financial institution that granted the car leasing financing. The file must include supporting documents (identity document, salary slips, etc.) and will be studied by the financial organisation, which will either approve or reject the takeover. The transfer costs can be paid by the seller, the buyer or both, and can be negotiated. Once the file has been validated, the parties meet to exchange the vehicle.
Why take over a lease ?
Taking over a lease can bring certain advantages, such as the total absence of a contribution, the first increased rent was financed by the seller, so the buyer will not have to provide any report. It is also an opportunity to drive a top-of-the-range vehicle or one that is difficult to obtain on order, and to benefit from a contract that has already been negotiated with the car dealership.
Finally, taking over a lease allows you to take advantage of the purchase option in the context of a lease with a purchase option (residual value) and a short remaining term to make a good deal, it allows you to become the owner of a recent vehicle at a price below its value, depending on the type of vehicle, the options and its general condition.
