You may be forced to terminate a leasing contract before it expires. Some solutions are more favourable than others for terminating the monthly payments.
For various reasons, a person may be forced to terminate a leasing contract before it has expired. There are various more or less costly ways of getting out of the contract.
When can a leasing contract be terminated ?
A leasing contract can be taken out for a period of between 12 and 60 months. However, no one is immune to any unforeseen circumstances that may affect the smooth running of the contract during this period. The reasons may be :
legal : detention, cancellation of driving licence
economic : breach of employment contract, excessive debt
professional : temporary secondment to a foreign country, allocation of a company car
family : birth, taking out a mortgage, children’s education, divorce.
In order to avoid having to pay the monthly instalments when the leased vehicle is no longer in use, it is in the lessee’s interest to terminate the contract.
However, the most economical solution must be found.
Termination of a leasing contract by the lessee
The lessee has several options for terminating the leasing contract before the end of its term :
Buy the leased vehicle and pay the outstanding amount. The lessee has to pay off the credit in order to avoid penalties.
Sell the vehicle and pay off the loan. It is not certain that the sale of the used car will cover the outstanding credit.
Transferring the lease to a private individual : this is by far the least financially damaging solution for someone who has to terminate their lease. The new lessee takes over the vehicle in question. The new lessee undertakes to take over the leasing contract and to pay the monthly instalments until the end of the contract.
If you want to offer to transfer a contract, go to the first Swiss platform for the transfer or takeover of a leasing contract : www.leasetransfer.ch
