Which car insurance should I choose for a leased car ?

Leasing is an increasingly common practice among Swiss drivers. It consists of leasing a car for a given period of time, then either returning the leased car at the end of the lease, or acquiring it permanently in the case of leasing with a purchase option. The vehicle is not necessarily new at the start of the lease, but perfectly maintained. Which insurance contract should I choose for a leased car ? What are the advantages, disadvantages and differences with no-leasing car insurance ?

Who should insure the vehicle, with or without leasing ?

Drivers must insure their vehicles, with or without a lease. Car insurance, regardless of the type of vehicle purchased (cash, credit or lease), is compulsory for all motorized vehicles used on public roads. As a minimum, you need third-party liability insurance, which covers only property damage and bodily injury caused by the insured vehicle to third parties in the event of an at-fault accident on the part of the motorist. If you don’t have third-party insurance, you won’t receive authorization for your vehicle from the motor vehicle department. To obtain this authorization, you need a certificate of insurance, sent electronically by your insurer to your cantonal motor vehicle department. If you lease a car, it’s up to you to take out car insurance, either by accepting the insurance offered by the leasing company, which can insure the leased car, or on your own, by selecting the leased car insurance contract.

This means that you also have to pay for this car insurance in addition to the monthly lease payments. If you decide to take out insurance outside the leasing company, you must first ensure that the contract selected is suitable for your finance company.

The leasing company can offer car leasing insurance

In many cases, the leasing company can offer you a car insurance policy directly when you sign the leasing contract. You are not obliged to accept: The best option is to compare this offer with other car insurance companies on the market.

For a leased vehicle, the leasing company will require you to take out comprehensive insurance, also known as complete collision or fully comprehensive insurance. You cannot refuse this requirement. If the leasing company has a list of requirements for car insurance on your leased car, it’s sometimes simpler to take out the insurance contract they offer.

Which car insurance should I choose for a leased car ?

The best car insurance for a leased car will depend on your constraints and personal situation. Like all car insurance, its price can vary according to your situation and the vehicle’s technical characteristics. The best thing to do is to use car insurance comparison services and get a personalized online quote, which will tell you exactly how much you’ll have to pay if you take out leasing car insurance. You can also contact us so that we can offer you leasing car insurance through our partner insurers. You’ll benefit from a discount on your first year’s premium.

Warranties to choose for car leasing insurance

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. Leased vehicles are often recent and of very high quality, so they have a high value.

Liability or partial cover will not be accepted for a leased car. Full comprehensive insurance often includes a wide range of cover already included in the contract. Some types of insurance cover are therefore compulsory for leasing companies, such as theft, fire, etc. Each situation will depend on the lessee and the vehicle. For their part, insurers offer situations adapted to leased cars.

What to do in the event of an accident with a leased car ?

In order to anticipate this kind of inconvenience, leasing companies require drivers to be insured with the highest levels of cover. This ensures compensation for bodily injury and material damage to third parties, as well as to the driver. The procedure remains the same as if you were the owner of the vehicle: in the event of an accident, you must notify your insurer to initiate the claims procedure. Of course, you must also notify the leasing company that owns the vehicle. As with all automobile claims, if your contract includes a deductible, you’ll have to pay it. If, on the other hand, you have opted for a policy with no deductible, you won’t have to pay anything.

Leasing with used cars

Leasing can be applied to both new and used cars. In this case, the system works in the same way as for a new car: you pay rent every month to use your leased car over a defined period. You can put down a deposit or pay an increased first lease rental, and you can choose to buy your car at the end of the leasing contract if you are leasing with an option to purchase. Leasing with used cars is even more affordable. Just take a look at the ads for leased cars for trade-in on our platform and you’ll see that a car lease trade-in can be financially advantageous. When it comes to leasing car insurance, the conditions are the same for a used car as for a new one.

Leasing and car insurance: are they still always linked ?

Insurance is not always included in a leasing contract, depending on the leasing company. In any case, you can accept or refuse the offer. The leasing company will require you to take out comprehensive insurance cover, whether the leased vehicle is new or used. In general, it’s easier to accept the car insurance offered by the leasing company if it has one, especially when it comes to paying the monthly payments, which will combine the leasing charge and the insurance into a single monthly payment, and making administrative management easier.

Returning a leased car : A few tips !

Leasing with an option to purchase does not necessarily result in the purchase of the vehicle at the end of the lease. At the end of the contract, you must return the leased vehicle if you feel that it does not really meet your needs, or that you simply no longer have any use for it.

There are a number of rules you’ll need to follow when returning your leased car, as you may be charged more or less in the event of visible damage or if you exceed the mileage limit set out in the leasing contract. Here are a few tips to help you return your leased car properly.

  • Returning a leased vehicle : A key stage

Under a lease with purchase option, you dispose of the vehicle as if it were your own, except that you do not actually own it. The vehicle registration document shows code 178 “change of ownership prohibited”, as the vehicle remains the property of the leasing company. During the term of the contract, you will be required to make monthly lease payments in return for the use of the car. At the end of the leasing period, you are faced with two choices: return the leased vehicle to the garage, or purchase it outright, subject to acceptance by the supplying garage. Don’t be fooled into thinking that all you have to do at this stage is return the car and you’ll be in good standing with the leasing company and the supplying garage. On the contrary, the vehicle will undergo a thorough examination by the supplier to check that it is in a “normal” state of wear and tear. In the event of anomalies, you will be billed for the cost of repairing the damage.

  • Respect the return date of the leased vehicle

The first thing you absolutely must do when returning your vehicle at the end of the lease is to set a return date. At first glance, this may seem basic, but the truth is that if you’re late, you risk incurring financial penalties imposed by the leasing company. Normally, the leasing company will notify you by post of the date by which you must go to the dealership to hand over the keys. In the event of unforeseen circumstances, always inform the leasing company, who will extend the term of your leasing contract.

  • Restoration costs

The return of your leased car is not to be taken lightly, because it can result in a large bill for repair costs, which can vary in amount depending on the damage. Normally, the vehicle supplier can be flexible in the case of slightly worn carpets or micro-scratches on the bumper. Nonetheless, he may ask for certain missing or damaged elements to be refurbished. And that can be very expensive. Don’t forget to check the vehicle’s condition. This way, you won’t have to pay for damage that already existed before you leased the vehicle, if the car was second-hand.

  • Respect normal wear and tear

The standard condition of a vehicle checked during a lease return includes a number of elements, starting with the bodywork, which must be free of scratches, dents, stains and rust. The mechanic will also examine the upholstery, which must be free of holes, tears and stains. As for the tires, it’s important that they show at least 50% wear, and that they’re all of the same brand. As for the engine, any parts showing signs of wear must be replaced.

  • Beware of mileage penalties

If garages are very strict about the vehicle’s condition, it’s because they’ll still be trying to resell it on the second-hand market. If it’s too run-down, the price is likely to fall, resulting in a significant financial loss. In addition to the state of wear and tear of the car, the garage will also check that you have complied with the fixed mileage, which is also imposed to mitigate the depreciation of the leased vehicle. Normally, your leasing agreement specifies the number of kilometers allowed per year. If you exceed it, you will be charged penalties for the excess kilometers. That’s why it’s important to assess your needs before taking out a lease, to ensure that your mileage limit is sufficient. During the lease, if you find that it isn’t, ask for your mileage to be adjusted.

  • Have major damage repaired before restitution

The best way to avoid the cost of repairing a leased car, which can represent a substantial sum, is to anticipate the return of the leased car by going to a garage that will carry out all the necessary renovations. For certain types of damage, such as dented bumpers, crumpled fenders or torn mirrors, check with your insurer to find out whether you are eligible for reimbursement. As a leased car must be fully insured, you can limit your expenses by making your insurance work for you.

  • Stick to maintenance recommendations

On return, the dealer checks that you have carried out all the maintenance work recommended by the manufacturer during the leasing period. On some leasing contracts, it is possible to include services without being overcharged, as all costs are included in your monthly payments. Don’t hesitate to take advantage of this option to save money.

  • Hand over all administrative documents

All the administrative documents given to you when you signed the leasing contract must be handed over to the supplier, in particular the maintenance and warranty history booklet and the vehicle registration document. Don’t leave out any of these important documents.

  • The end of leasing in due form

Leasing ends when you approve the final invoice from your garage supplier. If you don’t, you’ll continue to owe your lease payments. If you take out a new lease without ensuring that the old contract has been effectively terminated, you will have to pay double rent.

  • Is it possible to return the car before the end of the leasing period ?

The car must be returned at the end of the leasing contract. If you want to return the leased car early, you’ll have to pay the penalty for early termination of your leasing contract. If, for professional or family reasons, you wish to terminate your leasing contract early, it is financially more advantageous to transfer your leasing contract. Transferring your leasing contract involves finding a motorist interested in taking over your car and your contract. In the case of a lease with purchase option, you can also opt for a lease buy-back. LeaseTransfer assists you in this process of selling your leased vehicle before the end of the contract, thanks to its 100% accompanied service, and saves you the cost of penalties for early lease termination.

Buyback of car leasing in Switzerland

Lease buy-back must comply with the conditions specified in the contract. Depending on the type of lease, the leasing contract does not always allow the customer to make an early buy-back. However, it does appear to be possible in the case of residual value leasing. By buying back your leased vehicle early, you become the owner of the car and terminate the leasing contract. How do I do this ? Here’s how.

Early redemption of a lease with residual price

Leasing with residual price is a car financing method based on the idea of renting. When you lease a car, you are simply the lessee. The vehicle remains the property of the leasing company for the duration of the lease. Car leasing involves a finance company that buys the vehicle from a dealer and then, via the vehicle supplier, issues a financed leasing contract to the customer. As a result, most car leasing contracts will be based on the Swiss Federal Law on Consumer Credit (LCC). This means that the lessee cannot interrupt the leasing contract for any reason whatsoever without incurring early termination penalties. There are various ways to get out of a car lease without being penalized financially. In the case of early repayment of the lease, the lessee will have to proceed with the buy-back to free himself from the lease and terminate the contract.

Two ways to buy out a lease early

In most cases, it’s the lessee who buys back his or her lease when he or she can afford to pay the lease buy-back amount. Once the lease has been repaid, the lessee has full ownership of the car, which means that the lease is terminated and the lessee is no longer bound by the terms of the contract he or she signed earlier.
Occasionally, the lessee may find a buyer for his leasing contract who wishes to take over ownership of the vehicle, rather than simply taking over the leasing. In this case, the purchaser will have the option of buying out the lessee’s lease. No solvency conditions are required in this case, as long as the purchaser is able to pay the full amount due for the sale of the leased vehicle. The original lessee, on the other hand, is simply released from the leasing contract.

What is the procedure for early repayment a lease ?

Would you like to become the owner of your vehicle, or would you like to sell your leased car ? The first step is to check whether the operation is possible by consulting the clauses of the leasing contract. Generally speaking, there will be a clause giving the lessee the option of buying back the lease after the 3rd month of the contract, as well as an amortization table showing the residual value of the vehicle at the time you wish to buy it back. Please note: This table does not indicate at what price the vehicle can be bought back before the end of the lease. Without this clause, you will have to wait until the end of the leasing period. That’s why it’s important to read the leasing conditions carefully before signing. Once you’re sure you have the right to buy out the lease before the end of the contract, you’ll need to contact the leasing company that owns the vehicle to find out how much it will cost to buy out the lease. Some leasing companies may apply prepayment charges : These may be linked to outstanding monthly payments, late payment penalties, etc.

Impossibility of early redemption of the leasing : What to do ?

If early payment of the lease is not provided for in the contract, there is a way to get rid of your car lease without becoming the owner of the vehicle. Lease transfer is a solution authorized by leasing companies under certain conditions. Lease transfer involves finding a buyer for your leasing contract. The buyer will continue the leasing contract in your place, subject to the same conditions. You need to find a buyer by placing an ad on Switzerland’s leading car leasing transfer and buyback platform, specifying the description of the leased vehicle, the term of the contract, the monthly payments and the finance company. To validate the transfer, the leasing company will check the creditworthiness of the new lessee, and if the transfer is approved, the new lessee will have to pay the transfer fee, which averages between CHF 300 and 600, depending on the leasing company. As for you, you will be permanently disengaged from car leasing.

Can I change the term or the mileage during the leasing contract ?

Car leasing is a car rental contract that lasts, on average, between 24 and 60 months. The terms of the leasing are defined at the time of the contract and they allow to put a monthly price on the lease.

However, it can happen that during the course of the contract, the conditions defined at the beginning of the lease no longer meet the customer’s needs. It is therefore necessary for him to modify the terms of his leasing in order to avoid paying compensatory indemnities when returning the leased vehicle. But is it really possible to modify the duration and the mileage of a current lease ? If yes, how to proceed ? Here are some explanations.

Car leasing : Pre-defined leasing conditions

As a long-term vehicle leasing method, leasing has quickly supplanted buying a car among consumers. Indeed, many consumers are convinced of the practical and financial advantages of leasing a car. With leasing, you only pay for the use of the vehicle and you avoid certain constraints such as the discount in the value of the vehicle or its resale. Nevertheless, unlike the purchase, the customer is not the owner of the vehicle, which implies that he will not have all the rights on it. He will simply have the use of the car until the end of the lease. In fact, the lessee is only able to use the vehicle according to the conditions previously defined at the time of contracting.

The leasing contract contains a number of clauses relating to the use of the car, the most important of which are the duration and the mileage. These two elements have a direct influence on the amount of the leasing rent and must be scrupulously respected, otherwise the leasing company will suffer damages that will result in the payment of indemnities by the lessee. The duration of a lease allows the leasing company to smooth out the total cost of the leasing contract over a defined period. For example, a 5-year lease will have lower monthly payments than a 3-year lease. However, the longer the lease, the lower the residual value of the vehicle at the end of the lease. And the higher the mileage, the more the car will lose its value at the end of the lease. The duration and mileage of a leasing contract must therefore be respected by the lessee.

Modification of a leasing contract : Is it possible ?

When entering into a leasing contract, it is difficult to anticipate the actual use of the vehicle during the entire leasing period. Generally speaking, lessees make a rough estimate of their needs based on their habits. However, exceptional situations may arise during the course of the leasing, such as the provision of a vehicle by an employer, a transfer abroad or a long-term illness. The use of the leased vehicle will therefore no longer be in accordance with the terms of the contract, which makes it necessary to modify the leasing according to the customer’s needs.

If the vehicle is no longer used as often as it used to be, the mileage will be reduced and in the opposite case, the mileage will be adjusted according to the customer’s changing needs. This way, the customer avoids having to pay more than he or she should when the vehicle is not used as often and, in the opposite case, paying for overcharged kilometers when the leased vehicle is returned. It should be noted that in the event of exceeding the kilometre limit, the compensation charged by the leasing company can range from 3 centimes to more than 3 francs per kilometer exceeded, depending on the type of vehicle leased.

How to modify a leasing contract ?

If your situation has changed and you are no longer able to use your leased vehicle in accordance with your contract, you have the possibility to make a change to the car leasing. To do so, you will have to contact the leasing company and the supplying garage in order to fill in the form for the modification of the leasing contract. However, it should be noted that this is not always possible. Depending on the type of leasing, leasing companies and vehicle suppliers may decide not to allow changes to the leasing agreement or may impose strict conditions on any changes. For this reason, it is advisable to read the leasing contract carefully before signing it.

It is advisable to be aware of all the clauses contained in the leasing contract in order to avoid unpleasant surprises in the future. If the offer you receive does not allow you to change the terms of the leasing, you can continue your search to find a leasing that best suits your needs.

When you feel the need to review the duration and mileage of your car lease, you will make an amendment to the leasing contract. Please note that any modification of the leasing contract also implies the revision of the amount of the rent, both upwards and downwards.

What if the contract does not allow changes during the leasing ?

It may seem rare, but there are times when the leasing contract does not allow for a change in the term and projected mileage. In this case, you need to find a way out of a lease that no longer suits you. If you want to stop your car leasing, contact LeaseTransfer, the largest car leasing transfer place in Switzerland. Our platform will allow you to get rid of your car lease quickly, under better financial conditions than an early termination of the leasing contract.

CHANGING A CAR DURING A LEASE : WHAT SOLUTIONS ?

Many drivers who have taken out a car leasing contract ask themselves the question : “Can I change my car during the leasing period in Switzerland ?”. Although this is possible, it must be done in accordance with the terms of the leasing contract. As car leasing in Switzerland is constantly increasing and now accounts for more than half of all new car financing, there are various situations in which the current car lease can be terminated :

Why change your car during the leasing period ?

  • To change the car : Many individuals who want to change their leased car wonder whether it is possible to change the car during the leasing period in Switzerland. It is common to take out a new leasing contract for a newer, larger, more expensive or, on the contrary, cheaper vehicle in order to reduce leasing costs.
  • To meet new needs : A move abroad, a professional development that allows you to have a company car, a drop in income, a divorce… these are all situations that can motivate you to interrupt or change your car during the course of a lease.
  • To increase financial possibilities : Some drivers also decide to terminate their Swiss car leasing or switch to a cheaper leasing in order to increase their borrowing capacity. This is particularly true in the case of a property purchase.

Ways to change your car during a lease

There are several ways to terminate a leasing contract or change cars before the end of the leasing period in Switzerland. However, some methods are more advantageous than others, especially from a financial point of view. It is therefore important to choose the right solution.

Transfer of the leasing contract

This solution consists of transferring the leasing contract to a third party (individual or company). This method is simple and inexpensive and is generally the most advantageous for the motorist who wishes to transfer his car lease. LeaseTransfer assists you in transferring your leased car to a solvent third party with its 100% accompanied service.

Have the contract bought out by the supplying garage

Some contracts offer the possibility to have the leased car bought back by the supplier. Although not all garages offer this option, it will be easier to accept if you take out a new car leasing contract.

Buying the leased car

To change the car during a lease, it is also possible to buy the leased car in advance. However, you must have the necessary funds to repay the leasing amount. If you do not have the financial capacity to buy your leased car, LeaseTransfer will buy your leased car through its network of partners throughout Switzerland. You can then, if you wish, take out a new car leasing contract.

Cancelling a car lease

The private individual can also decide to return the leased car before the end of the contract in exchange for penalties for early termination of the lease. However, it is important to check with the car dealer beforehand whether you can change the car during the lease or whether you will have to terminate the car lease and take out a new one.

Changing cars during a lease is possible with LeaseTransfer

To the question “can you change your car during the leasing period”, LeaseTransfer answers yes! Our platform aims to bring together people who want to get out of their car leases before the end of the contract and other people who are interested in taking over used leasing cars. Thanks to our leasing transfer concept, car owners in Switzerland have the possibility to transfer their car leasing to a private person or a company before the end of the contract. This is a very advantageous option when moving abroad or changing your situation, but also when taking out a new Swiss car leasing contract. Before transferring your car lease in Switzerland, do not hesitate to contact a LeaseTransfer advisor. He will tell you which solution is best suited to your situation, so that you can quickly get out of your car lease under the best possible financial conditions.

LEASING WITH RESIDUAL VALUE IN SWITZERLAND

What is residual value ?

The residual value of a leased vehicle is the residual amount that must be paid at the end of the lease in order to become the owner of the vehicle. It is like a Eurotax rating, defined at the signing of the leasing contract and which remains unchanged until the end of the leasing period. The residual value is equal to the financed amount (purchase price of the vehicle including interest) minus the leasing payments.

How is a residual value calculated ?

All leasing contracts with a purchase option include an option to purchase the vehicle at the end of the lease. This allows the lessee of a vehicle who wishes to do so to become the owner at the end of the leasing contract. And although the majority of leasing contracts end with the vehicle being returned to the garage, it is important to understand what criteria are used to calculate the residual value of a leased car in Switzerland.

What is the relationship between the leasing amount and the residual value ?

A leasing contract has three main components: the down payment, which is usually optional, the lease payments with or without optional guarantees and the residual value at the end of the lease. The payment of an initial deposit reduces the amount of the lease payments. Similarly, the residual  value of the lease influences the amount of the lease payments. The logic is simple: the higher the residual value of the lease, the lower the lease payments… and conversely, the lower the residual value of the lease, the higher the lease payments. The residual value of a leased car is therefore an important criterion for estimating the monthly car leasing rent in Switzerland.

If the supplying garage believes that the vehicle will be sold at a good price at the end of the lease, the residual value of the lease will be rather high and consequently your lease payments will be a little lower. If, on the other hand, the vehicle you are leasing is less sought after or less popular on the market, the leasing instalments will be higher.

On what basis is the residual value of a leased vehicle calculated ?

As mentioned above, the calculation of the residual value of a leased car in Switzerland depends on several criteria such as the selling price, the age and mileage of the vehicle at the end of the lease, and its make and model.

The residual value of a new leased car is usually between 35% and 50% of the total leasing cost. It is estimated on the basis of the value that the vehicle is likely to lose after the leasing period. This percentage can be higher or lower, depending on the characteristics, make and model of the vehicle. The garage owner determines the amount of the residual value at the end of the lease based on depreciation tables and his experience. At the end of the leasing period, he is obliged to buy back the vehicle from the leasing company at the residual value specified in the leasing contract.

The advantages of buying back a leased car

Buying back a leased car in Switzerland that you have been leasing for years has many advantages. On the one hand, you only have to pay the residual value of the leased car, the buy-back value, which some garages even offer to finance with a new lease. And on the other hand, you already know your vehicle well, so that you will no longer have any secrets about its overall condition. If the residual value of the lease is low, you can become an owner at a low price. You can make a good deal by paying the residual value at the end of the lease to become the owner. Please note that the vehicle supplier is free to decide whether to sell the vehicle at the end of the leasing contract.

Lease a car in Switzerland with LeaseTransfer

Whether you want to find a customer for your Swiss leased car or take over a recent used car for a shorter period than a classic leasing, contact LeaseTransfer, the largest car leasing transfer place in Switzerland. Our platform will allow you to get rid of your leased car quickly. For leasing customers, LeaseTransfer’s car leasing ads will allow you to choose from hundreds of Swiss car leases to take over. You will be able to benefit from a recent leased vehicle with a contract already negotiated and in most cases a financial advantage when you take over the leasing.

CAR LEASING ABROAD

You have a car leasing contract in Switzerland and you want to go abroad. Is it possible to go abroad with your car lease ? Does it concern a holiday departure or a permanent departure from Switzerland ? The answer will depend on the duration of your trip abroad and your country of destination. If you are allowed to use your Swiss leased car abroad, you must meet certain conditions.

Is it possible to travel abroad with a leased car ?

Yes, it is possible to go on holiday with your leased car, but you must meet certain conditions. You are not the owner of the leased car. You cannot take the car out of the European Union without the prior agreement of the company that financed the leased car.

What are the conditions for going on holiday with a leased car ?

If you want to travel by car in Switzerland, to a border country or to a country belonging to the European Union, for a few days or a few weeks of holidays, no steps are necessary. For example, travelling with a leased car to Germany or taking your leased car to the south of France is no problem.

For destinations outside the European Union, you are obliged to inform the leasing company that owns the vehicle.

You must have an exit permit signed by the leasing company in the following two cases :

  • For any trip outside the European territory
  • For any journey of more than 30 days within the European territory. 


    Is it possible to live abroad with your leased car ?

    No, it is not possible to transfer a leased car abroad permanently, as the exit certificate is a temporary solution. It is better to get out of your Swiss car lease and take out a car lease once you are settled in your destination country.

    What to do with your leased car ?

    Moving abroad is not a valid reason to return your leased car without risking early termination penalties, which are often very high. To avoid the costs of terminating your lease, LeaseTransfer offers you a personalised solution that will allow you to concentrate on your move without your car lease becoming an obstacle to your departure from Switzerland.

    What solutions are available to you if you cannot export your Swiss lease abroad ?

  • You can return the vehicle to the supplying garage and pay the penalty for early termination of your Swiss leasing contract. This solution is clearly the least financially advantageous.
  • You can consider buying back the leased vehicle before the end of the contract. You will then have to clear the Swiss vehicle through customs in your country of destination and take care of the administrative procedures for putting it on the road. This solution is restrictive and not always financially advantageous.
  • You can find a buyer for the leased vehicle. Finding a buyer for your leased car is not always easy, it usually takes a long time and may hinder your departure from Switzerland. In this case, contact us! LeaseTransfer will find you a buyer quickly thanks to its nationwide network.
  • You are trying to find a buyer for your leasing contract. This is called a lease transfer. In this case too, LeaseTransfer, a pioneer in its field, will help you find a solvent buyer and assist you in optimising the procedures for taking over your leased car. This way you can prepare your departure from Switzerland with peace of mind.

    Conclusion

    Can I go abroad with a leased car ? Yes, for holidays, if you respect the conditions of the company that financed the car. For a definitive departure from Switzerland, it is preferable to contact us in order to find a buyer for your leased car and thus free yourself from it in the best possible financial conditions without hindering your move abroad.

CANCELLING A LEASE : WHAT YOU NEED TO KNOW

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.

EVERYTHING YOU NEED TO KNOW ABOUT CHEAP LEASING

In addition to allowing you to rent a vehicle while keeping the possibility of buying it at the end of the contract, leasing with trade-in value has a major advantage : Its very attractive price. With lease payments starting at less than 150 francs per month, leasing has succeeded in reinventing car ownership.

Cheap leasing in Switzerland – a solution with many financial advantages

In the space of a few years, car leasing has become the leading method of financing new and used cars. If this solution is attracting a growing number of motorists, it is mainly due to its many financial advantages :

  • A car with no deposit : If leasing is cheap, it is above all because it does not necessarily require a deposit. Many leasing companies allow you to lease a vehicle without a down payment.
  • Reduced rental payments : Benefiting from a cheap leased car means that you can take advantage of lower monthly payments than with a conventional loan, for the same model. Why ? Simply because leasing involves financing only the use of the vehicle and not its total cost
  • Adaptable monthly payments : By leasing a car, the motorist can adapt the duration of the lease and the annual mileage in order to increase or decrease the amount of rent to pay.
  • An optional deposit : When taking out a leasing contract, the motorist does not necessarily have to provide a deposit. This is an important advantage for those who do not have substantial savings.
  • Attractive taxation for professionals : Cheap leasing is also possible for companies. In addition to having a potential impact on business tax, leasing avoids having the vehicle seized in the event of the company’s default. It should also be noted that the car is not included in the company’s assets and therefore has no impact on depreciation or fixed assets.

    Cheap leasing : Financing that makes it easier to buy a car
     

    The economic attractiveness of leasing has a double consequence. It allows easier access to cars and offers the possibility of upgrading. These are advantages that motorists are sure to appreciate :

  • Easier access to cars : Thanks to leasing, motorists have more ease in using and eventually buying a car. Unlike a cash purchase or most loans, car leasing does not necessarily require a capital contribution or the immobilisation of savings. In addition, leasing has a lesser impact on borrowing capacity because the rental payments are generally lower than for a loan for the same vehicle.
  • Easier upgrading : Thanks to lower monthly payments than with a traditional loan, leasing allows you to take advantage of a superior model for the same monthly payment. For both professionals and private individuals, this move upmarket is interesting in order to meet specific needs or to treat yourself.
  • A wide choice of models : Although leasing often concerns new vehicles, most second-hand cars are also eligible. At LeaseTransfer, you have a wide choice of used car models to lease. This means that everyone can find the cheapest lease to suit their needs.

The main reasons why leasing is cheap are the low monthly payments, the possibility of leasing without a deposit and the possibility of adjusting the amount of the lease payment. All of these features make it easier for individuals to access cars and to use higher quality vehicles than with a conventional loan or cash purchase.

USED CAR LEASING IN SWITZERLAND : A GOOD SOLUTION

In view of the dynamism of vehicle leasing, a new type of offer is beginning to develop: used car leasing. Now is the time to find out about the features and benefits of used car leasing.

Everything you need to know about used car leasing

Leasing recent second-hand cars

Contrary to what you might think, used car leasing almost exclusively concerns recent models. Most used car leasing companies, like LeaseTransfer, a pioneer in this field, only offer recent vehicles, generally less than 48 months old and with a mileage of less than 50,000 kilometers.

Vehicles with a certified origin

Most of the vehicles offered in used leasing come from leasing to be returned, from leasing returns or from exhibition models. They are usually first-hand vehicles. This gives the motorist the assurance that the car has been used very little.

Leasing a used car allows you to :

  • Reduce your monthly payments : The first year is when a vehicle suffers the greatest discount. By opting for a second-hand car lease, you do not have to bear this loss in value and can therefore reduce your monthly payments
  • Reduce the financial effort : As the motorist does not have to bear the loss of value in the first year of the vehicle’s life, the overall cost of second-hand leasing is much more attractive. It is also an ideal solution for leasing a car without a deposit, or even for reducing the amount of the trade-in.
  • Take advantage of a valid manufacturer’s warranty : The vehicles offered for trade-in leasing are, in the majority of cases, recent vehicles still under manufacturer’s warranty. In some cases, maintenance services are included. This is an undeniable advantage when leasing a used BMW, Mercedes or any other make.
  • Change cars regularly : As the cost of a used car lease is generally lower than that of a new car lease, it is possible to change cars even more regularly. This is because the financial effort required will be less, allowing you to renew your vehicle more often.

Responding to a strong demand from motorists, used car leasing in Switzerland allows you to benefit from a recent vehicle, guaranteed and at an advantageous price. This means that you can drive with complete peace of mind and change your car even more regularly.