Hello everyone,
I have leased a motorbike for 2 years and currently I am in the last year of the lease. I have signed up for 10.000 km a year, however the motorbike has below 6000 km and by the time of the 2 years, the motorbike will have maximum 10.000km.
That essentially means, that the depreciation of the bike has been overestimated (from my side) over the leasing period by 10.000 km. I have two options here :
1. Give back the bike or 2. Purchase the bike for the residual value that has been agreed (say its 5000 CHF).
I am facing the following skepticism though:
Technically, in a leasing agreement, the person who "owns" the vehicle, is not me but the lessor. I would like to pay 5000 CHF to buy the bike but the lessor might reject that , because it could be in their best interest to keep the motorbike and sell it at a higher rate since the bike does not have 20.000 km as agreed).
Can anyone provide more input on the above? Would such a scenario be possible in case such a conflict occurs?
I would appreciate your input.
Does your contract say that you can buy it back at the end of the lease?
So I don't see a problem why lessor would reject your offer to buy at the predetermined residual value price. When I bought my vehicle back from AMAG, the residual value in the contract was set at CHF 20k, and the vehicle was still worth at least CHF 35k.
Whether they can do it if they really wanted to, unfortunately I don't know.
If it's in your contract that you have the right to buy it at the end - you buy it at that predetermined price (it doesn't get "reevaluated").
In fact they most likely won't even care for any conditions of the vehicle (state or km or whatever) if you tell them you want to buy it.
The mileage only matters if you are returning it (i.e. you pay more if you overrun it, you don't get money back if you went under )
Thank you for your replies !
Just out of curiosity, in case it was not in the contract, would I have to go in circles around my neighbourhood for 10.000 km before I give back the moto?
They'll be more than happy to take it off your hands having more value than what they initially accounted for.
So, no.
Typically the garage has first refusal on leasings.
During the past couple of years, with the crazy market increasing used car prices, some smaller garages took the opportunity and exercised their option and got cheap cars at end of their leases.
Bigger and more reputable garages did not, and will not, as they understand that for many of their customers leasing is just a financing tool and a lot of people lease with very low residuals as they're trying to slowly amortise the owed amount. Last year I bought out a car with its residual being approx half its actual market value.
Garages that value their customers and want repeat business will not shaft you on that. Everybody can fall on hard times though, so in the end it is always a risk that you will run with some leasing contracts. One more reason to do financing deals with stable businesses only and try to hedge that worst case scenario as much as possible.