Leasing

Transportation, Travel and Trips
1
Hi!

I have a question about car leasing.

As I've been researching the topic an important aspect seems to be having an explicit right to buy the car at the end of the lease at the residual value stated in the contract.

Would someone be able to tell if there's any specific French (Vaud) terminology or a kind of individual document to look for with regards to this very nuance?

Also, are there any other most obvious "traps"/caveats to be aware of when signing a contract?

Thanks!

2
Hi,

Normally you have the option to buy the car at the residual value after the leasing period, you can also refinance the residual value if you wish.

As far as I know this is not an obligation on the car leaser, however I know a work colleague who requested adding such a condition into his leasing contract, which they accepted and hand wrote it and counter signed it on the leasing template. They simply added a condition that he can (or will, I am not sure) buy the car at the RV by the end of the leasing contract. This was in the German side.

Hope this helps.

3
I’m not sure why you are so worried about this. The dealer would rather you bought the car, rather than have to go to the trouble of finding someone else to sell it too!

4
That may be right, however if you’re well under your allocated mileage then it’s a no brainier for the dealer to want it back since you’ve subsidised their profit.

Another scenario would be a global increase in used car prices as we saw during COVID. With limited new car production, suddenly your well taken care of 36 month old car looks very attractive to the dealer, and according to the law he has first right of refusal.

So get it in writing.

5
Right now dealers are happy to take back the end of lease as they need cars to sell. Before you sign the leasing deal ask about buying out at the end of the lease.

6
Tesla made a killing in the US getting all the early Model 3s leases back - and essentially selling them again at the price of a new car.

I don't think this will ever happen again at that scale, though.

(famous last words)

7
Tesla should repeat that with Hertz's misfortune i.e. a $245 million write off for the rental company in selling off its Model 3 inventory.

8

Hi, first let me to apologize for creating 2 threads on a similar topic, we’ve discussed it and other options a bit more comprehensively in another thread: https://www.englishforum.ch/transpor…valuation.html

In short, as for leasing the big car selling/leasing franchise where I was considering to lease a car, refused to modify the contract (ie. to replace an excplicit denial of the right to buy with the actual right to buy =) ) I decided to explore the cash option. More in the thread above…