The leasing contract is an agreement between three persons: the equipment supplier, the user or lessee and the financial institution. The object of the lease is a rental contract with a promise to purchase. Unlike a simple lease contract, the lessor’s obligations are less in leasing. This type of act has several advantages, especially from a financial point of view. However, termination before the end of the term can be costly and give rise to financial penalties. To avoid this, contract transfer can be a good alternative.
Withdrawal of the rental contract: is it possible?
The new leasing contract has been concluded and there is nothing to prevent the new car from being driven with pleasure until the end of the agreed leasing period. This is at least the ideal case. But what happens if – for whatever reason – you want to return the car earlier, i.e. terminate the leasing contract? Is that even possible?
The answer to this question is: unfortunately, in most cases it is not, unless you pay a significant part of the remaining monthly payments. There are, however, interesting and sensible alternatives if you absolutely want to withdraw from a leasing contract.
The exception is the exception to the rule. Private individuals generally have a 14-day right of withdrawal in the case of leasing – so they can make use of this right of withdrawal within two weeks of the conclusion of the contract. However, if this period has already elapsed, or in the case of a commercial or company lease, there is generally little opportunity to simply terminate the contract prematurely and withdraw from the lease. Contrary to public opinion, vehicle defects are not a reason for termination, especially since the dealer must first be given the opportunity to rectify the defects. The same applies to financial reasons: Even those who are suddenly unable or unwilling to pay the lease installments due to an increase in other expenses or a change in their professional situation cannot therefore simply terminate their lease contract unilaterally.
If the lessee wishes to terminate the lease contract and leave nothing to chance, he can of course contact a lawyer who specializes in this area. This lawyer can check whether there are serious reasons in the particular case for terminating the contract. As a rule, this approach will not be successful, especially since the legal examination will of course entail costs.
Taking over leasing is often a sensible alternative
But if you are not satisfied with your lease car or if, for example, you want to terminate the lease contract for financial reasons, there is a simple alternative that is becoming increasingly popular. By taking over the lease, the current lease can be transferred to another interested party. This party takes over the original terms of the contract and pays the remaining leasing installments from the time the vehicle is handed over until the end of the term. The “remaining kilometers” are also virtually transferred to the new lessee and can therefore be used by him. The previous lessee, on the other hand, gets rid of the contract – and the associated rights and obligations – quickly and easily. This means that he can either rent a new vehicle as he wishes or save the corresponding costs.
The biggest obstacle to acquiring a lease is usually finding a potential buyer for the lease, i.e. the new lessee who concludes the current car lease contract. However, there are sites to help you quickly find a suitable candidate for buy-back.
If you are currently thinking about how to terminate your current lease, you should also consider returning the vehicle through a lease transfer. Although it is generally not possible to withdraw from the lease, finding a transferee is often the right solution.