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Leasing transfer: how does it work?

Le monde automobile 01/09/2021 48

Leasing transfer: how does it work?

What is the leasing transfer?

Following the rapid growth in the use of leasing contracts (+ 17% in 2018), leasing transfer is a practice that is developing. It allows the holder of a leasing contract to withdraw from his contract by transferring his lease to a buyer. The latter thus becomes the renter of the vehicle and takes over the rental contract for the vehicle under the conditions for which it had been signed.

Why end a leasing contract?

The leasing contract is a very inflexible model and there are few clauses which allow this contract to be terminated without having to incur significant administrative costs. Indeed, this model does not adapt to the vagaries of life.

The holder of the leasing contract may have to deal with:

unforeseen family events: a birth, a divorce, difficulties in paying the rental or the loss of a job or quite simply the desire to change car

Leasing transfer is thus a solution to terminate your rental contract. Is this the only possible outcome?

Leasing transfer: the cheapest alternative

To no longer hold a leasing contract, several possible outcomes are:

a transfer to a third party: the purchaser must then reimburse the entire amount of the vehicle to the holder organization. This option is not cost effective but practical if you want to get rid of the vehicle quickly. a leasing transfer: a more attractive solution for the purchaser, which consists in transferring the rental contract to another individual or professional

The second solution is clearly more advantageous because it minimizes costs. It has advantages for both the transferor and the transferee.

Transferring your leasing: a solution for the transferor and the transferee

Advantages for the transferor Advantages for the transferee No car to be reimbursed Duration of the engagement contract shortened No costs to be paid to the financial institution Contract already negotiated when the transferor takes effect Possibility of changing car by subscribing to a new contract or by opting for a more suitable means of payment No initial contribution or security deposit Litigation with the financing body avoided if the holder can no longer pay rent Possibility of obtaining the vehicle at the end of the contract if it is a leasing contract with an option to purchase (LOA)

Carry out a leasing transfer in a few steps

Leasing transfer announcement

The first step is to leave a leasing transfer announcement online. It is difficult to find a buyer of a leasing contract. Thus, using a website allows you to maximize your chances. On the internet, there are several sites offering this type of service. A company can even decide to buy out a leasing contract.

Finding a buyer

When a potential buyer presents himself, he must be put in touch with the person holding the leasing contract. The two parties agree on the conditions for taking over the leasing contract. The transferee must accept the contract as presented. A request to modify the contract with the financial institution has little chance of success if it is not accompanied by a real reason.

Inform the leasing company

Only from this moment the company owning the vehicle must be informed that a leasing transfer will take place. The contract is called “tenant substitution”. It must be accompanied by all the documents relating to the new tenant: identity document, proof of address, RIB, last three payslips, tax notice…

Wait for the agreement of the leasing company

Once the request has been made and sent to the funding body, the file will be processed and all you have to do is wait for a final agreement. The organization may charge additional filing fees. They will then be paid by the transferor.

You want to sell your car in LOA? Know that it is difficult to sell your second-hand car while being under a leasing contract. The administrative formalities are longer and more complicated, which can set back the buyer. Kyump / Capcar supports you in your process and takes care of all the administrative part for you!

Sell my car in LOA

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