Can I buy the car at the end of the lease?
Once a leasing contract is about to end, customers are presented with various options of how to proceed: Give back the car, make an offer to buy the car, or extend the lease on the current car.
Some customers will request a written confirmation at the beginning of the leasing contract that they will be allowed to buy the car at the end of the lease. While some leasing companies offer some kind of written statement, an outright confirmation of the right to purchase the vehicle is not legally allowed under the umbrella of “leasing”.
Why can a customer not legally receive the right to buy the car?
Making a legal agreement with the customer before the end of the lease that grants them the right to buy the car at the end of the leasing contract would no longer be legally considered leasing. Instead, this would now be classified as a consumer credit. This type of financing agreement has other rules and requirements than leasing, according to the Federal Law on Consumer Credits (FLCC; in German: KKG). Gowago does not offer such a product on its platform, as customers are signing leasing agreements.
Why do other leasing providers give customers an offer to buy the car at the end of the lease?
In Switzerland, it is possible to request a purchase offer for the car at the end of the leasing contract when signing the contract, but this does not grant the complete right to purchase (for the reasons explained above). Customers must ensure that they do not sign a consumer credit agreement, which works differently from a leasing contract. Some garages and dealers offer a written confirmation or waiver, which supposedly confirms to customers that they are allowed to buy the car for its residual value at the end of the contract. However, this is theoretically an obligation, but not a right, because it is linked to the condition that customers definitely buy the car from the bank at the end of the leasing contract. Therefore, such a waiver is considered an intention, but not a right.
In real life scenarios: Why is it not possible to have such an agreement?
Speaking in legal terms, customers would be obligated to buy the car in the future. Let’s say somebody signs such an agreement at the beginning of the contract. 48 months later, at the end of the lease, their financial situation has changed. For example, they now have kids, bought a house, have invested in studies, or for other reasons have less money. So the customer decides not to buy the car at the end of the lease. However, because they signed a contract stating they would buy the car at the end of the lease, they are now obligated to buy it or face potential legal problems. Hence, that such written agreements are not legally allowed to be issued are there for the protection of the consumer so that they do not slip into over-indebtedness.
Are Swiss leasing laws different from those in other European countries?
In France, Germany and Austria, as well as in other European countries, there are some financial products also called leasing that allow customers to have the purchase option right. However, these countries have different legislation and do not follow the Federal Law on Consumer Credits (FLCC; in German: KKG) and thus cannot be used as reference.
Is it possible to get a letter of intention from Gowago to buy the car for the residual value at the end of the lease?
At Gowago, we are granting you the right to request an offer to purchase the vehicle at the end of the leasing. If you wish to receive a letter that states this in writing, simply ask your Gowago Advisor, and they will provide it to you.