Buying a lease before the end of its term

Leasing—whether private or commercial—is a convenient and popular financing solution in Switzerland. However, circumstances can change: shifting needs, payment difficulties, purchase opportunities, or simply the desire to regain control of your vehicle or equipment.

In such cases, an early lease buyout can be a strategic alternative—provided you understand the rules, costs, and benefits.

🔄 What Is an Early Lease Buyout?
An early buyout lets you settle the remaining lease balance before the scheduled end date in order to:

• Become owner of the vehicle or equipment
• Sell the asset freely
• Exit a contract that has become restrictive or unsuitable
• Avoid burdensome future installments
• Switch vehicles or equipment sooner than planned

Essentially, you pay off the remaining capital plus any contractual fees.

📊 What Does the Buyout Cost Include?
The total amount required to terminate a lease early depends on:

• Outstanding principal (the sum of future unpaid installments)
• Interest not yet earned by the leasing company
• Any early-exit penalties or fees
• In some cases, the residual value if you intend to purchase the asset

You can request a detailed buyout statement from your lessor at any time, in writing or via your online account.

⚠️ Can You Sell a Leased Vehicle?
No—while the lease remains active, the lessor (bank or leasing firm) retains ownership. To sell, you must first buy out the lease or transfer it to a new lessee.

That’s why an early buyout is appealing: you become the legal owner and can sell, trade, or keep the asset without restriction.

💡 Why Consider an Early Buyout?

• You want to change vehicles before lease expiry
• Financial hardship makes lease payments unaffordable
• You can sell the asset at a good price and use proceeds to settle the lease
• You’ve secured cheaper financing than the lease rate
• You plan to consolidate debts, including this lease

✅ Early Buyout Options

1. Refinance with a Traditional Loan
   You can often replace the lease with a personal or commercial loan—offering more flexible terms and no requirement to return the asset. This lets you:
   • Avoid depreciation losses from early return
   • Control the sale process yourself
   • Potentially lower monthly costs by negotiating rate or term
2. Work with a Specialist Like MultiCredit
   A financial partner can:
   • Buy out the lease on your behalf
   • Offer a more advantageous refinancing package
   • Bundle the lease buyout into a broader transaction (debt consolidation, financing a new vehicle, etc.)

📋 Key Points Before You Proceed

• Always request a clear, itemized buyout statement
• Review your lease agreement’s terms (fees, notice periods, penalties)
• Compare the total buyout cost to the asset’s current market value
• Evaluate whether a replacement loan might be more cost-effective
• Perform at least one complete simulation before deciding

🚗 In Summary
An early lease buyout is a flexible, strategic path that lets you regain control of your finances and assets. When planned and financed correctly, it frees you from a restrictive obligation while optimizing the management of your mobile assets.

An article by Munur Aslan, Director of MultiCredit