Taking over a running lease contract: what to watch out for
Taking over a running contract means: a car that is already on the road today, at a price fixed earlier, for a term shorter than a new lease. That is attractive — provided you check what you are taking on.
Why taking over can be attractive
A new lease typically runs 48 to 60 months. A takeover runs only the remaining months, often between one and three years. For a business that does not know what it will look like in four years, that is a big difference.
On top of that, the monthly payment was fixed earlier, sometimes in a period with different rates or different tax treatment. That can work in your favour.
And there is no waiting time. The car is there. With a new order you often wait months.
What to check before you sign
The monthly payment, and whether it includes or excludes VAT. A difference of a fifth is easily made when that is unclear.
What the contract includes. Servicing, tyres, insurance, roadside assistance, replacement car — a contract without servicing and tyres costs you more each month than the price suggests.
The mileage allowance and the current odometer reading. Those are two figures you have to read together. A contract of 25,000 km per year on a car that is already 20,000 km over is a bill that lands in your name at the end.
The condition of the car. Damage beyond normal wear is settled on return. Go and look, or ask for photos of all four corners, the wheels and the interior before you go further.
The remaining term and the end date, and what happens then: return, or is there a purchase option.
How the transfer works
You contact the current lessee and you reach an agreement about the car and the terms.
Then the transferor submits the request to their leasing company. It assesses you as a new customer: company number, annual accounts or a recent accounting position, and the age of your business. With a recently incorporated company it may ask for additional guarantees.
If it approves, it draws up the transfer and both parties sign. From that moment the contract runs in your name, on the existing terms.
Expect a few weeks between the agreement and the signature. Never start using the car before the transfer is formally finalised: until then the contract is not yours, and if anything happens you have no ground to stand on.
What to be careful about
Never pay anything before the leasing company has confirmed the transfer in writing. A deposit paid to a stranger for a contract that has not been approved is money you lose if the approval does not come.
Always ask to see the contract itself, not just a summary. The terms on kilometres, damage and end of contract are in there, and you take those over with it.
Be suspicious of a price that looks far too good. There is usually a reason: a mileage allowance that is nearly used up, damage, or a contract that still has to run almost in full.
Frequently asked questions
Can I take over a lease contract as a start-up?
You can, but the leasing company assesses you the way it would assess a new customer. With a recently incorporated company without annual accounts it often asks for additional guarantees, such as a deposit or a personal guarantee from the director. Check this with the leasing company in question before you invest time.
Do I need to have a company?
For contracts in a company name, the leasing company as a rule requires a company on the taking-over side as well. Whether a sole trader is enough differs per leasing company.
What happens at the end of the contract?
That is in the contract you take over. With operational leasing you usually return the car, and there is a settlement on kilometres and damage. Some contracts provide a purchase option. Check this before you sign, because you inherit those terms.
What does it cost to take over through leasechange.be?
Nothing. Searching, getting in touch and the takeover itself are free. Whatever the leasing company charges in administrative costs for drawing up the transfer is separate from us.