We are currently receiving increasing numbers of inquiries from lessees who have concluded residual value leasing contracts, some of which even include an additional right of first refusal for the lessor.
Many report that they originally didn't want to enter into a residual value lease, but rather expected a mileage lease. They feel misled by the information provided on brokers' and sellers' websites.
These websites and advertisements advertise favorable leasing terms, often with reference to mileage. This leads consumers to believe it is a mileage lease, since with a residual value lease, the mileage is only relevant for the calculation and is not billed based on kilometers. Often, there is also no indication that the lease is a residual value lease, which leads consumers to believe it is a mileage lease.
Many lessees only realize during the digital ordering process that they have entered into a residual value lease. In many cases, this only becomes clear much later.
What is residual value leasing?
With residual value leasing, the customer bears the risk that the vehicle will be worth less than the previously estimated residual value at the end of the lease term. The lessee guarantees this value at the end of the lease term. If the vehicle is worth less, the lessee must pay the difference. With a put-down lease, the vehicle must be purchased at the end of the lease term at a predetermined price at the lessor's request.
Residual value leasing is often discouraged for private consumers due to the high and difficult-to-calculate risk. This assessment is also shared by institutions such as Stiftung Warentest ("Finanztest has always advised private consumers against residual value leasing").
What can lessees do?
Lessees can have their claims investigated to determine whether they have been misled by information provided by brokers, car dealerships, or leasing companies regarding the terms of the contract. In such cases, they have the right to contest the contract. They also have a statutory right of withdrawal. In the event of delayed delivery, they also have the right to withdraw from or terminate the leasing agreement.
For a comprehensive review of their legal options for terminating the contract, lessees should consult a lawyer specializing in banking and capital market law who specializes in leasing contracts.
