Who bears the residual value risk with a Financial Lease?

Who bears the residual value risk with Financial Lease?

With a Financial Lease construction, in most cases the entrepreneur bears the residual value risk of the vehicle. This means that you, the entrepreneur, are responsible for the value of the vehicle at the end of the lease contract.

At the end of the contract term, you have two options:

1. You can choose to return the car to the leasing company. In this case, the residual value risk is for the leasing company.

2. You also have the option to take over the car for the agreed residual value, which is often determined at the beginning of the contract. This gives you the flexibility to keep the car if it still suits your needs.

Sharing the residual value risk gives business owners the freedom to take advantage of any increases in the vehicle's value. It also gives you the option to return the car if the residual value is disappointing, so you are not stuck with the vehicle.

Important to know: The residual value risk of a Financial Lease lies with the customer. The customer becomes the legal owner of the car after the contract. In doing so, he takes the risk that the value of the car will be higher or lower than what he himself expected. The more economically you use the car, the higher the residual value will be.

Do you have any questions about the residual value risk or would you like more information about Financial Lease? Do not hesitate to contact us. Our team is ready to assist you.