The transfer value is the amount you pay if you want to take over a leased object before the end of the term. This amount is usually too high for you to pay out of your own pocket. Therefore, it is advisable to use credit financing for a permanent purchase, with which you can buy the vehicle immediately.
The term redemption value describes the amount payable if a leased vehicle is to be transferred to the Company's own ownership during or at the end of the lease. The redemption value is made up of the market value of the vehicle and the agreed interest and decreases during the term of the contract due to interest and principal payments. The redemption value cannot be determined in advance because too many factors play a role, such as Mileage and condition of the vehicle. The lessee can ask the lessor for the value if he wants to take over the vehicle. In some cases, it may be worthwhile to determine the transfer value via a private or car loan to finance to reduce the monthly burden.
Replacement value: influencing variables
What you can learn here
To determine the replacement value play
- Mileage,
- the general condition of the vehicle,
- as well as the duration of the contract and
- the frequency of maintenance
a decisive role.
The redemption value is usually determined by experts, taking into account the influencing factors mentioned above.
The redemption value must be requested
If the lessee wishes to take over the vehicle, he can ask the lessor for the value. Especially at the beginning of the contract, the Residual value and the redemption value noch differ greatly from one another. The market value of new cars falls particularly quickly during this period, as can be seen with daily registrations or annual cars. However, since the lessee has only paid a few installments by then, the Redemption sum still much higher than the actual market value of the vehicle. This is also referred to as the discounted present value. Over time, however, the residual value and redemption value are increasingly converging.
