Replacement value: The most important things explained in under 4 minutes


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.

The redemption value is the accounting value of an asset, for example, the car, during the contract period.. The redemption value often differs from the actual market value. This is due to the difference between monthly repayment by a leasing rate and actual depreciation.

Replacement value: influencing variables

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.

Redemption certificate

The redemption certificate is a document that shows the remaining outstanding debt on a certain date and the prepayment penalty calculated for it. This document allows you to apply for a loan from your current bank or another bank for the purpose of debt restructuring. This means that you can use the loan amount to pay off your existing debt and benefit from potentially more favorable terms or interest rates. The discharge certificate is therefore an important document that will help you to make the process of debt rescheduling go smoothly.

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