Leasing

Leasing allows a user to use an asset, such as a vehicle, machine or equipment, for periodic payments while ownership usually remains with the lessor. Swiss law does not treat all leasing uniformly; the contract may combine elements of rent, sale, credit and services. Financial leasing allocates economic risks and maintenance duties differently from operating leasing. Consumer leasing may trigger protective credit rules, disclosure duties and cancellation rights. Important issues include early termination, residual value, insurance, default, transfer of ownership and the treatment of the asset in insolvency.