+372 51 991 827

About the price of a vehicle during termination the leasing contract

There are very often disputes rising about price of a vehicle if the leasing contract has ended – lessee is selling the vehicle with the lower price as the market price is and demands the price difference between sales price and lease payments to be compensated by the lessee.

Estonian Supreme Court has become to a conclusion that lessor has an obligation to make everything possible to obtain the best and fastest solution in case of returning the leased object before prescribed time. Also, in case of cancellation of a contract the market price of an object must be taken into account. Therefore, the sales of a vehicle with the price significantly lower than market price, is not justified. Chamber of Supreme Court have noticed also that acceptable and reasonable price difference could be no more than 10% of the market price. If the vehicle is sold significantly lower than market price the lessor must prove and explain why the sales with a higher price was not possible.

However, in addition to receiving information about initially determined selling price the lessee (guarantor) has the right to receive information in every case of price reduction – the lessee (and guarantor) must be informed about these circumstances so he/she can take it into account and can participate in a selling process if needed (for example suggest the buyer).

In conclusion we must say that lessor must do everything to diminish the financial loss to lessee from the low sales price. The situation where lessor sells the vehicle with significantly lower price than the market price is, and then according to conditions set up in leasing contract, demands the compensation of the price difference from lessee or from guarantor, is not acceptable. However, the situation is even more unjust if the returned vehicle will be purchased with significantly lower price by a person who is connected with the leasing company and after that the vehicle will be sold once again with the price that corresponds to the price established in the market.

Leave a Reply

Close Menu