Contract for lease of a vehicle for Switzerland

Use this contract:

• To hire a vehicle of any kind, whether you are the owner or the lessee (sublease).
• Whether the rental is for a specific day or for a long fixed or indefinite period.
• Whether the hire is to private individuals or companies, for business or pleasure.
• Whether or not you wish to include or charge certain additional costs.

Safeguard your lessor’s rights with the following terms: 

• Indication and acceptance of notified defects, current mileage and relevant technical documentation. 
• Unambiguous specification of additional taxes and charges and their invoicing and processing. 
• Obligation on the lessee to carry out tasks prior to return, such as refuelling or cleaning. 
• Stipulation of a renewal period or minimum duration for which the rent must be paid by the customer, with payment in advance. 
• Limitation of liability to the amount of rent actually paid, whatever the defect. 

Benefit from the following options as a lessee: 

• Obligatory technical inspection by the lessor for used cars, and other preliminary tasks. 
• Flexible choice of rental payment method and capping of charges per rental period. 
• Possibility of early termination before term, or for irreparable defects. 
• Obligation of the lessor to compensate for any additional damage caused by default or delay. 

Lease agreement

A lease agreement template allows to draft a legal document signed between a lessor and a lessee to regulate the obligations, rights, and legal risks associated with the renting of any type of vehicle. Using our lease contract example it’s possible to minimise the risks and ensure payment of the regular rent instalments.

Lessors make a lease agreement: 

• To conclude a rental of a new or used vehicle (for example: an automobile, utility truck, or motorbike).
• To perform a domestic or international lease, regulating terms of delivery and return, restrictions, limitations on liability, and quality inspection period.
• To establish the terms of payment and coverage of ancillary costs, such as VAT, customs duties, or transportation insurance.

Key aspects of a lease agreement 

• The lease agreement template is often used by a company or business, as well as by individuals wishing to rent out a used car. 
• The document must contain a clear description of the vehicle, known defects, delivery terms, price, and payment terms. 
• The lessor usually limits or excludes liability, provides for a shorter quality inspection period, and specifies when the risk passes. 
• Lessees usually demand longer warranty periods, deterrent penalties for delay, and shorter cancellation periods in case of defects or failure to meet delivery dates. 

Seven tips on a lease agreement 

Our lease contract example protects the lessor’s legal interest with the following options: 

• Indicating any known defects, the date of the last inspection, and the mileage of the used auto. 
• Indicating any additional costs (for example: taxes and customs duties) that may be passed on to the lessee in addition to the rent. 
• Requiring a down payment guarantee deposit. 

• Stipulating longer termination notices during which the rent should be paid. 
• Restricting unauthorised use or subrenting of the leased vehicle. 

Our lease contract template protects the lessee as well and offers advantages such as: 

• Shorter termination notices without penalty and immediate termination option for defects. 
• Additional warranties, lessor’s liability for defects and delay, as well as other legal remedies. 

Create a lease agreement with AdminTech 

Using AdminTech online document builder and a lease agreement template, you can simply fill in the necessary information, and the document will automatically adjust to your specific needs.  

A professional lease agreement allows to cover the following information:  

• Parties’ contact details and identification. 
• Description of the vehicle and its characteristics. 
• Mileage, known defects, and preliminary technical control for used cars. 
• Conditions regarding the recovery or delivery of the vehicle to the lessee. 
• Instructions on how and when the car should be returned to the lessor. 
• Rent amount, taxes, ancillary expenses, and guarantee down payment. 

FAQ on a lease agreement 

What’s the difference between a lease agreement and a sales agreement?  

A vehicle lease agreement by AdminTech provides lessors with an opportunity to create a professional document to regulate all rights and liabilities of parties in relation to the eventual rental of a vehicle. 

A sales act, on the other hand, transfers the property to the buyer, even if the price is to be paid in instalments over a long term. 

What compensations is the lessee entitled to in case of defects? 

In the event that the rented vehicle shows defects, the lessee is generally entitled to one of the following remedies, depending on which is the most appropriate in the circumstances: 

• Proportional reduction of the rent. 
• Repair of a vehicle at the lessor’s expense. 
• Temporary or definitive replacement of vehicle by an identical or similar model. 
• Termination of lease. 

In our example of a lease agreement for a car, parties typically agree to accept any known defects upfront without reservation through a specific clause, especially for used vehicles. 

Can a vehicle lease be done in verbal form?  

Swiss law does not require a written form to make a lease agreement, but it is advisable to use a car lease contract template for the following reasons: 

• The only tangible proof of parties’ terms. 
• A solid proof of value for customs authorities and tax administration. 
• A necessary title of use to register the number plates on the vehicle. 

Can the lessee terminate the lease prematurely? 

The lessee may cancel a lease under the following circumstances: 

• Undisclosed defects that cannot be reasonably eliminated.  
• Newly discovered defects that render the car unusable, without fault on the part of the lessee. 
• The lease becomes impossible to continue due to force majeure (for example, the vehicle is stolen by a third party).  
• As per the specific terms of the agreement that allow to do so in certain situations. 

Is the lease of a vehicle exempt from VAT in Switzerland? 

A domestic lease of goods is not subject to value-added tax in Switzerland if it is rented by an individual, as well as by any company or business not registered under VAT status. 

The VAT of 8.1% shall be due, however, in the following events: 

• Importation of vehicles from abroad. 
• Lease of vehicle by a business registered with VAT status. 

The lessor must state the amount of VAT on the invoice or indicate a specific clause in our lease contract example. The amount may be stated as net plus VAT or gross (including all taxes). 

Can the lessor recollect the vehicle for default of payment? 

The lessor may enforce recollection of the vehicle upon termination of the lease agreement for default of payment. However, such actions should be carried out with respect to public order and applicable legal procedures, usually with the solicitation of a professional lawyer. 

The lessor is prohibited from forcefully recollecting the vehicle himself. 

How often should the rent be paid for a lease? 

There are no specific legal provisions on the regularity of rent. Parties are free to determine on what periods, and in what amount shall the rent be due, as well as to determine if it is paid in advance or after the expiry of such lease period. 

How can a lessor ensure a successful vehicle lease experience? 

To ensure a successful lease experience, it’s generally advisable to: 

• Comply with Swiss law and regulations on technical control for used vehicles. 
• For a used car indicate its mileage and known defects as well as attach the last technical inspection report. 
• Determine if additional preliminary duties must be done by the lessor (for example: repainting, registration, technical inspection). 
• Draft and sign a detailed lease agreement template using our sample. 
• Keep proper records of all transactions, complaints, and notifications for evidentiary purposes.