When A Lease Ends But The Dispute Begins

A high-value vehicle lease can look straightforward until the leasing company fails. Then the business using the vehicle may find itself caught between an insolvent supplier and the bank that funded the deal. A recent dispute involving a Mercedes-Benz G 63 AMG shows why the fine print matters.

The arrangement was a partial amortisation lease agreement. In simple terms, the monthly payments did not cover the vehicle’s full value. A remaining amount, known as the residual value, was left for the end of the term. The contract also gave the leasing company an Andienungsrecht or ‘option-to-sell’ right. This meant it could require the lessee to buy the vehicle at the agreed residual value plus VAT.