In leasing agreements, leasing companies act as lessors. Here, most leasing companies are subsidiaries of banks or automobile manufacturers.

Leasing company

Broadly speaking, a distinction is made between vendor-dependent and vendor-independent leasing companies. Leasing term (duration) In vehicle leasing, the leasing term represents the defined period in which the vehicle will be made available for personal use.


Lessees can be individuals, but also legal persons. Lessees pay to the lessor a certain consideration in return for the right to use a leased asset over a defined period.

Leased asset

An asset provided for use by the lessee is commonly described as a leased asset.

Leasing returns

'Leasing returns' is the term used for vehicles that the lessee does not wish to keep at the end of the leasing period and are instead handed back to the leasing company once the agreement comes to an end. In general, leasing returns are considered to be attractively priced, as leasing companies are interested in rapid remarketing of the vehicles. Leasing returns may come from individual leasing agreements that have run their course; but they may also originate from fleet leasing agreements in which a large number of – quite commonly – identical vehicles are returned at the same time. Potential buyers may discover particularly attractive bargains in this surplus of vehicles. Sixt Leasing remarkets some of its leasing returns via Sixt Autoland in Garching near Munich.

Leasing agreement

The leasing agreement is based on the terms and conditions of the leasing company, i.e. framework agreements with the customer, and hence defines all rights and obligations of the contractual partners.

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