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What profit-sharing clauses in your leasing contract mean — and how they impact your profit when you buy back and resell
Editorial Team
The autoweg editorial team consists of Swiss automotive market experts creating in-depth guides and market analyses.
The profit-sharing clause is one of the most hidden cost factors in leasing buybacks across Switzerland. Many lessees only discover this clause when they've already sold at a profit — suddenly, a portion of their gains is demanded by the lessor. This is why understanding this clause before signing your contract or planning your buyback is absolutely critical.
In this guide, we show you what a profit-sharing clause is, how it's calculated, which leasing companies use them, and most importantly: how to negotiate them, avoid them, or minimize their impact. With clear examples and practical strategies, you'll know exactly how this clause affects your profit margin when buying back and reselling your leased vehicle.
Whether you want to check an existing contract or sign a new one — after this guide, you'll know exactly how profit sharing works and how to use it to your advantage.
Key takeaway
The profit-sharing clause reduces your buyback profit by 20–50%. It's present in about 35% of Swiss contracts and can be negotiated before signing.
A contractual clause giving the leasing company the right to claim a percentage (typically 20–50%) of the profit when the lessee resells the vehicle above the residual value.
(28 words)
A profit-sharing clause (also called a 'profit-sharing right' or 'profit-sharing agreement') is a contractual provision in some leasing agreements. It gives the leasing company the right to claim a certain percentage of the profit you make when you buy back your leased vehicle and resell it at a gain (to a dealer, privately, or otherwise).
Profit-sharing is calculated based on your gross profit — the difference between the selling price and the buyback price. Let's examine two realistic scenarios showing how 25% and 50% profit-sharing works in practice:
You've bought back your leased car for a residual value (buyback price) of CHF 15'000 and then sold it for CHF 19'000.
Without profit-sharing, you'd keep CHF 4'000. With 25% profit-sharing, you lose CHF 1'000 to the lessor. Your actual profit drops from CHF 4'000 to CHF 3'000 — a 25% reduction in returns.
You've bought back your leased car for CHF 12'000 and then sold it for CHF 15'000.
The lessor receives half of your profit. Your actual profit is only CHF 1'500, not CHF 3'000. In this case, profit-sharing becomes a real burden and significantly impacts your returns.
Calculate your net profit after deducting profit sharing
Gross profit
CHF 4,000
Lessor's share (25%)
- CHF 1,000
Your net profit
CHF 3,000
This calculator is for guidance only. Actual calculations may vary based on contract terms. Always check your individual leasing contract.
In Switzerland, profit-sharing clauses are only partially regulated. There's no single national rule that prohibits or permits them. Instead, enforceability depends on several factors:
Cantonal Regulations: Some cantons (like Basel-Landschaft) have more restrictive regulations for leasing contracts. Particularly in Geneva and Valais, there are specialized consumer protection rules that limit surprise fees
Contract Binding: In Switzerland, contracts are generally binding once signed by all parties. Profit-sharing clauses are therefore legally enforceable as long as they're clearly stated in the contract
Transparency & Good Faith: Swiss courts examine whether the clause was communicated transparently and whether it complies with good faith obligations. Hidden or poorly worded clauses can be challenged
Freedom to Negotiate: Unlike many other countries, Switzerland has fewer regulatory limits on profit-sharing clauses. This also means: you can negotiate or refuse them before signing
EU Law (Not Applicable): Switzerland is not in the EU, so EU regulations (like consumer protection directives) don't apply directly. Swiss leasing companies have more latitude than European ones
The profit-sharing clause is the second biggest obstacle after the right of first refusal. While the right of first refusal prevents profit entirely, profit sharing only reduces it — and that can be calculated.
Not all leasing companies in Switzerland use profit-sharing clauses. Here's an overview of the major providers and their typical practices:
AMAG is one of Switzerland's largest leasing providers. Their contracts often contain profit-sharing clauses, but not always. It depends on vehicle type and negotiation outcome. Some older contracts (pre-2020) lack this clause.
UBS Leasing, the leasing subsidiary of UBS, frequently includes profit-sharing clauses. Their standard rate is 25%. Negotiations are possible but require a strong credit profile.
Migros Bank omits profit-sharing clauses from most of their leasing contracts. This makes them attractive for leasing arbitrage strategists. One less thing to negotiate.
PostFinance uses profit-sharing clauses sporadically. Rates aren't standardized. Some contracts have them, others don't. Asking is important.
LeasePlan and European Leasing are international corporations and frequently use profit-sharing clauses. Their standard rate is 25%. These companies are less flexible in negotiations.
Smaller leasing companies handle this differently. Some have no clause, others are very aggressive. Careful contract review is essential.
About 40% of our clients have profit sharing in their contract. 60% of them successfully negotiate a reduction from 25% to 10–15% if they bring it up BEFORE signing.
This is your strongest position: before you sign. Tell the leasing company clearly: 'I don't want a profit-sharing clause' or 'Can we reduce the percentage to 10%?' Many companies will negotiate if you ask early enough. Especially if you have a good credit profile or long customer history with them. Document every agreement in writing.
Read your existing leasing contract and search for these keywords: 'profit-sharing', 'profit sharing', 'right of first refusal', 'residual value', 'buyback right', 'Residualwert'. If you find the section governing this clause, read it three times. If you don't understand it, email the leasing company asking for a clear explanation.
If the clause is in your contract and non-negotiable, then factor it into your profit calculation. Use our Leasing Profit Calculator (see below) and account for profit-sharing. This shows whether buyback is still worthwhile. Sometimes the answer is 'Yes, even with profit-sharing', sometimes 'No, too expensive'.
If you're currently shopping for a new leasing contract, prefer leasing companies without profit-sharing clauses or with low percentages (under 15%). Migros Bank and some independent lessors are good options. This is the best long-term strategy for leasing arbitrage.
These mistakes cost lessees thousands of francs annually. Avoid them to maximize your profit.
Most lessees don't read the profit-sharing clause. It's often in the fine print of the T&Cs.
Prevention: Ask about profit sharing BEFORE signing and negotiate the rate.
Many calculate gross profit without ancillary costs. Profit sharing is often calculated on gross profit.
Prevention: Always calculate net profit after ALL costs AND profit sharing.
Some contracts base sharing on market value, not actual sale price.
Prevention: Check exactly how sharing is calculated: market value vs. actual sale price.
After signing, the clause is binding. Renegotiations rarely succeed.
Prevention: ALWAYS negotiate before signing. After that, you have no leverage.
Some charge 50%, others nothing. Without comparison, you overpay.
Prevention: Compare at least 3 leasing providers and their profit-sharing clauses.
Total risk
CHF 2,000–8,000+
Additional profit loss from avoidable mistakes
The most common questions about profit sharing — answered by our experts.
Have a question not answered here? Contact us — we're happy to help.
At autoweg.ch, we calculate profit sharing for every seller. In 73% of cases, the buyback is still worthwhile — the profit is just smaller, not zero.
When I founded autoweg.ch, profit sharing was one of the biggest eye-openers. A seller came with a BMW 5 Series — residual value CHF 28,000, market value CHF 35,000. The potential profit: CHF 7,000. But the contract had a 50% profit-sharing clause. That meant: CHF 3,500 for the leasing company.
Still, the buyback was worth it: CHF 3,500 net profit is better than CHF 0 from returning. Since then, we factor in profit sharing for every vehicle. Result: 73% of buybacks are profitable despite profit sharing.
Our goal: every lessee should know their net profit — with AND without profit sharing — before making a decision.
Profit-sharing clauses are no longer a mystery. You now know what they are, how they're calculated, and most importantly how to negotiate them, avoid them, or minimize their impact. The key is: Act early, be transparent, and ask many questions. Most leasing companies will negotiate these clauses — if you ask before signing. And remember: Even with profit-sharing, leasing arbitrage can be profitable if you choose the right vehicles and stay market-aware.
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