Car loan Switzerland compared to leasing
In some life situations, the purchase of a new car may be required. Be it because the family is getting offspring or you need a larger vehicle for work.
The cheapest option is of course the car to pay cash. But you usually do not have the necessary liquidity for it. In this case, a car loan or lease can be considered as additional financing.
The opinion seems common that a lease is cheaper than a car loan. But this is not the case. But the biggest advantage is: When buying a car through a personal loan, the car belongs to you right from the start.
What is a lease?
Leasing is a form of financing a consumer good, with the focus on use rather than ownership. The leasing company (bank or financial institution) buys the leased object and leaves it to you upon payment of the leasing installment. The property remains with the leasing company. After expiry of the lease period, you can buy or return the object after consultation.
Simply put, if you decide to lease a car, then the vehicle will not be yours even after the installments have been paid. However, you can use the car as a lessee during the lease term. At the end of the contract period, you can return the car or buy from the financial institution after consultation. Of course, as a lessee, you are liable for the car throughout the duration of the contract and are obliged to maintain the vehicle.
Benefits of auto financing through a personal loan
- You are the owner of the vehicle from the beginning. Say they make what they want by car.
- The comprehensive insurance is voluntary.
- The car can be resold as needed at any time.
- The personal loan is also early repayable.
- You decide when and how the car will be repaired, not the leasing company.
- The interest on the loan is deductible from the tax return.
Apply for credit online
You can conveniently apply for your auto financing loan online. Simply enter desired amount and number of installments into the loan calculator and then complete the application form completely.
Our experts usually process your request within 24 working hours and contact you.