Car leasing or personal loan: in Switzerland, which financing for your car?
Leasing or personal loan: discover which type of financing is most advantageous for your next car in Switzerland. Car insurance.Ch examines the various advantages and disadvantages to help you make the right decision and save money
10.03.2020 06:52
Advantages and weaknesses of leasing
Leasing, a very popular type of financing in Switzerland, allows to obtain a new car against the payment of monthly installments, which is set on the basis of the price of the vehicle, the duration of the contract or even the number of kilometers. The possibility of partial payment is an important advantage, but you should still consider some aspects of leasing before making a deal. Normally the conclusion of a comprehensive insurance is obligatory with a leasing, which influences the height of the premiums for the car insurance. In some cases, especially with low rates, a down payment may be required. But this amount is in turn deducted from the amount to be financed, so the leasing costs will be lower. Remember that you can take advantage of a 7-day withdrawal period from the conclusion of the lease.
An online simulation of your leasing budget will help you calculate your repayment capacity in relation to your income and obligations.
The personal loan
The personal loan is a consumer loan granted by a bank to a private person, which must be repaid in the form of monthly installments. If you decide to take out a personal loan for a certain amount, you will benefit from several advantages. For example, if you finance your car purchase with a personal loan, you are the owner of your vehicle. This will allow you to take out the insurance of your choice (comprehensive, partial or third party), you have no mileage limit and you can sell your car at any time.
Personal loan or car leasing? Compare now!
Leasing or personal loan?
The purchase of a new car is a big financial burden and although the payment with existing financial means is the most economical solution, it is sometimes unavoidable to ensure the financing with a lease or personal loan. But which financing method should you prefer to save money? Every situation is different, you have to make comparisons! In this case we advise you to consider various criteria and not only the interest rate. When you take out a personal loan, you become the owner of the vehicle and can benefit from some freedoms, for example, the choice of insurance and garage. In addition, the personal loan allows tax deductions and you can sell your vehicle as soon as your financial situation changes. So you have to compare the different options in relation to your budget.
Take advantage of our comparisons and discover right now whether a personal loan or a lease is the better solution!