Do you need a new vehicle? In Switzerland, credit and leasing are the two main financing methods for the purchase of a car (only 25% of the population pays cash). However, it is not always clear which alternative is the most advantageous. Here we offer a detailed overview of leasing and car credit!
Auto credit, or small credit, is a very common option when you want to buy a new or used vehicle. This solution allows you to benefit from a great freedom since you will be able on the one hand, to choose the amount, the brand and the dealer of your car and you will, on the other hand, be the owner of the vehicle as soon as you use it. Here are the elements taken into account in calculating the credit:
- The price of the car (amount credited): from 3,000 USD in general.
- The duration of the credit : from 1 to 6 years.
- The interest rate : often between 7 and 14% in Switzerland.
Many Swiss people are tempted by this alternative, which ultimately looks like a financed “car loan” . It is therefore a simple and effective solution, although you do not own the vehicle, either at the start or even at the end of the contract. Leasing takes into account many elements that influence the calculation of monthly payments.
- The purchase price of the vehicle.
- The duration of the contract.
- The interest rate: generally between 2 and 5%.
- The residual value of the car : it depends, among other things, on the make and model, the age of the vehicle, the mileage.
Credit or leasing
If the credit seems less advantageous at first, it is because it allows you to fully reimburse your car! The monthly payments for a lease are certainly lower, but at the end of the contract, the vehicle does not belong to you. In addition, leasing is more uncertain since the interest rate and the residual value are fixed by the mechanic (the offers therefore appear very competitive)!
If you are unsure, the best thing to do is always compare the offers before making a financial commitment! visit site that offer comparators of leasing and credit offers! All you need is a few clicks to make your choice!