Is it worth applying for a personal loan to buy the new car? If you want a new car, you are at best in possession of enough liquidity, i.e. cash. When the new car is paid in cash , you save the most money. In most cases, however, you do not have enough cash and therefore use a pool that is conveniently repaid in monthly installments. The associated costs can vary greatly depending on the pool rate. In any case, it is worth making a comparison to find the best solution for your own needs.
The personal loan can be a good solution to split the costs into different monthly installments. The biggest advantage of buying a car in Switzerland through a personal loan is that you own the vehicle from the start. In other words, you get the cash from a financial institution as the total amount that you transfer to the car dealer to buy the vehicle. According to the swimming pool contract, the debt is then reimbursed to the financial institution in the contractually agreed monthly installments. This is not the case with leasing.
Car loan or leasing? What is cheaper in Switzerland?
As mentioned above, the car is yours when you buy it through a car loan. Not with leasing . And although leasing may seem cheaper at first, there are many factors to consider.
With car leasing, there are various essential additional costs, such as insurance costs. As a lessee, you are obliged to take out comprehensive insurance . There is no option for partial comprehensive insurance on leasing. In addition, fully comprehensive insurance for leased cars is more expensive than for purchased vehicles. Taxes are another cost item because leasing interest cannot be deducted from taxes. The leasing contract also specifies a maximum number of kilometers per year to which you are bound. Every additional kilometer driven can be expensive. If living conditions change and the leasing cannot be completed as in the contract, a large sum is usually charged for early termination.
Car loan , on the other hand, is a classic car loan: the car is yours immediately. This means that you can do with it what you want. If you suddenly find yourself in a financial bottleneck, you can sell the car at any time and pay back the pool early. The athlete decides on the insurance independently and can also change it in accordance with the insurance contract. It is also important to know that car loan interest is tax-deductible.
So in order to save money in the long term, various aspects must be considered between car loan and leasing. It is important to first assess your own financial situation well in order to find a cheap solution for car financing.