Private leasing business is on the rise
The private car leasing market is clearly gaining ground in Switzerland, so that Swissquote, as an online bank, has now decided to enter the leasing business. For this purpose, cooperation with Tesla should take place.
Consumer leasing has already increased extremely in 2019, as the Swiss Leasing Association reports, but in the Corona year 2020 demand fell a little. The loan amount that had to be raised on average for leasing vehicles in 2019 was around 34,500 francs, whereby it only concerned new vehicles. Around 30 to 75 percent of the new cars registered in Switzerland are financed by leasing today.
Cash purchase as the best option
It's clear: if you buy a car in cash and don't have to take out a loan, you don't need to worry about interest rates and loan terms. There are no higher fees due to the interest, so the cash purchase is of course the best choice. The advantages of cash purchase, for example, a cheaper vehicle offer, can also be combined with taking out a loan. The loan is taken out at a bank, and the vehicle can be paid for in cash at the dealership.
According to experts, the discount that the cash payer receives is only worthwhile if the vehicle has been owned for at least six years, otherwise the depreciation of a new car will make up for the savings made by paying in cash. From a financial point of view, a vehicle should never be sold after two to three years, as the loss would be too great.
Is subscription a better choice?
If you don't want to buy your own car, you can also subscribe to one. This is made possible by the various subscription providers who maintain fleets of vehicles of different sizes depending on the location. The contracts are usually accompanied by a short notice period, only the costs for fuel or electricity have to be paid. There are no other costs per vehicle, they are all included in the subscription price. Between 300 and 2,000 francs are charged per month, depending on the vehicle and subscription provider.
The subscription is especially useful for those drivers who only want a car for a limited time? the notice periods are usually only one month? or who always want to try out a different vehicle.
At first glance, the average leasing rates of 208 francs may seem cheaper, but with a longer holding period, it is the interest that makes the difference here. In the end, it is actually around 600 francs per month that must be included in the leasing, while it is only around 570 francs per year for subscriptions. However, the comparison cannot simply be applied to the whole of Switzerland, because some fees such as road traffic tax or administrative costs vary depending on the canton.
Conclusion: expensive personal loans and better alternatives
Buying a car with a personal loan turns out to be the most expensive option because the interest rate is usually at least four percent. This only applies to a debtor with a good credit rating. Anyone who has a poorer credit rating and consequently has to accept less favorable credit conditions will be significantly above this interest rate.
In summary, it can be said that the personal loan is the most expensive option and the cash purchase is the cheapest for getting a new car. If you don't want to commit yourself to the vehicle in the long term, you should also consider a subscription. Given that it can be canceled on a monthly basis, this offers the greatest cost savings because all fees that would be incurred for maintaining the vehicle are included in the subscription fee and are therefore calculated at a flat rate.
