Is it finally the time to purchase your dream car? Or is it that you no longer fit into your sports car with your recent family addition and are looking to get a van? And what would be the most suitable choice for financing your vehicle?
It can be quite a dilemma when You find your new car, but you now need to determine how to best finance the asset. Indeed, for a new car, you thought about leasing. It usually is helpful to compare leasing with an auto loan. Because you may not just be able to deal with better terms and conditions, but you also take ownership of the car and are independent of the car dealer, importer, or manufacturer.
Advantages of an auto loan
Used cars, New cars, collector’s items, or “Jahreswagen” – you decide which kind of vehicle you finance with a car loan. The loan is not dependent on the model or brand you prefer, which suggests that you are independent. You can even go for a mobile home or a motorbike or without restrictions whatsoever.
Once you finance your car with a loan, you will become the owner, and it is yours; this means you decide when to sell it, what insurance you purchase and how much mileage you do a year. There are no commitments as you already have them in a leasing contract; this implies that you enjoy complete flexibility and joy. And if you have to return your convertible with a family van, it’s not an issue either.
The effective interest rate is generally between 3.50% and 9.80% and is conditional on your selected loan term and credit score. For a loan of CHF 10’000.- 12 months, the fees and interest costs vary between CHF 190.60 to CHF 515.34. The totality is, therefore, between CHF 10’190.60 and CHF 10’515.34. Offering a loan is forbidden if it leads to the consumer’s over-indebtedness (Art. 3 UWG).
Ultimately, financing your buy with a personal loan is often feasible at more reasonable terms than your leasing package with its down payment, residual payment, and monthly payments. What appears appealing at first may turn out to be a rather expensive exercise: for example, the necessity for comprehensive insurance or the expenses you get demanded to pay if you desire to repay the leasing earlier. In a nutshell, the appropriate leasing prices can be notably higher than the price tag would suggest; this is where you would like to look closely to save money.
Did you know that you have a tax advantage with an auto loan? Loan interest, be it for your car, apartment or house, is tax-deductible and decreases your taxable income; this is a clear benefit corresponding to leasing payments that are not deductible. And who doesn’t want to save taxes?
People often say that a leasing contract can turn out to be a “ticking time bomb, particularly with a fixed budget.” You will be better off acquiring a personal loan to purchase that used car on any occasion.
Financing your car
Car loan offers in Switzerland are prevalent and are always in demand by the public since individuals would like to finance their next car with an affordable loan. Several companies extend excellent terms and conditions – be it for your electric car, oldtimer, family van, or scooter. You may even have the freedom to determine what you use your loan for and wouldn’t have to answer specifics about the purpose of your loan and how you spend the money. In some cases, it is also up to you to determine the duration of your loan.
Unlike a car loan you would get from a bank, investors who finance your loan request directly and earn loan interest. Some companies only charge a fee and are therefore independent of setting a fair interest rate transparently.
Apply for your loan online, and we will promptly create a tailored loan offer for you. We are also pleased to guide you on consumer loans, debt, and financing. And of course, we wish you comfortable driving with your new car.
Nevertheless, it is always more profitable to be safe rather than be sorry. To avoid any frauds or scams, make sure to do your research thoroughly and accurately. Be sure to go through the terms and conditions applied to the package you wish to purchase to avoid any unnecessary confusion while or after making a firm and final decision.
We highly recommend you compare different car loan offers to enable yourself to make the most suitable decision for your situation and requirements.
We hope to find the best car loan offers in Switzerland easier for you through this article.