Car leasing, the most important facts in brief

How does leasing work? What are the advantages and disadvantages? Are there any risks with car leasing? What alternatives are there? Find the questions and answers here.

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Questions and answers

The most important questions and answers about leasing.

Leasing: How does it work?

With a car lease, you rent a car from a car dealer or leasing company for a certain period of time, usually three to four years. During the leasing period, you pay a monthly leasing rate that covers the costs for the car as well as the costs for financing, i.e. the interest. The costs for the obligatory comprehensive insurance, the taxes, the licence plates and the right tyres are not included in the monthly leasing rate and have to be covered by you additionally.

At the end of the leasing contract, usually three years or longer, the car is returned to the car dealer or leasing company. In some cases it is also possible to buy the car.

A big advantage of leasing is that it can be cheaper than buying a car, especially if the same car is only used for a relatively short time or only a few years. In contrast to buying, the initial costs are also relatively low and the lessee bears no residual value or resale risk, as the car is returned to the car dealer or leasing bank at the end of the leasing period.

The prerequisite for leasing in Switzerland is a valid driving licence and a good credit rating. Proof of residence and income is required for a leasing application to be considered.

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Questions and answers about leasing

General information

How is the monthly leasing instalment made up?

In addition to the monthly lease instalment, which depends on the vehicle price, residual value, term, kilometre package, deposit and interest rate, there are other costs incurred during the lease period. These include insurance, taxes, cantonal redemption, service, repairs and maintenance. Depending on the lease agreement, these factors may be included in the lease. However, this will increase the monthly lease instalment and is then referred to as full-service leasing.

What is included in a lease?

First and foremost, only the costs of using the car for a certain period of time are covered. Fully comprehensive insurance, taxes, service & maintenance and tyres are additional costs that are not included in the monthly rate. Depending on the leasing provider, these can be booked for an additional charge, i.e. an increase in the leasing rate. This is known as full-service leasing. With a car subscription, you benefit from an All-in-One bundle in which these costs are already included.

Can I customise my leasing contract?

With leasing, you determine the conditions at the beginning. You choose your car, the duration and the kilometre package. These are then fixed and generally cannot be adjusted for the duration of the lease. If you want to adjust your leasing contract, it is best to contact your leasing provider. With a car subscription, you are more flexible in terms of duration, kilometres and vehicle changes.

Can a lease be terminated before the end of the term?

No, a lease can only be cancelled or terminated early in exceptional circumstances. It is therefore advisable to agree terms that are certain to be met. If you wish to terminate a lease prematurely, it is advisable to find someone to take over your lease. In this way you can avoid the high exit costs.

Is leasing also available without a down payment?

Yes, leasing is usually also available without a down payment. In this case, the total cost is spread over the term of the lease, so the monthly instalment is significantly higher than with a down payment. However, the total costs remain the same with or without a down payment, only the time of payment changes.

Can I also use the car subscription for an SME?

Yes, Carvolution offers subscriptions for private individuals and companies. You can purchase your company car or even an entire fleet from Carvolution. We will be happy to advise you if you have any questions.

What is the difference between leasing and subscription?

The car subscription is the simple and affordable alternative to leasing. The durations are more flexible, as the subscription is available for between 3 and 48 months, while leasing usually offers long-term durations of 36 to 60 months. In addition, the low, fixed monthly price of a car subscription includes all costs for using the car (fully comprehensive insurance, taxes, tyres, registration, service & maintenance and other extras), while the monthly leasing rate only includes residual value, interest and leasing costs. With leasing, however, there is usually also the option of buying the car after the leasing period. This is not always possible for all cars with a subscription.

Do I own the car after the leasing term ends?

No. When leasing, you pay for the use of the car, but must return it at the end of the term. However, depending on the vehicle and leasing contract, it may be possible to buy the car after leasing.

Details about the leasing

Can I get a leasing down payment back?

The purpose of a down payment is usually to reduce the total cost of the lease so that the monthly instalment is lower. The down payment is therefore not a deposit that is returned at the end of the lease if the vehicle is in good condition.

What happens if I have an accident with a leased vehicle?

In principle, the procedure is similar to any other accident. In addition, the owner of the vehicle, i.e. the lessor, must be informed. The exact costs you are liable for will depend on your leasing contract and insurance terms. There may be additional charges for repairs, towing or administrative costs, among other things.

Who is the owner of the car and who owns the car when it is financed?

With leasing, you are the holder of the car for the entire duration of the contract and service. However, the leasing company remains the legal owner of the car, which means that the car legally belongs to the leasing company.

Who pays for the service, maintenance and repairs when leasing?

The costs for servicing, maintenance and repairs are borne by the leasing customer. Depending on the leasing provider, this can be booked for an additional charge, i.e. an increase in the leasing rate. This is known as full-service leasing. With a car subscription, you benefit from an All-in-One bundle in which these costs are already included.

Can you return a leased car early?

Leasing contracts are a long-term commitment of usually 36 to 60 months. The selected duration is fixed and the contract cannot be cancelled or can only be cancelled in return for financial compensation. Alternatively, a leasing transfer can also take place. In this case, a current leasing contract is transferred to another person. This person takes over the car and the contract and becomes the new contractual partner of the leasing company. However, this is not always possible.

How many kilometres can you drive when leasing?

At the start of the contract, you can specify the kilometres in your leasing contract. However, these cannot be adjusted during the duration of the contract and extra kilometres can quickly become expensive. So think carefully about how many kilometres you need.

Is it possible to extend a lease by one year?

A lease can often be extended. However, this depends on the leasing company and the terms of your contract. If there is an option to extend the lease, the monthly leasing instalment is usually lower than for a new lease, as the depreciation of the car is highest in the first leasing period.

Are there any age restrictions on leasing?

Yes, but these vary between leasing providers. The minimum age is usually 18, but there may be variations or additional costs for young drivers. There may also be an upper age limit if risk factors associated with a higher age need to be taken into account.

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