Business models such as car leasing make it possible to drive a new car or a young used car without having to pay the full costs. Especially if you are not interested in committing yourself to a model for a long time and want to avoid the risk of depreciation, leasing a car can be an interesting alternative for you.
How does leasing work in Switzerland?
If you decide to lease a car, a car dealer will provide you with the vehicle for a defined period of time - usually between 3 and 4 years. As with the financing model, you pay a monthly sum to be allowed to drive the car. In simple terms, this is a rental fee. At the end of the contract period, you can decide whether you want to buy the car for the remaining amount. However, this must be agreed in the contract. Otherwise you have to return the leased car.
Especially in the case of company cars, the choice usually falls on leasing due to numerous tax advantages. In Switzerland, leasing is possible not only for cars but also for motorbikes.
How to calculate leasing
The lessee must arrange and pay for all repairs and maintenance, as well as vehicle tax and insurance. When leasing a car, maintenance and inspection services have to be carried out by the contractual partner.
Some contracts offer to take over these payments - but this also increases the monthly leasing rate. Since leased cars are usually (almost) new, the costs for repairs are kept within reasonable limits. How much you have to pay each month depends primarily on the price of the car. Model, engine and equipment drive up the price. The concrete monthly instalments are determined either by kilometre or residual value leasing.
Mileage or residual value leasing: which is better?
The two are the most popular forms of leasing. With residual value leasing, the value of the vehicle when it is returned is determined at the beginning of the contract period. The higher the residual value, the lower the monthly instalments. The value of a car decreases massively, especially in the first few years. If there is a difference at the end of the lease, you as the lessee will have to make additional payments. In the rather rare case that the value of the vehicle is higher than agreed, the dealer does not have to pay you anything. The conditions for follow-up financing or should be negotiated before the end of the contract, because the residual value is not the same as the purchase price when leasing a car.
With kilometre leasing, the lease is calculated according to the kilometres you drive per month. The higher the mileage, the higher the leasing rate. If you are not quite sure how many kilometres you will drive during the leasing period, it makes sense to opt for the higher mileage. Please note: if you terminate the lease in Switzerland before the end of the contract period, for whatever reason, you will incur extra costs. At the end of the contract, you will have to pay extra if you have driven more kilometres than agreed.
Your car on a subscription
Would you like to drive a new car, but the initial costs are too high? In addition to leasing, there is also the car on subscription. Unlike leasing, with a car subscription everything related to the car is already included. This means that the monthly fixed price already includes insurance, taxes, cantonal redemption, service and tyres, and you don't have to worry about any of that. The length of time you can drive your car on a subscription also differs slightly from that of a lease. You can choose between 3, 6, 12 or up to 48 months. After that, you can continue to drive the car or exchange it for another one or return it within 30 days. Convinced? Here you can find all our Carvolution cars.