6 leasing stereotypes that are wrong

1. You can only lease new cars.

Leasing of used cars is becoming more and more popular. Leasing is possible for new cars, demonstration cars and most used cars. Restrictions are usually tied to the age of the car (maximum 7 years at the end of the lease) and mileage (maximum 200,000 km at the end of the lease).

Leasing a used car offers a lower purchase price and thus leads to a lower leasing rate. The catalog of gowago.ch offers you a wide range of used cars for leasing with attractive monthly rates for a period of 24 to 60 months. By purchasing a used car instead of a new one, you can save between 3,000 and 5,000 CHF depending on the model and mileage.

2. You can't apply for a lease online.

This was the case until a few years ago, but that has now changed. In the meantime, you can look at all the cars on the websites of the leasing providers and also choose right away which one you would like to have.

gowago.ch even goes one step further. Once you've found the perfect car, you configure your package, choosing the terms that fit your needs. 24 to 60 months, a mileage per year that suits you and an upfront payment that fits your budget. You will then be able to proceed with your online application. You will be asked to provide the information and documents necessary to request a leasing. The bank will review your application and after the acceptance you will be able to sign your contract electronically. One the contracts are signed, we will start preparing the delivery of your car.

gowago.ch is the only FINMA approved leasing provider at Migros Bank that can offer a 100% end-to-end leasing application.

3. There are hidden costs with leasing.

You hear it again and again: stories of dubious leasing providers who lure people with enticingly low prices and then confront them with additional costs after the contract is signed. That's why it's important to only get involved with reputable leasing providers. A background check and a close look at the provider's website are a must.

There are a few things that need to be paid for when leasing. These include the optional down payment, the cost of delivery and registration, lease payments depending on the model, term and mileage, car tax, car insurance and inspections and maintenance.

4. Leasing is just like renting.

Leasing has now established itself as a reliable financing instrument and is a good alternative to buying a car. It is a more flexible form of renting. When renting a car, it is not common for the renter to be able to determine the make, features or color of the vehicle - but with leasing, it is. As with renting, you can drive the car without owning it. Moreover, if you intend to buy the car afterwards, you invest in the vehicle at the same time. Already at the beginning of a leasing contract, the term, the leasing rates and the agreed additional services are fixed, so that the lessee can fully plan. With a rental , on the other hand, rent increases are possible and common during the term.

5. Young adult can’t get a leasing

To apply for a lease, you must be at least 18 years old in Switzerland. However, since a lease requires a sufficient credit rating, it is more difficult for some young adults to apply for a lease. One must be able to pay the due monthly installments over the entire leasing period without any problems. Otherwise, you can end up in the debt trap in the worst case scenario. These rules are strict to protect the lessee.

However, young adults who have enough capital and show that they have sufficient income to afford a lease are allowed to apply for one without further ado.

6. I will have heavy fees when I give back the car for the wear and tear

Many people fear that they will have to pay high additional costs for wear and tear on the car at the end of the leasing contract. But the leasing contract specifies exactly what damage and wear and tear you can be asked to pay for at the end of the leasing term and which will be covered by the leasing company.
In general, people who lease a car are expected to treat the car carefully and leave it in its original condition. You do not have to pay for normal wear and tear. However, damage to the car, excessive wear and tear or neglected maintenance must be paid for by the lessee(s).

Also modifications on the car are not desired. However, it is possible to contact the Leasing company in order to obtain permission for any changes to be made on the car. However, it is expected that the car is restored to its original condition before the end of the lease.

gowago.ch works with TCS experts who carefully inspect the leased cars and independently decide how to classify any damage. This means that customers can always rely on a fair assessment.

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