4 ways car leasing ads can fool you
Have you ever been driving around and see this beautiful, huge billboards showing a new premium caradvertising with a leasing price at the price of an internet abo? You’re not alone. Hundreds of thousands of people did as well. However, have you ever questioned the nature of that price? gowago.ch helps you take a closer look at these ads and expose what you need to carefully look at not to be mislead.
1. The 0% leasing trick
One of the biggest tricks in the industry is the 0% leasing. People are very interested in 0% interest rates because on the paper it sounds great. Like free money lended. However when you understand how leasing a new car work, you will see that one of the biggest factor for your wallet is not the interest rate itself, but the residual value of the car. Therefore, manufacturers can manipulate the residual values of cars to higher the mensuality whilst lowering the interest rate. As a result, you have a big 0% leasing you can advertise, but not a positive impact on your wallet.
2. Show one car, price another
A classic game that car ads like to play is showing the most checked out, fully loaded, top trim level of a model but advertising it for the price of the base model. In reality, the prices can differ by thousands of franks. When shopping, you should review the engine and equipment included within each new car deal and buy only features you know you need. Automakers usually equip one version of a car model at a strategic price so they can present an affordable-sounding figure. However some dealers may order relatively few of these cars because in the end, buyers actually want to buy more fully featured cars. So lots of times, even if you wanted to buy the car that you saw on the advertising, those cars might be limited in stock.
3. Big up-front leasing payments
Do you know that theoretically speaking you could get a Rolls-Royce for CHF199 per month if you paid a high enough down-payment? Downpayment is a leasing term for the amount of money you pay up front to cruise off the lot, the first monthly payment. High down payments make sense when you’ll eventually own the car, but when leasing a car, it’s the opposite. GOWAGO recommends a downpayment that doesn’t exceed 20% of the value of the car. Your monthly lease payment will be higher, but you’ll preserve your savings. From what we hear from our recommended dealers, more and more people are going for a CHF 0 down payment.
4. Beware of the mileage
A low payment doesn't necessarily mean you're getting more. You need to understand the value of mileage packages before you race down to the dealership. The difference between a lease calculated at 10,000 km per year and 15,000 km per year can be up to CHF50 a month. Most of advertising will showcase a price using the lowest mileage because obviously it’s the way to go for best leasing price.
One of the most important value for gowago.ch is the transparency. Use gowago to get a right estimation of your monthly payment
- We takes for estimations an average leasing rate of 4.7%
- We recommend a default downpayment of 15% and don’t allow more than 50% downpayment in our leasing calculator tool
- Each vehicle deals will show the right equipment attached to the listing item, so you can review the car features that is priced correctly.
- We allow you to select the right mileage that fits your needs to the price reflects already the impact of your true usage.
As gowago.ch's values are transparency and simplicity, we fight all the leasing ad tricks to provide you the safest car buying experience. So don’t hesitate one second, browse the best new car leasing deals in Switzerland and find the right car, at the right price at the right dealership on gowago.ch!