Car leasing in Switzerland: requirements
Even if a leasing contract is not equivalent to a credit contract, leasing companies expect a certain security in advance to grant the contract. If you pay close attention to these following points, there will be nothing in the way to your new dream car. In summary, a lease in Switzerland must meet the following requirements, which are explained in the following sections:
- Solvability check. In most cases, lessors require an extract from the debt collection register. This provides information on whether financial liabilities have been paid on time in the past and whether there is no debt collection against the lessee.
- Creditworthiness. The lessor's bank generally requires proof that you are able to pay the instalments over the agreed period.
- Residence in Switzerland. Only Swiss citizens residing in Switzerland or persons holding a B or C residence permit, valid until at least to the end of the lease term can enter into a leasing contract.
The first point concerns the financial side, more precisely the creditworthiness of the lessee. In most cases, lessors require an extract from the debt collection register. This provides information on whether financial liabilities have been paid on time in the past and whether there is no debt collection against the lessee. If your debt collection register excerpt contains entries, now might be a good time to repay the outstanding liabilities. If there are still entries that have already been settled, you may be able to negotiate with the former creditors and have the entries deleted so that this does not stand in the way of your new lease. There are also providers who offer leasing contracts with a negative debt collection register extract. Here, however, you should check very carefully whether it is really a serious provider. As a general rule, the if so-called "inspection fees" are charged in advance just to check your application and regardless of whether a leasing contract is actually granted or not, you should keep your hands off it. In principle, the decision as to whether a leasing contract is granted or not lies with the leasing company and is made on a case-by-case basis. The main factor in the assessment is whether or not your monthly disposable income is sufficient for the instalment after deduction of all liabilities and living expenses.
It is not only a clean debt collection register extract that determines whether you can be granted a leasing contract, but also the amount of your income and other liabilities. Being able to present an unlimited employment contract with a sufficient monthly salary is the best conceivable prerequisite for a positive decision. However, other sources of income such as self-employment can also be considered, whereas the receipt of unemployment benefits is usually not considered sufficient. The decisive factor here is not regularity, but the level of income. In any case, the lessor's bank will check whether you have a sufficient monthly amount available to pay the leasing instalments. It is therefore advisable to calculate in advance how much money you actually have available for a car each month. This will also help you decide which model to buy. When filling in the application form, it is essential that you provide truthful information that will stand up to scrutiny. This means that you normally have to prove to the bank that you have a regular income or that you have sufficient assets to be granted a lease. Family circumstances and any other liabilities are also taken into account.
In order to lease a vehicle in Switzerland, the lessee must also have a permanent residence in Switzerland. However, not only Swiss citizens receive a leasing contract, but also temporary B residence permits or C settlement permits entitle them to conclude a leasing contract, provided that the end date of the residence permit is after the expiry date of the leasing contract. Of course, this only applies if the above financial requirements are met.
There are cases where the monthly income is high enough, but the bank cannot prove this sufficiently. This is the case, for example, with self-employed persons or young entrepreneurs who are not yet in a position to submit the relevant balance sheets. In those cases, a security in the form of a down payment of an appropriate amount or a deposit of 25% of the purchase price, for example, can often be agreed with the lessor in order to get the desired leased vehicle after all.