The Gowago Leasing Dictionary

Welcome to our comprehensive Car Leasing Dictionary, an essential resource designed to educate and enlighten you about the jargon and specialized terms used in the world of car leasing. This dictionary, or glossary, offers clear, concise definitions of key terms and phrases. From understanding different types of leases, like "Full-Service-Leasing" and "Private Leasing," to grasping financial concepts such as "Residual Value" and "Credit Score," this guide is tailored to provide valuable insights. Navigate the complexities of car leasing with confidence, armed with the knowledge you need for a smooth and informed leasing experience.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

0% Leasing

0% leasing refers to a leasing arrangement where the lessee is not charged any interest on the amount financed. In this type of deal, the monthly lease payments are calculated solely based on the depreciation of the vehicle and other fees, without additional interest costs.

Advisor

Every customer at gowago.ch is assigned a dedicated advisor, or consultant, who will take car of all matters surrounding the leasing process.

All-inclusive Leasing

All-inclusive leasing is a variant of private or business leasing. In this model, the monthly payment covers not only the leasing rate but also encompasses all the additional expenses of a car, such as insurance, maintenance, or taxes.

All-in-one

All-in-one is the specific type of all-inclusive leasing gowago.ch offers. There are three packages - Light, Essentials, Premium, which each offer different services in one monthly rate.

Auto-Abo / Car Subscription

Car subscriptions represent a novel financing model where, instead of leasing or purchasing, you essentially rent the vehicle. The duration of a subscription is often shorter than that of a lease.

Baloise

Well-respected Swiss insurance provider and insurance partner of gowago.ch

Best Drive

International car servicing and tyre change company. In Switzerland formerly know as Pneu Egger or Adam Touring. Tyre change and storage partner of gowago.ch

Betreibung / Debt Enforcement

In Switzerland, "Betreibung" is the formal debt enforcement process initiated by creditors against debtors. For car leasing, a clean record from the debt enforcement register is necessary in 99% of the cases, as a history of debt enforcement may indicate financial unreliability and leasing to someone with existing financial struggles is illegal under consumer protection laws.

Betreibungsregister / Debt enforcement register

Register wherein any debt enforcement procedures on a canton or council-basis are documented.

Big Leasing Rate

The big leasing rate encompasses the downpayment together with the first monthly leasing rate. It is the first invoice to be paid.

Business Leasing

Business leasing, alternatively known as company, operational, or corporate leasing, serves as the commercial counterpart to private leasing. Unlike private leasing, this type of leasing agreement is established between a leasing company or bank and a legal entity, such as a business.

Cancellation fee

A cancellation fee in leasing refers to a charge that a lessee must pay if they decide to terminate their lease agreement before the end of the contract term.

Captive / non-captive Leasing Bank

Captive leasing banks are limited to offering leases for specific car brands. Non-captive leasing banks are not tied to any particular brand, allowing them to offer leases for vehicles from a wide range of manufacturers.

Car Pick-up / Collection

When a car pick-up / collection is arranged, it means that the customer will pick up their new car at a specific location, which is a dealership in most cases.

Carte Grise / Fahrzeugausweis

The “carte grise” is your vehicle’s registration document, detailing the vehicle’s and owner’s information.

Contract duration

The contract duration refers to the temporal duration of your leasing contract. Mostly, contracts for leasing last between 24 and 60 months.

Credit Check

The credit check is a financial assessment conducted by the leasing company to evaluate the creditworthiness of a potential lessee. This check reviews the individual's financial stability to determine their ability to meet the lease payments reliably.

Credit score

A credit score is a numerical representation of an individual's creditworthiness, based on an analysis of their credit history.

CRIF

CRIF is a company that assesses, among other things, the creditworthiness of consumers. gowago.ch works together with CRIF in order to conduct their credit check.

Customer Success

The customer success team at gowago.ch takes care of customers after the delivery of the car, including but not limited to arranging service and tyre appointments and after sales.

Delivery

Delivery refers to the delivery of the vehicle to a determined location, often a customer’s home address.

Down Payment

In the context of car leasing, the down payment is a portion of the total purchase price of the car paid by the lessee at the beginning of the leasing contract. A down payment reduces the monthly rate.

Early termination

Early termination of a leasing contract refers to ending the lease agreement before the scheduled conclusion date specified in the contract. The specific terms and costs of early termination are typically outlined in the lease agreement.

EV

EV is the abbreviation for “Electric Vehicle”, a vehicle that runs purely on electric power.

First Payment

The same as “the big rate”, this is the first leasing rate a customer pays and may encompass the down payment.

Fleet Discount

A fleet discount can be applied if the customer works for a company that has an agreement with a specific car manufacturer or dealership, giving the customer a certain percentage benefit on the car’s purchase price.

Fleetleasing

Fleet leasing is a financial arrangement where a company obtains multiple vehicles for business use through a lease, rather than purchasing them outright.

Full-Kasko Insurance / Comprehensive Coverage

Full-Kasko insurance provides extensive coverage for a vehicle, going beyond the basic liability insurance that covers damages to other vehicles and property. Full Kasko insurance typically includes protection against a wide range of damages to the insured vehicle, such as those resulting from accidents, theft, vandalism, natural disasters, and collisions with animals.

Full-Service-Leasing

Full-Service-Leasing is synonymous with all-inclusive leasing, wherein the monthly payment covers not only the leasing rate but also encompasses all the additional expenses of a car, such as insurance, maintenance, or taxes.

GAP Insurance

GAP insurance covers the financial gap if your vehicle is totaled or stolen during the leasing period, ensuring you're not left paying out of pocket. This is an insurance that can be purchased on top of Full-Kasko-Insurance.

Grey import

A grey import refers to a vehicle imported into Switzerland from another country through channels other than the manufacturer's official distribution system. Also called direct or grey import.

Handover

Handover refers to the process where the leased vehicle is officially transferred from the leasing company or dealership to the lessee.

Handover Protocol

The handover protocol is a document filled out upon handover of the car to the lessee. In this document, any pre-existing damages and issues with the car are noted, so as not to be invoiced to the lessee at the end of the contract.

Home delivery

Home delivery refers to the delivery of the car to the lessee’s home address or location of choice.

Hybrid

A hybrid car typically combines an internal combustion engine (petrol or diesel) with an electric motor powered by a battery.

ICE

ICE is the abbreviation for “internal combustion engine” and refers to cars run on either petrol or diesel.

Insurance

With leasing, a full-kasko or comprehensive coverage insurance is required in all cases. When opting for a gowago.ch all-inclusive All-in-one package, the comprehensive coverage by Baloise is already included.

Interest Rate (nominal / effective)

The nominal interest rate in leasing is the basic annual rate charged for financing the lease, not accounting for compounding or additional fees.
The effective interest rate, in contrast to the nominal rate, is a more comprehensive measure that includes the effects of compounding interest and any additional fees.

Intrum

Intrum is a leading credit management company. gowago.ch mainly collaborates with Intrum to facilitate its online signature process.

Lease extension

A lease extension is an agreement to prolong the duration of an existing lease contract beyond its original end date, allowing them to continue using the car without purchasing it.

Leasing

Leasing is a financial arrangement where an individual or business gains the right to use an asset, such as a vehicle or equipment, for a specified period in exchange for regular payments. At the end of the contract period, the leased asset is returned or can be purchased under certain circumstances

Leasing Bank

A leasing bank is a financial institution that offers leases on assets like vehicles and equipment, allowing clients to use these assets for a period in exchange for regular payments, without owning them outright.

Leasing company

A leasing company is a business that provides leasing services. A leasing company may be a leasing bank itself, or alternatively run the main leasing operations for a bank.

Leasing Contract

A leasing contract is a legal agreement between a lessor (leasing company) and a lessee (customer), where the lessee pays to use an asset, like a vehicle or equipment, for a specified period, without owning it.

Leasing parameters

The leasing parameters are specific terms and conditions under which the car can be used. These mainly include the lease duration (typically 24- 60 months), an annual predetermined mileage package (between 10,000km and 30,000km), down payment, and monthly leasing rate.

Leasing Package

A leasing package with gowago.ch includes either only the lease itself (and its specific parametres), or a lease + an All-in-one service package.

Leasing rate / instalment

A leasing rate is the monthly payment made by the lessee to the leasing bank or company. It accounts for the vehicle price, depreciation, and interest.

Leasing Rate Insurance

Leasing rate insurance is a type of financial protection that covers your lease payments under specific circumstances, such as unemployment, disability, or death. If you're unable to make your leasing payments due to these covered events, this insurance can help by paying the lease rates for a certain period or even settling the remaining balance of the lease, depending on the policy terms.

Leasing request / application

A leasing application is a formal request submitted by an individual or business to a leasing company or financial institution to lease a car. This application typically includes personal or business financial information, credit history, and details about the asset to be leased. The leasing company uses this information to assess the applicant's creditworthiness and eligibility for the lease.

Leasingcalculator

A leasing calculator is an online tool or software used to estimate the monthly payments and other financial aspects of a leasing agreement. By inputting variables such as the lease term, vehicle price, down payment, interest rate, and residual value, users can calculate their expected monthly lease payments.

Lease takeover

A lease takeover is a process where a new individual takes over the lease agreement and payments from the original lessee, assuming responsibility for the remaining lease term and conditions.

Lessee

A lessee is the person or entity who leases an asset, such as a vehicle or property, from another party, known as the lessor.

Leitzins (Key Interest Rate)

The key interest rate refers to the interest rate set by a central bank, like the European Central Bank or the Federal Reserve, which influences the cost of borrowing money in the economy. This rate is a crucial tool for central banks to control monetary policy, affecting loan and mortgage rates, and thereby influencing economic activity, inflation, and currency values.

List Price

The list price of a car, often referred to as the Manufacturer's Suggested Retail Price (MSRP), is the price recommended by the car manufacturer for the sale of the vehicle to consumers. This price is set by the manufacturer and typically does not include additional costs such as taxes, dealership fees, registration, and optional features or packages.

Maintenance

Maintenance refers to the regular and routine actions taken to keep the vehicle in optimal operating condition and to prevent future breakdowns and failures.
With every gowago.ch All-in-one package, regular maintenance that does not go beyond normal wear and tear is included in the monthly price.

Migros Bank

A Swiss bank and the financial partner of gowago.ch

Mileage

In the context of leasing, mileage refers to the distance in kilometers that a leased vehicle is allowed to be driven over the term of the leasing contract. Most leasing contracts include a mileage limit between 10,000 and 30,000km annually. The mileage is chosen by the lessee. Excessive mileage may lead to additional payments owed at the end of the contract.

Mileage Extension

Mileage extension in a leasing context refers to an arrangement where the lessee negotiates with the leasing company to increase the mileage limit specified in the original lease agreement.

Mild-Hybrid

A mild-hybrid is a type of hybrid vehicle that enhances fuel efficiency by assisting the conventional engine with an electric motor, but cannot power the vehicle on electricity alone.

off-lease vehicle (Leasingrückläufer)

Off-lease vehicles, or Leasingrückläufer in German, are cars that are returned to a dealership or leasing company at the end of a leasing period. These are often pre-owned vehicles that have been leased by someone else and are now back on the market.

Over-indebtidness

Over-indebtedness refers to a situation where an individual or entity is burdened with more debt than they can manage, often leading to difficulty in meeting financial obligations and potentially resulting in financial distress or insolvency.
In Switzerland, it is prohibited to issue a credit or leasing to an individual or legal entity that is in danger of over-indebtidness.

Ownership

In car leasing, the leasing company retains ownership of the vehicle, while the lessee has the right to use it under the terms of the lease agreement. At the end of the lease, the car may be purchased under certain circumstances and ownership goes to the previous lessee.

Plug-in Hybrid

A plug-in hybrid electric vehicle (PHEV) merges a traditional internal combustion engine with an electric motor and can be externally recharged, allowing for extended electric-only travel. When its battery depletes, the PHEV seamlessly transitions to its petrol engine, offering flexibility for longer journeys without requiring a recharge.

Price

The leasing price, often referred to as the leasing rate or installment, is the regular payment a lessee makes to a leasing company for the use of a vehicle. On gowago.ch, you can instantly access the leasing price for every car, without the need for a quote.

Private Leasing

This involves a leasing agreement between a private individual (lessee) and a leasing company or a bank (lessor).

Quote

A quote in the leasing world is an estimate from the leasing company outlining the lease's financial terms, including monthly payments, lease duration, mileage, and any initial down payment. It may also detail extra costs like maintenance and insurance. On gowago.ch, you receive instant quotes on every car - the price you see is the price you get.

Registration

Vehicle registration is the official process of registering a vehicle with the cantonal authority, which includes issuing a license plate and a registration document. This legal requirement, necessary for operating the vehicle on public roads, involves a proof of insurance, a registration fee, and sometimes a vehicle inspection.

Residual Value

Residual value is the estimated value of a leased car at the end of the leasing contract. It reflects the expected depreciation and is determined in the leasing contract.

Returning the Vehicle

Returning the vehicle means handing back the leased car to the leasing company or dealership at the end of the lease term. This process typically includes an inspection for excess wear and tear, mileage check to ensure adherence to the lease agreement.

Right of tender

The "right of tender" in a leasing context typically refers to the lessee's option under certain circumstances to purchase the leased car at the end of the lease term.

Road Taxes

Swiss road taxes, mandatory for vehicle owners and keepers, vary by canton and are calculated based on factors like weight, engine capacity, and emissions. These taxes, paid annually, fund road infrastructure maintenance and improvements to ensure safe and efficient travel in Switzerland.

Servicing / Service

In the context of vehicles, servicing or service refers to the regular maintenance and check-ups conducted to ensure a car's optimal performance and safety. This typically includes oil changes, brake checks, tire rotations, fluid level adjustments, and inspections of various vehicle components to prevent breakdowns and prolong the vehicle's lifespan.

Stammnummer / Matriculation Number

The matriculation number, Stammnummer in German, is a unique number issued to the car upon first registration in Switzerland. It is used for various administrative purposes and tracks a car’s life cycle in Switzerland. It is NOT the same as the VIN (Vehicle Identification Number), which is issued by the manufacturer when the vehicle is produced.

Self-credit-check

A self-credit-check is a process where an individual accesses and reviews their own credit report to understand their creditworthiness. This check helps in identifying any potential issues or errors in the credit history before applying for loans or credit, such as a car lease. It is possible to do a self-credit-check with CRIF via crif.ch.

Trade-in

A trade-in involves exchanging your current vehicle as partial payment towards the purchase or down payment of a new or used car. This process reduces the overall cost of the new vehicle, making it a convenient option for transitioning from an old car to a newer model.

Trial period

Trial period refers to the probationary period at the beginning of a new employment relationship. It often lasts between 1 to 3 months. In this period, there might uncertainty regarding the long-term stability of the job position. As a result, financial institutions or leasing companies may view individuals in trial periods as higher-risk candidates for leasing agreements and only grant a lease once the probationary period is over and the customer is indefinitely employed in their new position.

Tyre Change

Tyre change refers to the process of replacing the current set of tyres on a vehicle with a new set. This is commonly done for seasonal reasons, such as switching to winter tyres for better traction in snow and ice, or to summer tyres for improved performance in warmer conditions.

Tyre dimension

Tyre dimension refers to the size specifications of a tyre, which are usually printed on its sidewall. These dimensions include the tyre's width, aspect ratio (the height of the tyre's sidewall as a percentage of its width), and diameter of the wheel it fits. For example, a tyre marked as "205/55 R16" indicates a width of 205 millimeters, an aspect ratio of 55%, and a fit for a 16-inch diameter rim.

Tyre Storage

Tyre storage refers to the proper keeping of vehicle tyres when they are not in use, such as seasonal tyres (winter or summer tyres) during off-seasons. This can be done privately at home or via a company. When you choose a tyre package with gowago.ch, your tyres will be stored at a BestDrive location near you.

Used Car Leasing

Used car leasing is a financial arrangement where a pre-owned vehicle is leased to a customer, rather than a brand-new one. This option often provides a more affordable alternative to leasing a new car, as the lower value of a second-hand vehicle leads to lower rates.

Vehicle purchase

After the end of a leasing contract, it might be possible for the customer under certain circumstances to receive and accept an offer to buy the previously leased car and take full ownership of it.

Vignette

In Switzerland, every vehicle using national motorways requires a motorway vignette for 40 francs annually. It is available as either a physical sticker for the windshield or an electronic version linked to the vehicle's number plate through www.e-vignette.ch

VIN

The VIN, or Vehicle Identification Number, is a unique 17-character code assigned to each motor vehicle, used for tracking recalls, registrations, and insurance matters. It can typically be found on the driver's side dashboard, footwell, door, or on the vehicle's registration document.

Wallbox

A wallbox is a charging station for electric vehicles designed for home or business use. t's a compact, wall-mounted unit that provides a faster and more efficient charging solution for EVs compared to standard electrical outlets.

Warranty

A car warranty is a manufacturer's or dealer's promise to repair or replace certain parts of a vehicle if necessary within a specified period or mileage limit. This warranty covers defects or issues that arise from the manufacturing process, ensuring the vehicle operates as intended without additional cost to the owner for covered repairs. The length of the warranty varies depending on the manufacturer.

With Downpayment

Leasing with a down payment refers to a leasing arrangement where the lessee makes an initial lump sum payment at the start of the lease. This down payment reduces the monthly lease payments for the remainder of the lease term, as it covers a portion of the vehicle's value upfront. Some leasing companies may require a down payment for higher valued cars.

Without Downpayment

Leasing without a down payment is a type of leasing arrangement where the lessee does not make an initial lump sum payment at the start of the lease.

ZEK

ZEK, short for "Zentralstelle für Kreditinformation" (Central Office for Credit Information), is an organization in Switzerland that maintains a database of credit-related information about individuals. ZEK is consulted to confirm an individuals credit-worthiness.

Leasing is a complicated matter and a serious financial commitment. Hence, it is important that you, as a customer, understand the intricate details of this financing type and can make an informed decision on your future private mobility. With the above definitions, you should now be able to navigate the leasing landscape with more confidence and knowledge, ensuring you take the right steps.