What Are the Types of Leasing a Car in Switzerland?
With all the different ways to get a car in Switzerland, it can be quite difficult to keep track of everything. gowago.ch helps you to get a better understanding of the market.
Sometimes you cannot see the woods for the trees. If you want to acquire a car in Switzerland, you first have to make a decision about the types of financing. There are multiple different alternatives if you do not want to buy your next new or used car. In this article, we will help you gain a better grasp of these options in the leasing market.
- What is Private Leasing?
- What is Business Leasing?
- What does All-Inclusive Leasing mean?
- What are Car Subscriptions?
- What can I find on Online Marketplaces?
What is Private Leasing?
Most you need to know about private leasing is already in its name: It is a leasing contract between a leasing company or bank and a private individual.
As is common for leasing, customers receive the usage rights but not the ownership of the vehicle, and agree to make monthly payments over a contractually determined time period (of at least 2 years). The monthly leasing rate is influenced by the contract duration, annual mileage as well as initial down payment, and includes the nominal interest rate, vehicle depreciation, and vehicle price.
At the end of the leasing contract, the customer can extend an offer to the leasing company to buy the car at the contractually agreed residual value - this offer is usually accepted.
Who is Private Leasing for?
Private leasing is worth it if you want to finance your car on a monthly basis without major upfront costs. It is also of advantage that you are not bound to a car long-term, and thus retain the flexibility to repeatedly change to a newer model.
Which Swiss Private Leasing Providers are there?
Leasing Banks (non-captive)
- Bank now
- gowago.ch leasing by Migros Bank
Leasing Banks (captive)
- AMAG Leasing
- Multilease (Emil Frey)
- BMW financial services
- FCA capital
- RCI financial services
- Mercedes Benz financial services
- Ford credit
- Opel finance
- Santander Consumer Finance Schweiz
What is Business Leasing?
Business leasing, also called company, operational, or corporate leasing, is the commercial equivalent of private leasing. In contrast to private leasing, this type leasing contract is signed between a leasing company or bank and a legal entity, i.e. a company. These are often SMEs (small and medium-sized enterprises) that rely on a vehicle to carry out their business.
Through business leasing, valuable capital does not become tied up in a car and can be invested elsewhere by the SME. The leasing rates can be deducted from the company's taxes.
A further convenient feature is that a commercially leased vehicle can also be used for private mobility. However, private use must be reflected in the tax statement.
Who is Business Leasing for?
Business leasing is a useful for SMEs and self-employed professionals who are dependent on mobility to carry out their business and value the same flexibility for their company found in private leasing.
Which Specialised Business Leasing Providers are there in Switzerland?
- ALD Automotive
- MF Fleetmanagement
(Most of the captive providers also offer business lease.)
What does All-Inclusive Leasing mean?
This type of leasing is an extension of private leasing or business leasing. With all-inclusive leasing, the monthly invoice includes the leasing rate as well as all the additional costs that arise when running a car (such as insurance, maintenance and taxes), also called TCO (total cost of ownership).
Depending on the coverage, as a vehicle user, you only have to pay for the fuel in the case of combustion vehicles or the electricity in the case of electric vehicles. In addition, you do not have to organise insurance, tyre changes, etc. yourself.
Who is All-Inclusive Leasing for?
All-inclusive or full service leasing is particularly useful for people who want to save time and money, and use their leased car without becoming engulfed in paperwork.
Which All-inclusive Leasing Providers exist in Switzerland?
Private Leasing All-Inclusive:
Business Leasing All-Inclusive:
- ALD Automotive
- MF Fleetmanagement
What are Car Subscriptions?
Car subscriptions are a relatively new type of financing where you rent the car instead of leasing or buying it - similar to renting a car on holiday. In contrast to leasing, the legal framework and consumer protection involved in car subscriptions are less developed than that of leasing because the system is still in its infancy.
The duration of a subscription is often shorter than that of a leasing contract and can range from one month to several years. The kilometres that may be driven are fixed on a monthly rather than annual basis. Similar to all-inclusive leasing, vehicle use, insurance, maintenance and all other costs are combined into one monthly price.
However, no down payments that reduce the monthly instalments are possible, and there is no option to buy the car at the end of the rental contract. Car subscriptions are also more restrictive in terms of vehicle choice: subscriptions can only be signed for certain cars selected by the provider.
Who are Car Subscriptions for?
A car subscription is worth it for those who want total flexibility or need a car for less than two years.
Which Car Subscription Providers are there in Switzerland?
- Sixt Auto Abo
- Hertz Minilease
What can I find on Online Marketplaces?
This option only partially overlaps with leasing a car, as marketplaces also offer cars that are no longer leasable due to their age or mileage. However, if you find a car on a marketplace that suits your needs and meets the requirements for leasing, you can request an offer from certain leasing agencies or banks.
Who are Marketplaces for?
Visiting a marketplace is useful for those who are not only thinking about leasing, but are also considering acquiring their next car by paying cash or taking up a personal loan. A marketplace is also ideal for finding older, cheaper but therefore less reliable second-hand cars.
Which Marketplaces for Cars exist in Switzerland:
- Auto Scout 24
- Car For You
As you can see, there is an option for everyone. These are also the options your car dealership would likely recommend.
If you are an individual who wants to use a car by making monthly payments and potentially avoid a long-term commitment, private leasing is the best option.
For SMEs or the self-employed who depend on mobility, business leasing is an attractive solution.
If you don't want to worry about anything other than driving, with a fixed monthly payment that includes all you need, then all-inclusive leasing is the right alternative for you.
Finally, if you want maximum flexibility, you can opt for a subscription.
Apart from monthly financing options for your car, there is of course the traditional cash purchase or personal loan. These financing options are particularly suitable for people who drive more than 30,000 kilometres a year, want to own their car from the get-go or wish to buy an older second-hand vehicle.