Why did leasing become popular?

Increasingly more people are interested in leasing in Switzerland. About half of the new cars in Switzerland are leased and this number is growing. So why is this number growing and why do people lease? Lets have a closer look!

• New car, all the time
  First of all, leasing a car means you always get to drive around in a sweet new ride. For many people, especially in Switzerland, this is an emotional boost that can’t be ignored. If you love cars and driving, this is a big perk.
• Less maintenance issues
  As the car is brand new, you don’t spend often time at the garage. You return your car before these kind of problems start showing up. If you lead a very busy life, or you’re on the road a lot, this is one less stress you have to deal with.
• "Afford” a nicer car
  If you’ve ever wondered how it is that so many people can afford to drive BMWs and Range Rovers, then wonder no more. According to dealerships, around 75% of all luxury cars are leased. Leasing allows you to “afford” a nicer car than you’d get if you had to buy it.
• Few upfront costs
  Speaking of costs, leasing allows you to get into a car with very few “upfront” costs. You often don’t need a down payment (or if you do, it’s fairly low)
• Driving of the future
  The last reason is that, in general, people don’t want to invest a large amount on their car anymore, especially young people. And why should you? When you drive the car out of the dealership, you loose 20% of your investment. This is one of the major factors why people are more interested in paying a monthly fee.

If you are hesitating between financing leasing or buying, please check our article on owning a car and see the pros and cons of each option.

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