Anyone who wants to buy a high-priced car can now easily fulfil this wish with a car loan. Even if the necessary financial means are not available, the car can be paid for with a cash loan and financed with convenient monthly instalments to the bank.
Car loans are in many ways comparable with a car leasing, but there are advantages and disadvantages which must be considered individually. Buying a car is very easy today, as banks often offer favourable conditions. The car loan usually have quite long terms and high loan amounts. You can find an overview of the credit providers in our credit comparison, the monthly credit instalments can be calculated with our credit calculator.
Advantage of cash payment
No matter whether a new or used car, attractive offers from car dealers usually require fast and flexible reaction. If buyers pay cash, most dealers will offer discounts or at least be more open for negotiation. In addition, the deal can be closed immediately.
Advantages of car loans
When buying a vehicle on credit, the vehicle belongs to the buyer. The vehicle can be lent or re-sold again at any time. In addition, there is no need to take out expensive fully comprehensive insurance, as is the case with leasing contracts. The sales contract is more flexible and gives the buyer more leeway. In addition, the car can be taken to the garage of your choice for inspection or repairs. Furthermore and in contrast to leasing, there is no no maximum annual mileage. A car loan also allows flexible additional payments and unscheduled repayments. Drivers can also deduct the interest in their tax returns.
Advantages of car loans:
- The vehicle belongs to the buyer
- Fully comprehensive insurance is not required
- Fewer contractual restrictions
- The car can be taken to the garage of your choice for servicing.
- Unrestricted annual mileage
- Unscheduled repayments are often possible with car loans
According to current figures, the most common use for a personal loan in Switzerland is to buy a car. 18.4 percent of Swiss people have financed their car with a car loan. You can find further facts and figures on the page Swiss Loans.
The following formalities are required for the loan:
- The applicant must either be a Swiss citizen or foreign citizen with a Swiss residence permit
- The borrower must be at least 18 years old
- The place of residence must be in Switzerland or Liechtenstein
- The borrower must have a secure, regular income and be able to prove this