In short: Leasing sells you a low monthly rate — but not freedom. If you want to drive the car for longer than three or four years, cover a lot of kilometers, or want to own it someday, a car loan is usually the cheaper option. Let's take it step by step.
The fundamental difference
With leasing, you rent the car: it belongs to the leasing company, and you pay for the use and the depreciation. At the end, you return it — or buy it at the residual value.
With a car loan, you buy the car with borrowed money: it's yours from day one. You repay the loan in fixed monthly installments and can do whatever you want with the vehicle — sell it, give it away, drive it abroad, modify it.
The math dealerships rarely show you
The leasing rate is almost always lower than the loan installment — but the comparison is rarely fair. Three items tip the scales:
- Mandatory full-coverage insurance: required with leasing for the entire term — depending on the vehicle and its age, quickly CHF 1'000–2'000 a year. With a loan, you decide for yourself.
- Mileage limit: typical contracts allow 10'000–15'000 km per year. Every extra kilometer costs — often 10–50 centimes.
- No residual value for you: after four years of leasing, you've paid — and own nothing. With a loan, you own a car that still has market value.
When leasing still makes sense
Leasing has its place: you drive little, want a new car every 3–4 years, value predictable mobility costs, and the leasing's effective rate is very low during a promotion (some brands subsidize at 0.9–2.9%). If that's how you drive, you're paying for the newest — consciously, and that's fine.
When the car loan wins
- You want to drive the car longer than the leasing term.
- You drive more than 10'000 km a year.
- You're buying a used car or one from a private seller — private sellers don't offer leasing.
- You want to negotiate like a cash buyer: with loan approval in hand, dealers often offer several percent off.
- You want to be able to exit at any time — selling and paying off the remaining balance is straightforward with a loan.
Taxes: an often-forgotten point
You can deduct the debt interest on a car loan on your tax return — leasing installments, you can't. Depending on the canton and tax rate, that adds up to several hundred francs over the term.
Bottom line
Never compare installment against installment — compare total cost against total cost, including insurance, mileage, and residual value. That's exactly the calculation we'll do with you before you decide: fast, simple, and discreet.