Car loan: These are the advantages

Car loan instead of leasing: Why a cash payment is often a more intelligent solution than leasing.
Car purchase
That's what really matters.
  • If you calculate the total costs, it is quite possible that a car loan is cheaper than a lease agreement.

  • Car loans give you flexibility: If your circumstances change, you can sell your car and repay the loan early at any time.

  • Many car dealers will give you an additional discount for cash payments.

  • It's a good idea to book a free personal consultation with BANK-now before looking for a new car.


Car loan: These are the advantages
Woman with pink convertible standing in a car park with the sea in the background

"At first glance, the interest rates for a loan may appear to be higher. But if you calculate the total costs, it is quite possible that a loan will be the cheaper solution," says Fernandes. For example, with a car loan you do not have to take out comprehensive insurance and the interest is deductible in your tax return.

There are also no mileage or age restrictions for car loans: While leasing is often not possible for a vehicle with over 100,000 kilometers on the clock, there is no problem taking out a loan for it.

A car loan offers greater flexibility

Car loans also offer benefits in terms of flexibility. With leasing, the term is usually three to five years, whereas with a loan, a term of up to seven years is possible. "You can stretch the term a bit, which gives you more flexibility," says Fernandes.
At the end of the contract, the car does not belong to the lessee. They must return the car to the dealer, or can choose to buy it by paying the residual value. When financing via a car loan , you are the owner right from the start. This is another aspect that provides more freedom. It means the car can be sold at any time and the loan can be paid back early.

It is worth taking advantage of a free and non-binding consultation with BANK-now early on in the process.
Patrick Fernandes, Zurich City Branch Manager
Patrick Fernandes from BANK-now

"Many clients also appreciate the fact that, as owners, they are free to make changes to their car," says Fernandes. In contrast, a leased car has to be returned exactly as it was received.

Additional discounts at car dealers

Many garage owners are happy when you pay for the car in cash with a loan because it means less work for them. There is therefore often an additional discount for you when paying in cash.

Patrick Fernandes advises taking advantage of a free and non-binding consultation with BANK-now early on in the process. "It's annoying when you've fallen in love with a vehicle that costs CHF 70,000 and then realize that the budget will only cover CHF 40,000." It makes sense to find out how much you have to play with in advance. "This makes the search for a suitable vehicle more efficient and enjoyable," he says.

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