Leasing or credit: which solution to choose to finance your car in Switzerland?

Which formula is truly advantageous for you? RG Automotive helps you make an informed choice based on your usage, priorities and budget.

1. Leasing: rent your car for several years

Leasing is a form of long-term rental. You pay a fixed monthly payment to use the vehicle for a defined period (often between 36 and 60 months), then you return it at the end of the contract.

Advantages of leasing

• Lower monthly payments than a traditional credit, as they are based solely on depreciation.
• You drive a recent and well-equipped car.
• No resale concerns to manage.
• Maintenance sometimes included, depending on the offer.

Disadvantages to know

• You are not the owner of the vehicle during the contract period.
• The dealer has priority over the residual value.
• Mileage limitations with fees in case of overage.
• Early termination difficult and often costly.

Ideal profile: drivers who want to change vehicles often, control their monthly budget, and avoid resale constraints.

2. Car credit: become the owner from the start

Car credit is a personal loan intended to finance the purchase of a vehicle. You repay the total amount in fixed monthly installments, and the car belongs to you from the beginning.

Advantages of credit

• You are fully the owner of the vehicle.
• No mileage limit to respect.
• You can resell, modify or exchange the vehicle freely.
• Certain profiles can benefit from advantageous rates.

Disadvantages to know

• Monthly payments often higher than for leasing.
• You manage maintenance, resale and administrative procedures yourself.
• May require a down payment or good creditworthiness to obtain a good rate.

Ideal profile: people who want to keep their car for several years, who want to make it a personal or family investment.

3. Quick comparison: leasing vs credit

Criteria

Leasing

Car credit

Ownership

No (rental)

Yes

Freedom to resell

No

Yes

Mileage limited

Yes (with fees if exceeded)

No

Monthly payments

Lower (residual value)

Higher (full purchase)

Maintenance included

Sometimes

No

Possibility of buyout

Yes at the end (not guaranteed)

Yes

4. Concrete example: vehicle at CHF 19'400.–

Here is a financing simulation based on an initial price of CHF 19'400.–:

• Leasing
  – Down payment: CHF 4'000.–
  – Amount financed: CHF 19'900.–
  – Monthly payment: CHF 366.20
  – Rate: 6.59%
  – Limit: 10'000 km/year
  – Residual value: CHF 1'000.–
  ➡️ Total cost spent: CHF 22'577.60
• Credit
  – Down payment: CHF 5'000.–
  – Amount financed: CHF 14'900.–
  – Monthly payment: CHF 384.74
  – Rate: 10.95%
  ✅ You are the owner of the vehicle
  ✅ No mileage limit
  ➡️ Total cost spent: CHF 23'467.–

Conclusion:
Leasing is approximately CHF 890.– cheaper, but credit offers you full ownership of the vehicle and complete freedom of use.

ℹ️ Note:
Monthly payments may vary slightly depending on the rates offered by the bank, and leasing approval is often simpler than credit approval.

5. RG Automotive's advice

At RG Automotive, we support you in both cases:

• Financing of a used or recent vehicle
• Customized solutions in leasing or credit, adapted to your budget

We collaborate with several Swiss institutions to offer you the best rates and the most advantageous conditions.

Request your free simulation

Still hesitant between leasing and credit?

Simulate your financing with RG Automotive