Buying a new car in Switzerland : pay cash, choose leasing, or opt for a loan?

Leasing or Loan ? or Cash ?

Buying a new car isn’t just about color or model. The real question is how to pay for it!

In Switzerland, there are three main options: pay cash, lease, or take out a loan. Each has its advantages and its little traps.

1. Pay cash 💸

It’s simple: you pay all the money at once, and the car is yours, immediately.

It’s the ideal solution, causing the least financial impact on your monthly income.

The pros

• No debt, no interest.

• You can sell your car whenever you want, no strings attached.

• It’s settled, no more worries.

The cons

• It creates a hole in your account all at once. You need to keep some margin just in case.

• The money tied up doesn’t earn anything, but with current rates, it’s often better than paying interest if you have the cash available.

2. Leasing 🚗

Rent the car for several years (usually 4 years).

You pay a monthly fee to use it, but the car remains the property of the leasing company. At the end, you return it or can buy it so it really becomes yours.

The pros

• Monthly payments often lower than a loan.

• You change cars regularly, great if you like new things (but it has a cost).

The cons

• You’re never really the owner.

• Watch the kilometers and the car’s condition, or it can get expensive after 4 years.

• Rates have risen in recent years: it costs much more than before.

3. Auto loan 💳

You borrow from the bank to pay for your car, which is yours right away.

The pros

• The car is yours immediately.

• You can sell or trade it whenever you want.

• You keep your savings for other projects.

The cons

• Interest rates can be high (between 5% and 9%).

• Fixed commitment: you must pay every month.

  
  

In short, how to choose? 🤔

Criterion	Cash	Leasing	Auto loan
Ownership	Immediate	Never	Immediate
Monthly cost	None	Low to medium	Medium
Interest	None	Yes	Yes
Freedom to sell	Total	Limited	Total
Impact on savings	Significant	Low	Moderate

Conclusion

Between leasing and auto loan, there’s no one-size-fits-all solution. It all depends on your financial situation, your priorities, and especially the concrete conditions offered to you.

For a car around 30'850 CHF with a resale value around 18'000 CHF after 4 years, leasing can sometimes be slightly more advantageous, notably thanks to lower monthly payments and competitive rates.

That said, the loan offers the advantage of immediate ownership, which can be interesting if you want to keep or resell the vehicle later.

In summary, possible savings can tilt either way, depending on interest rates, buyout conditions, and your ability to make an initial payment.

The key is to carefully compare the different offers, considering all costs before making a decision.

We are happy to assist you in comparing the various financing options.