Car loan or leasing – what suits you?

The difference in one sentence

A car loan finances a purchase; leasing finances use.

Everything else follows from this: whoever buys is the owner, bears the loss in value themselves and can dispose of the vehicle freely. Whoever leases pays for use during an agreed period and then returns the vehicle or acquires it at the agreed residual value.

Car loan and leasing compared

Criterion	Car loan at eny Credit	Leasing
Ownership of the vehicle	you are the owner from the moment of purchase	you are the user; ownership remains with the lessor
Financing amount	CHF 1,000 to CHF 250,000	depends on the agreement
Term	6 to 120 months	depends on the agreement
Cost	4.90 % to 9.90 % annual percentage rate, depending on creditworthiness	disclosed in the specific leasing offer
Down payment	not required — the loan amount is paid out	set out in the agreement
Mileage limit	none	set out in the agreement — check this point in your offer
Insurance	you choose the scope yourself	set out in the agreement — check whether comprehensive cover is required
Choice of workshop	free	set out in the agreement
End of term	vehicle is paid off and remains yours	return or purchase at residual value, depending on the agreement
Early termination	repayment possible at any time for KKG loans	set out in the agreement
Tax	check your personal tax rules	check your personal tax rules

The leasing column deliberately gives no general figures. Leasing terms differ significantly by provider and agreement, and eny Credit makes no statements about unverified third-party offers. For your comparison, use your specific leasing offer.

Loan example over 60 months

For an eny car loan of CHF 35,000 over 60 months, the following range results:

Annual percentage rate	Monthly instalment	Total loan cost	Total amount
4.90 %	CHF 657.18	CHF 4,431.01	CHF 39,431.01
9.90 %	CHF 734.68	CHF 9,080.61	CHF 44,080.61

Sample calculation without optional instalment protection insurance; rounding differences are possible.

For a genuine comparison, supplement this with at least the down payment, monthly instalments, residual value, mileage limit, insurance requirements and any return costs from your leasing offer. Without these figures, a numerical comparison would be misleading.

When leasing is the better choice

Leasing can be suitable if you

• want to change vehicles regularly after a few years,
• do not aim for ownership and do not want to organise the resale yourself,
• prefer a predictable instalment without residual-value responsibility in your own household, and the agreement genuinely leaves this responsibility with the lessor.

In this case, check the points that can distort the instalment: down payment, residual value, mileage limit, extra-mileage costs, return valuation and insurance requirements. These are set out in your agreement.

When the car loan is the better choice

The vehicle remains your property

You buy the car and become its owner from the moment of purchase. You can modify it, sell it or keep it for as long as you like. At the end of the term there is no residual value to finance.

No mileage restriction

A loan attaches no conditions to use. There is no agreed mileage limit and therefore no additional payment for extra mileage.

Check the tax treatment

The tax treatment depends on the tax year and your personal situation. Binding information is provided by the competent tax authority.

Free choice of insurance and servicing

You decide yourself how to insure the vehicle and at which garage to have it serviced.

Repayment possible at any time

With a KKG loan you can repay the loan early at any time. Higher loan amounts are subject to the contractual terms.

What to consider when comparing

1. Total cost instead of monthly instalment. A lower instalment says nothing about the overall burden. Calculate both options over the same term and the same vehicle.
2. Factor in the residual value. With leasing, the vehicle is not paid off at the end. Anyone who wants to keep it must finance the residual value or raise it from their own funds.
3. Count the additional costs. Down payment, insurance requirements, extra mileage and return valuation belong in the calculation.
4. Compare the annual percentage rate and total repayment. The annual percentage rate covers all costs of the loan and is the key standardised comparison figure.

Who can apply for a car loan

• residence in Switzerland
• employment as an employee
• Swiss citizenship or residence permit B or C

Self-employed and freelance persons, people without residence in Switzerland, and loans to businesses are not covered. Every application is assessed individually; meeting the requirements does not amount to a loan commitment.

Related pages

• Car loan — terms, process and requirements
• Loan calculator — calculate the monthly instalment and total loan cost
• Facts about personal loans — figures, rules and limits
• Maximum interest rate for consumer loans — what may be charged at most in Switzerland