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Choose the right option

• Auto loan (dedicated personal loan)

You become the owner of the vehicle from the moment of purchase.
Fixed monthly instalments, and you can sell the car at any time.
Full comprehensive insurance recommended, but not always mandatory.

• Leasing

You are not the owner (registration document is in the lessor’s name).
Mileage limits and possible return fees.
Full comprehensive insurance generally required.
MultiCredit advice: we compare loan vs. leasing (total cost, flexibility, insurance obligations) and propose the most economical scenario based on your profile.

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Eligibility criteria (key principles)

• Stable income in Switzerland, positive budget after expenses (“stress-tested” affordability check).
• Debt collection records: ideally none recent, or already settled.
• Age & permit: legal adult, valid residence permit.
• Vehicle: amount must match the value, age and mileage
  (some lenders limit age > 8–10 years or >150,000 km for certain loan amounts/terms).

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Documents to prepare

Identity & personal situation

• ID/passport + B/C/G residence permit, proof of address.
• 3–6 payslips (or AVS/accounts for self-employed), employment contract.
• Recent debt collection register extract, bank statements (often 3 months).

Vehicle

• Offer/pro forma invoice from the dealership (brand, model, VIN, price, options).
• For a used car: technical inspection report (if available), service booklet, mileage.
• Buying from a private seller: signed sales contract, copy of the registration document, full contact details.

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Budget your monthly payment (simple benchmark)

• Over 48 months, count approx. 24–25 CHF per 1,000 CHF borrowed
  (typical reference with standard APR ranges).
  Example: 20,000 CHF → approx. 490–500 CHF/month.
  Best practice: always leave a safety margin after fixed expenses (rent, insurance, taxes, other loans).

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Secure your purchase (new & used)

• Professional dealer: legal/contractual warranty, trade-in possible, full history.
• Private seller: get an independent check (TCS/mechanic), verify VIN & any liens, write clearly “payment subject to loan approval”.
• EU import: anticipate VAT, homologation, plates and processing time.

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MultiCredit process (step by step)

1. Free pre-check: feasibility, loan vs. leasing comparison, target monthly payment.
2. Structuring: full “standard auto loan” file (personal documents + vehicle pack).
3. Market comparison: selection of the most suitable lenders (new/used, age/km, profile).
4. Optimisation: adjust amount/term/down payment to obtain a clean first approval.
5. Funds release: money sent to the garage/seller (or to you depending on the case), then registration/insurance.
6. After approval: check APR/fees, set up direct debit (day after salary payment).

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Common mistakes to avoid

• Underestimating insurance (comprehensive) and maintenance (tyres, servicing).
• Forgetting to declare existing loans/leases.
• Overestimating the trade-in value or ignoring registration fees.
• Submitting multiple applications at the same time (damages your scoring).
• Choosing too long a term for an older vehicle (risk of forced resale).

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Quick FAQ

• Can I sell the car if I take a loan?
  Yes, you are the owner; you simply repay the outstanding balance.
• Down payment?
  Not required for a loan; often recommended in leasing to reduce the monthly payment.
• Electric/Hybrid?
  Check battery warranty (SoH), insurance costs, and residual value; we adapt the loan term accordingly.
• Cooling-off period?
  In consumer credit, 14 days after receiving the countersigned contract (Swiss Consumer Credit Act).

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Ready-to-send checklist

• Identity + residence permit
• 3–6 payslips (+ AVS/accounts if self-employed)
• Debt register extract + 3 bank statements
• Vehicle offer/invoice (with VIN)
• Used car: inspection report, service booklet
• Private seller: sales contract + registration copy

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MultiCredit Contact – Fast & Free Advice

• Phone: 026 322 23 10
• Mobile/WhatsApp: 079 936 31 75
• Email: info@multicredit.ch
• Office: Rue de la Banque 4, 1700 Fribourg (appointment required)

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An article by Munur Aslan, Director of Multicredit.

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