{"id":14855,"date":"2021-02-19T12:38:03","date_gmt":"2021-02-19T12:38:03","guid":{"rendered":"https:\/\/www.multicredit.ch\/?p=14855"},"modified":"2021-10-13T10:14:17","modified_gmt":"2021-10-13T10:14:17","slug":"differences-between-leasing-and-car-financing","status":"publish","type":"post","link":"https:\/\/multicredit.ch\/en\/differences-between-leasing-and-car-financing\/","title":{"rendered":"Differences between leasing and car financing"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Differences_between_leasing_and_car_financing-2\"><\/span><strong>Differences between leasing and car financing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You have found your next car already and it&#8217;s time to think about how you will finance its purchase. Take a look on the comparison between two of the most common car financing methods: leasing and <a href=\"https:\/\/multicredit.ch\/en\/credit\/credit-vehicule\/car-loan\/\" title=\"Auto credit Switzerland.\">car financing via auto credit<\/a>.<\/p>\n<style>\ntable, th, td {<br \/>  border: 1px solid black;<br \/>  border-collapse: collapse;<br \/>}<br \/><\/style>\n<table style=\"height: 1786px;\" width=\"100%\">\n<tbody>\n<tr>\n<td width=\"416\"><\/td>\n<td width=\"416\"><strong>Car financing<\/strong><\/td>\n<td width=\"416\"><strong>Leasing<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Mileage<\/p>\n<\/td>\n<td width=\"416\">No restriction, the car is yours and you drive as much as you like.<\/td>\n<td width=\"416\">Yes, indicated in the leasing contract. 0,3 to 0,5 CHF per additional km, if over the limit. Annual mileage allowance.<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Repayment duration<\/p>\n<\/td>\n<td width=\"416\">84 months max.<\/td>\n<td width=\"416\">60 months<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Vehicle ownership<\/p>\n<\/td>\n<td width=\"416\">You own the car.<\/td>\n<td width=\"416\">The bank<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Residual value<\/p>\n<\/td>\n<td width=\"416\">None<\/td>\n<td width=\"416\">Yes + VAT to be paid<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">CASCO insurance<\/p>\n<\/td>\n<td width=\"416\">Free to choose<\/td>\n<td width=\"416\">Mandatory full Casco coverage<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Life insurance covering the remaining balance on the loan<\/p>\n<\/td>\n<td width=\"416\">Yes, included in the interests. No additional fees.<\/td>\n<td width=\"416\">No, option to be added<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Down payment<\/p>\n<\/td>\n<td width=\"416\">Not necessary<\/td>\n<td width=\"416\">Yes, often requested<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Interest on VAT<\/p>\n<\/td>\n<td width=\"416\">None<\/td>\n<td width=\"416\">Yes<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">178 code indicated on the vehicle registration card<\/p>\n<\/td>\n<td width=\"416\">No<\/td>\n<td width=\"416\">Yes, meaning impossible to resell the vehicle to a third party<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Mandatory maintenance of the vehicle<\/p>\n<\/td>\n<td width=\"416\">Free, not mandatory<\/td>\n<td width=\"416\">Mandatory<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Contract early termination<\/p>\n<\/td>\n<td width=\"416\">Yes, at any time, lower interest charges based on the unused remaining time<\/td>\n<td width=\"416\">Possible with fees and costs<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Car purchase, discounts<\/p>\n<\/td>\n<td width=\"416\">If paid in cash, a discount can be negotiated with the seller<\/td>\n<td width=\"416\">Little negotiation<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">At the end of the contract, the vehicle can be returned<\/p>\n<\/td>\n<td width=\"416\">No, as you are the owner of the car<\/td>\n<td width=\"416\">Yes and a residual value to be paid<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">In case of accidents, whether partial or complete damage<\/p>\n<\/td>\n<td width=\"416\">The insurance company will pay you directly, according to the insurance contract.<\/td>\n<td width=\"416\">Must repair and in case of total damage, the insurance company will pay the full amount to the leasing company.<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Vehicle resale at any moment on market price<\/p>\n<\/td>\n<td width=\"416\">Yes, market price<\/td>\n<td width=\"416\">No, garage price<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Damage inside the vehicle (seat, &#8230;)<\/p>\n<\/td>\n<td width=\"416\">You are the owner<\/td>\n<td width=\"416\">If the vehicle is returned to the dealer, all the damages will be charged to the customer.<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Deductible interests and debts<\/p>\n<\/td>\n<td width=\"416\">Yes, fully deductible<\/td>\n<td width=\"416\">No deduction<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Trouble with the vehicle warranty<\/p>\n<\/td>\n<td width=\"416\">More flexibility for you<\/td>\n<td width=\"416\">You must keep on paying the leasing company.<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Vehicle is inspected when returning it to the garage<\/p>\n<\/td>\n<td width=\"416\">No, the vehicle is yours<\/td>\n<td width=\"416\">Yes, it is required by the leasing company, the garage will inspect the car<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Lawsuits or disputes over leasing payments<\/p>\n<\/td>\n<td width=\"416\">No repossession of the vehicle. You are the owner.<\/td>\n<td width=\"416\">Vehicle is taken back by garage, you are a lessee&#8230;<\/td>\n<\/tr>\n<tr>\n<td width=\"416\">\n<p style=\"font-weight: bold;\">Use of the vehicle<\/p>\n<\/td>\n<td width=\"416\">Free<\/td>\n<td width=\"416\">Restriction against who drives<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Article written by <a href=\"https:\/\/www.linkedin.com\/in\/m\u00fcn\u00fcr-aslan-credit-leasing-factoring\/\" target=\"_blank\" rel=\"noopener\">M\u00fcn\u00fcr ASLAN Managing Director<\/a> of <a href=\"https:\/\/multicredit.ch\/en\/credit\/loan-buyout\/lease-refinancing\/\">Cashflex MultiCredit S\u00e0rl<\/a>\u00a0in <a href=\"https:\/\/g.page\/Multicredit?share\">Fribourg Switzerland<\/a>.<\/p>\n<p><a href=\"https:\/\/www.linkedin.com\/in\/maslan-credit-kredit-loan\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone \" src=\"https:\/\/www.multicredit.ch\/wp\/wp-content\/uploads\/icons-linkedin.svg\" width=\"55\" height=\"55\" alt=\"\" title=\"\"><\/a><a href=\"mailto:info@multicredit.ch\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone \" src=\"https:\/\/www.multicredit.ch\/wp\/wp-content\/uploads\/icons-email.svg\" width=\"55\" height=\"55\" alt=\"\" title=\"\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Differences between leasing and car financing You have found your next car already and it&#8217;s time to think about how you will finance its purchase. Take a look on the comparison between two of the most common car financing methods: leasing and car financing via auto credit. Car financing Leasing Mileage No restriction, the car [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":11487,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[258,307],"tags":[],"class_list":["post-14855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-en","category-car-credit"],"_links":{"self":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/14855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/comments?post=14855"}],"version-history":[{"count":25,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/14855\/revisions"}],"predecessor-version":[{"id":21300,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/posts\/14855\/revisions\/21300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/media\/11487"}],"wp:attachment":[{"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/media?parent=14855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/categories?post=14855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/multicredit.ch\/en\/wp-json\/wp\/v2\/tags?post=14855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}