Why is a car loan usually cheaper?

class=”sc-3778e872-0 cKDKQr”>

Do you want to buy a new car but do not have enough money? Then either a loan or leasing is in question. Many choose the latter, but forget about the numerous restrictions and hidden costs, and ignore the fact that a low-interest car loan, for example, debit.ch, would be significantly more advantageous.

A look at the small post: This is how much the rental actually costs

Ads lure in so-called “zero rentals” and low monthly fees, while additional fees drive up costs, even with these so-called no down payment:

• Full coverage insurance is almost always mandatory for rental vehicles and can be up to 25 percent more expensive than purchased vehicles.
• Inspection or service should be performed at regular intervals and can only be performed by expensive authorized service centers.
• Annual driving kilometers are usually limited to 10,000 kilometers.
• If the mileage is exceeded, an additional fee will be charged for each additional kilometer.
• High fees have to be paid if the rental agreement is terminated early.
• Despite usage fees in the form of monthly rental fees, there may still be wear and damage costs to the vehicle at the end of the period.

Here’s a simple example calculation comparing baseline costs for rentals and car loans:

Although the monthly rate of the leasing offer in the example calculation is lower, it is understood that the vehicle loan is a more attractive option when you buy the vehicle at the latest. Moreover, it does not yet take into account all the cost factors mentioned above. The basic rule of Touring Club Schweiz (TCS) applies here: It recommends calculating the actual monthly expenses at three times the rental rate to avoid any nasty surprises with all the potential cost traps.

Enjoy complete freedom with a car loan

Leasing is just a usage cycle. In simple language, this means that if you don’t initially have a purchase option in the contract, you do not own the car and must return it after the agreed time. But even in these cases, the vehicle cannot always be “purchased” at residual value, but only at a significantly higher market value.

So if you value flexibility and freedom and want to decide for yourself about sales, insurance and mileage, you should definitely use a car loan to buy.

Small budget? A used car is worth it here

If you need to be careful with money from the start, don’t be fooled by opaque rental offers with supposedly cheap monthly rates. If you are on a tight budget, it is therefore recommended to choose a well-maintained used car and buy it with cash on credit. Used cars are significantly cheaper than new cars, in no way inferior to them in quality, and at the same time more sustainable. Financing with a cheap car loan from LEND can also be easily secured online.

Conclusion: Auto loans are better than their reputation

Although car rental is promoted as an inexpensive and uncomplicated solution to buying a car, a rental agreement has a number of pitfalls. On the other hand, a good-term car loan offers important advantages: On the one hand, as the owner, you have complete freedom of choice regarding the choice of mileage, insurance and service. In addition, interest paid on the vehicle loan may be taken into account for rental costs and tax purposes that are not possible. If you get a low interest car loan like Lend.ch, you can save a few francs and a lot of stress compared to the total rental cost.

Source : Blick