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When we look at the statistics, we see that our streets are becoming increasingly crowded. While around 3.5 million private vehicles were registered in Switzerland at the beginning of the millennium, last year this number reached almost 4.8 million, an increase of 41 percent! It is assumed that most cars are already leased, bought on credit, so to speak. Now a new study from comparis.ch provides concrete information.
One in two cars is financed externally
Market research institute Innofact conducted a representative survey on behalf of Switzerland’s largest comparison portal. This shows that only 45 percent of vehicle owners pay for their vehicles out of their own pocket. Gender differences are interesting: 51 percent of women pay for a car with their own money, compared to only 40 percent of men.
There are also differences depending on the region of the country. In German-speaking Switzerland, 51 percent of automobiles are financed from their own resources, in French-speaking Switzerland it is 34 percent and in Ticino only 21 percent. “This corresponds to the overall debt in the language regions. In Latin Switzerland, leasing as well as installment payments, borrowing, loans from family and friends or overdrafts are significantly more common,” says Sandro Spaeth, mobility expert at Comparis.
Young people rent more
At 31 percent, leasing is the most popular form of financing with third-party money. The leased vehicle stock was around 640,100 at the end of 2022. Leasing is particularly popular among young drivers: more than a third of those under 55 finance their vehicle this way, while only 18 percent of those over 55 do so. Income also plays a role because, according to the research, leasing is much more common in the middle and upper income classes than in households with incomes of up to 4,000 francs per month.
Approximately nine percent of survey respondents bought their vehicles with a loan, and approximately seven percent with a loan from family or friends. Here too, young drivers are more likely to ask relatives for money (13 percent of those aged 18 to 35) than the older generation (seven percent of those aged 36 to 55, two percent of those aged over 55).
Debt financing is more expensive than a cash purchase
Car subscriptions, launched in Switzerland about five years ago, are not yet a widely used tool in car financing, with a market share of around three percent. “A car subscription is usually only good for a very limited time. Otherwise, this flexible solution will quickly become more expensive than leasing or cash purchase,” explains Spaeth.
In general, debt financing is more expensive than a cash purchase. “If you absolutely need a vehicle to get to work but do not have the necessary facilities, you should choose the cheapest vehicle possible or a used vehicle or even look at car sharing. In the case of a rental or subscription, it is also important to take into account the contract period and mileage limit,” says expert Spaeth.
The most important thing for the Swiss is low maintenance costs and flexible vehicle availability. Less important are the freedom to choose insurance and maintenance, the purchase price and ownership of the car in general. Additionally, nearly half of those surveyed don’t care whether the car is new or not. 62 percent of respondents say financial reasons are the deciding factor if Swiss people decide not to own a car.
Source: Blick
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
