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Switzerland is a country of automobiles: there is one car for every two residents. Mobile freedom has a high status – which is truly surprising considering the costs – but many people depend on a car for work and leisure. A comparison of 22 European countries makes it clear that nowhere to drive is more expensive than in Switzerland. The total operating cost in Germany is 1138 Euros per month, which is equivalent to about 1100 Francs. This is demonstrated by Leaseplan.com’s Car Cost Index 2021, one of the world’s leading rental providers.
At 1100 francs, you pay about 53 percent more in this country than in Greece, where it is cheapest to drive in European comparison. According to the Federal Statistical Office, mobility is the second largest item in the household budget in Switzerland after housing.
Total cost makes the difference
Therefore, it is important to calculate the total cost for your own car exactly. Because many drivers assume that the costs are too low, as a study by the University of Mannheim and Yale University in the USA shows. Car owners surveyed underestimated the cost of their cars by almost 50 percent.
In addition to the purchase price or monthly rental fee, total costs should include fuel, depreciation, taxes, insurance and maintenance. Expenses included in the monthly flat price for a Carvolution subscription. The only additional cost is for fuel or charging current. For example, the Opel Corsa 1.2 Turbo Edition is available for 439 Francs per month or the Seat Arona FR for 499 Francs per month instead of 519 Francs.
As the examples below show, some mistakes and misconceptions persist about the running costs of an automobile.
Misconception 1: “I only have to pay for gas”
Even if you pay for your car in cash, you will have more costs than fuel. That’s because taxes, insurance, and service accrue throughout the year, but they need to be considered. And only if you factor in depreciation and amortization and set that amount aside, you can buy a car in the same price range again when you switch vehicles. Fuel or electricity accounts for 10 to 23 percent of total costs, depending on the type of driving, according to the Car Cost Index 2021. However, given the geopolitical situation, spending on gasoline, diesel or electricity can fluctuate greatly. New vehicles have a significantly lower consumption, electric cars are currently the best in terms of energy costs.
With a Carvolution vehicle subscription, all costs other than fuel or charging current are included in the monthly flat rate. Customers receive discounts on fuel or charging current with their Avia fuel card or evpass membership. Thanks to the partnership of MyClimate and Carvolution, emissions can also be offset free of charge if desired.
Myth #2: “My rental car costs me only 199 francs a month”
The rental price in the ad is tempting: owning a car can be very cheap. Various truths are concealed at the same time. The amount of the rental fee depends on the down payment made during the entire rental period, the agreed term and the mileage package. In addition to the leasing fee, there are costs for taxes, insurance, service and maintenance, and tires. Touring Club Switzerland (TCS) recommends multiplying the rental price by 3 to know the actual costs.
All costs excluding fuel are included in the monthly flat price of the Carvolution vehicle subscription. There are no extra costs. The mileage package can be adjusted monthly directly in the Carvolution app. This way, additional mileage costs can be easily excluded.
Myth #3: “After the rental, the car is mine”
This misconception persists: After the lease expires, the car is paid for. Of course that’s not the case. The advantage of leasing is that the capital expenditure is significantly lower than when buying a car, and the tenant does not have to worry about resale or residual value. That’s because the car eventually goes back to the leasing bank – and could possibly be bought as a used car. In most cases, the selling price corresponds to the market value of a used car. Installments were not paid for the car, but only for its use.
A Carvolution car subscription also corresponds to a long-term rental. But subscription is different from rental: insurance, taxes, service, maintenance and tire costs are included in the monthly flat rate. Maturities between 3 and 48 months can be selected. The mileage package can be adjusted monthly. No prepayment required, a one-time order fee of CHF 390 is required for new customers.
Myth #4: “A car subscription is expensive”
“Yes, subscription prices seem a bit high at first glance,” says Léa Miggiano. As one of the founders of Carvolution, he often faces this prejudice. This is because many car owners misjudge the total costs. “As a result, these are often underestimated and our monthly flat rates, which cover everything from insurance to taxes to tires and services, seem expensive,” Miggiano explains.
But as a test by the Comparison portal Comparis shows, the monthly subscription price on Carvolution is still cheaper than on leasing. “A car subscription is often cheaper than renting,” Comparis sums up, the high degree of flexibility making the subscription even more attractive. Automobile expert Ferdinand Dudenhöffer from the CAR Center in Duisburg (Germany) also said: “The car subscription is simple, transparent and inexpensive for the customer.”
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.
