Financing your car

Car financing

Car financing |
Paying for your car in cash is definitely the cheapest option. However, there are times when you may need additional funds to make the purchase. In this case, you need to know which makes the most financial sense – a lease or a loan?
At first glance, leasing may appear the more favourable option. But bear in mind that there is more to leasing than just the annual interest charges. You need to consider that factors such as ownership, insurance costs, mileage, taxes and contract duration also affect the total cost of a vehicle over its entire useful life.

> Would you like to own your car?

Personal loan comparison

Calculate the cost of your personal loan – and compare products.

How much does a car lease really cost?

> If you want to drive an expensive new car, you can negotiate attractive rates and conditions with a lease

Calculate the lease payment for your preferred car and obtain an estimate of the approximate costs involved:


Example: Lease vs. loan

  Lease 4.9% Loan 7.9%
Purchase price of car 30,000 30,000
Residual value 12,000  
Financing amount 18,000  
Duration in months 48 48
Interest rate 4.90% 7.90%
Monthly cost 458.90 727.15
Total cost of instalments 22,027 34,903
Total cost including acquisition of car 34,027 34,903
Difference in financing   876
Difference in insurance   -804
Total difference (savings compared to loan)   72

Assumptions / explanations

According to analyses by, full casco insurance for a leased car costs on average 200 francs more per year than that for a non-leased car. The costs of a lease at 4.9 percent roughly correspond to those of a loan at 7.9%.

Hidden costs of a car lease

Many people do not realise how expensive leasing really is when they sign a lease contract.

The 6 great advantages of a car loan at a glance

  • Ownership

    The car is yours right from the start. This means that you may use the car in any way you like.
  • Termination

    If you suddenly find yourself in financial difficulties, you are free to sell the car and terminate the personal loan.
  • Choice

    You do not have to rely on a specific repair shop, but are free to choose the cheapest provider.
  • Decide

    It is you who decides which parts should be repaired, not the leasing company.
  • Flexibility

    After two to three years, you can switch to cheaper partial casco insurance or you may even choose to get partial casco from the beginning.
  • Deduct interest costs

    In your tax declaration, you can deduct the interest paid from your income. If you lease a car, you cannot make any deductions.
Money and personal loans are sensitive subjects. But I never once felt uncomfortable, and would like to thank Credaris for their wonderful work and excellent service.
A.K., Credaris customer
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Since I found out that I can avoid a negative credit record by finding a loan through Comparis/Credaris, this is who I turn to first – in the knowledge that they will find the right loan for me.
M.K., Credaris customer
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Many thanks for such terrific support. Your painstaking approach meant that I was able to find a loan despite my situation.
R.R., Credaris customer
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I would not hesitate to recommend the services of Credaris and the experience I had with them. Their attitude was consistently friendly and positive, which is not always a given.
W.B., Credaris customer
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Their attitude was consistently friendly and positive, which is not always a given.
S.B., Credaris customer
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Fast, reliable and non-binding

The team of experts at Credaris, a partner service of Comparis, will help you select the right lender and the best loan for your needs.