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Car Loan

There are 6.2 million vehicles on Swiss roads. Vehicle financing should always be well considered. Nowadays, in addition to the classic cash payment, there are other, more flexible financing methods for the purchase of vehicles - so that you can afford a vehicle even during possible financial shortfalls.

 

  

 

Car Loan

There are 6.2 million vehicles on Swiss roads. Vehicle financing should always be well considered. Nowadays, in addition to the classic cash payment, there are other, more flexible financing methods for the purchase of vehicles - so that you can afford a vehicle even during possible financial shortfalls.

A car loan is a way to finance a vehicle purchase; it is a personal loan that is repaid in monthly instalments.

In many cases, this is referred to as an appropriation-based car loan. This appropriation makes the loan less flexible and ties the loan to the purchase of a corresponding vehicle. Unlike the personal loan, the purpose-tied car loan can also be transferred directly to the seller of the vehicle (e.g. workshop/car dealership). Crowd4Cash does primarily offer non-appropriated car loans.

 

Other financing methods for vehicles

The classic financing method - cash - is essentially the cheapest way to buy a vehicle. However, the buyer must have the necessary liquidity.

Another way to purchase a vehicle is leasing. Leasing a vehicle is equivalent to a rental-purchase agreement, whereby the lessee does not become the owner of the vehicle. The lessor - who remains the owner of the vehicle - grants the lessee the right to use the vehicle against payment of a monthly leasing instalment. The instalment is calculated on the basis of the duration of the contract, the leasing interest rate, the down payment and the residual value. The longer the contract period, the smaller the leasing instalment. Certain restrictions can also be agreed in a leasing contract, such as a kilometre limit.

 

Difference between leasing and a car loan

It is important to know the difference between leasing and a car loan in order to assess which option is more suitable. If you want to be the owner of the vehicle, a car loan is the way to go. In contrast to leasing, you do not pay the instalments to use the vehicle, but to pay the purchase amount. The car is already yours when you sign the contract. However, if you only want to rent the vehicle, leasing is the more appropriate financing method.

 

Advantages of the car loan (personal loan)

With the car loan, in difference to leasing, a few more advantages come into play:

 

Cost: In most cases, a car loan is cheaper than leasing (read more in our blog). Similar to the personal loans at Crowd4Cash, the interest rates are between 3.9% and 8.9% with full cost transparency.

 

Ownership: When purchasing the vehicle, the power of disposal over the vehicle remains with the borrower.If you find yourself in a financial bottleneck, you can also sell the car again (the entry code 178 is usually waived).

 

 

Flexibility: You can buy your car wherever you want (not contractually fixed). You are also not obliged by contract to use a certain service garage. A car loan can also be used without restriction for second-hand or collectors' cars (e.g. vintage cars).

 

Insurance: There is no obligation to take out expensive comprehensive insurance.

 

Repayment: Since it is a loan, it can be repaid early at any time, whereas leasing usually involves high early repayment penalties.

 

Interest deduction: The interest on the debt can be deducted from your income.

 

How do I get a car loan?

Obtaining a personal loan or car loan is based on the identical procedure as for a personal loan. Credit rating, income, creditworthiness and credit capacity play a central role.

At Crowd4Cash you can calculate your car/personal loan free of charge here.

If you have already decided and would like to finance your vehicle with a car loan, we invite you to enter your application right here. We wish you much joy with your new vehicle.