Your car loan with LEND
It is finally the time to buy that dream car? Or with your recent family addition you no longer fit into your sports car and are looking to buy a van? What is the best option for financing your new vehicle?
You found your new car and now need to to decide how you best finance the purchase. Certainly for a new car you thought about a leasing. It often makes sense to compare leasing with an online auto loan. Because you may not only be able to negotiate better terms and conditions but you actually take ownership of the car and are independent from the car dealer, manufacturer or importer.
Benefits of an auto loan
New cars, used cars, “Jahreswagen” or a collector’s item - with a car loan you decide which kind of vehicle you finance. The loan is not dependent on the brand or model you choose which means you are independent. You may even go for a motorbike or mobile home, no constraints whatsoever.
¤ The effective interest rate is between 3.50% and 9.80% and is dependent on your credit score and selected loan term. For a loan of CHF 10’000.- and 12 months the interest cost and fees range between CHF 190.60 and CHF 515.34. The total sum is thus between CHF 10’190.60 and CHF 10’515.34. The grant of a loan is prohibited if it leads to the over-indebtedness of the consumer (Art. 3 UWG).
Low rates from 3.5%
Finally, financing your purchase with a personal loan is often possible at better terms than your leasing package with its down payment, monthly payments and residual payment. What looks attractive at first may turn out to be a rather costly exercise: for example the requirement for a fully comprehensive insurance or the fees you are required to pay if you wish to repay the leasing early. In a nutshell, the effective costs of a leasing can be significantly higher than the price tag would indicate. This is where you will want to take a close look and save money.
And then there are tax benefits
"Particularly with a limited budget a leasing contract can turn out to be a “ticking time bomb”. In any event you will be better off getting a personal loan to buy that used car."
Debt counsellor Roncoroni on SRF