On the basis of comparis.ch assessments, total helmet insurance for a leased car is on average 200 francs more expensive per year than a car purchased differently. A 4.9 percent lease corresponds to the costs of a 7.9 percent credit.
Hidden costs of car leasing
In fact, many people, when they enter into the leasing contract, do not know how expensive it can actually be.
Car insurance – The leasing holder is required to take out full insurance, generally very expensive. Even after a couple of years, you cannot switch to cheaper partial helmet insurance. Add to this the fact that the total helmet for leased vehicles is even more expensive than for purchased vehicles.
Taxes – As a private individual, credit interest can be deducted from taxes, but not leasing interest. For freelancers, leasing can be more sensible because it is counted through the company and can therefore be deducted from the profit.
Assistance – The leasing company can contractually oblige the technical assistance of the car to be carried out only by extremely expensive brand mechanics. Especially at the time of the return, when the leasing contract expires, the costs can become considerable. Why? Because the mechanic or dealer must purchase the vehicle from the leasing company at the residual value and therefore it is in his best interest to bill the customer for as many repairs as possible.
Mileage exceeded – A maximum number of kilometers per year is indicated in the leasing contract. If you exceed this amount, every extra kilometer is expensive.
Ownership – During a leasing contract, the car does not belong to the leasing owner. The car can therefore not be sold or lent to third parties at will. Without an explicit purchase option in the leasing contract, even after the lease expires, you have no right to the vehicle.
In this case the dealer buys the car at the residual value. This value is generally lower than the market value because the customer has already depreciated it, precisely, using the vehicle up to that moment. Put simply, if we want, the dealer gets a profit at the expense of the leasing owner. Instead, by financing the car with a credit, it can be sold at any time at market value and even taken advantage of, if this is higher than the credit that remains to be paid.
Financing problems – If the conditions of one’s income or life situations change in the short term and suddenly one realizes that he can no longer afford the leasing, early termination will cost a lot. Instead of being able to overcome a period of economic hardship, for example, by selling the vehicle, a possible leasing would cause even greater financial difficulties.
