Leasing, and in particular one of its forms, leasing with a purchase option, is favoured in many areas. But the sector that benefits most from it is the automobile sector. Indeed, more and more private individuals, but also companies, are using this type of financing to obtain a new or recently used vehicle. The reason : The flexibility of this type of financing, which has the effect of reducing the use of traditional credit methods.
A market that is developing strongly
The leasing market in general, and the car market in particular, is experiencing very strong growth. This new way of financing the purchase of a car has been very successful in Switzerland.
It is estimated that one out of every two vehicles in Switzerland is purchased via car leasing. This is why many car dealerships now offer this type of financing.
Car leasing allows you to acquire a new or recently used car without having to buy it in the first place, i.e. without having to bear the full cost of its acquisition. It can be taken out with or without an initial deposit. It is a form of leasing which generally lasts between three and five years and whose monthly payments are, most of the time, lower than those of a traditional credit because only the use of the leased vehicle is taken into account. They may also include services such as vehicle maintenance or the cost of comprehensive insurance, which is mandatory for a leased vehicle, for example. At the end of a period determined at the beginning of the lease, it is possible to buy the vehicle and become its owner by paying the residual value.
The success of car leasing, particularly among private individuals in Switzerland, is due to the advantages it can provide. Firstly, it provides security and makes it easier to manage their budget. Secondly, it allows people to drive a top-of-the-range vehicle that would be too expensive to buy with conventional financing. Car leasing in Switzerland offers the opportunity to change vehicles regularly.
A growing market thanks to professionals
The car leasing market, which is already growing thanks to private individuals, is now relying more and more on the demand from companies to develop further. Acquiring a new vehicle or a recent second-hand car represents a very significant investment for a large number of professionals who nevertheless need a company vehicle for their activity.
Car leasing therefore offers companies the possibility of securing and accurately forecasting the expenses related to a business vehicle. It is also a good way for them to easily renew their car fleet and to opt for a vehicle with the latest technological developments, for example.
Advantages and disadvantages of car leasing
Not only does leasing allow you to pay lower monthly payments, it also offers the opportunity to change vehicles regularly. In some cases, the manufacturer’s warranty is valid for the duration of the lease and the total cost of financing is determined in advance. The main disadvantage of leasing is that the overall cost of the vehicle is higher than that of a car loan.
Leasing or car loan ? It all depends on the needs of the individual motorist. In particular, you have to choose between lower overall costs or lower monthly payments, owning your car or being able to change your car regularly without having to worry about taking back the leased car.
