How leasing works
A car lease is a contract in which a leasing company owns the car and you use it for a fixed time. In Switzerland the contract is called a Leasingvertrag. Here is the usual path, from choosing a car to giving it back.
Choose your car
Decide on the model, equipment and how you will use it. Think about how many kilometres you drive in a year, because that sets the limit in your contract.
Get an offer
The offer states the purchase price, the term in months, the monthly rate, any down payment, the Restwert (the value the car is expected to have at the end) and the Kilometerlimit (the yearly distance included).
Check your eligibility
The leasing company looks at whether you can afford the rate. Leasing is treated as a form of consumer credit in Switzerland, so expect this check and read the contract carefully.
Sign the Leasingvertrag
Read every line: term, rate, kilometre limit, charges for extra kilometres, insurance requirements and what happens if you end the contract early. Ask questions before you sign.
Insure and drive
The leasing company owns the car, and it usually requires comprehensive insurance (Vollkasko) for the whole term. Keep up the servicing the contract asks for.
The end of the contract
You normally have these options:
- Return the car. It is checked for condition and kilometres; extra kilometres or damage beyond normal wear can be charged.
- Buy the car, usually for the Restwert named in the contract.
- Start a new lease with another car.
Words you will meet
- Leasingvertrag
- The lease contract.
- Restwert
- Residual value: the expected value of the car at the end of the term.
- Kilometerlimit
- The distance per year included in the rate.
- Leasingrate
- The monthly payment.
Want numbers? Try the example calculator. For decisions about a real contract, ask the leasing company and read the contract itself.