Hi Folks,

I'm in the process of buying a car at the moment and, having now been in Switzerland for over 6 months, am able to apply for a loan to pay for the vehicle.

I submitted an application to gemoneybank which has resulted in an offer, however, the best interest rate they're able to offer is 13.95%!!

This seems way too high and is more than I'd ordinarily be willing to pay. I figure that the reasons for it being so high are because we do not currently have any relevant credit rating in Switzerland (does a credit rating system exist here?) and also because we are new customers to the bank. Both of which will deem me to be a high risk client, regardless of the circumstances and how much I earn.

I have considered a loan from the UK, but that's tricky as a) we don't live there anymore and b) it'll only prolong the inevitable; having to build up a reputation with Swiss banks.

Given that my wife and I have been here only 6 months, are there any lower rate of interest alternatives? We've made a deposit against the cost of the car and I don't want to lose our deposit or this particular vehicle.

Yes they suck (sorry personal opinion) I would try the migros bank they are great!

I'm not so sure that Migros bank will lend to person(s) who have not yet lived in Switzerland for 12 months, will they?

There lies our dilemma...

Is this a straight unsecured loan or a "lease" with security in the car? Later will always be cheaper.

Good point BUT they can always call and ask?

I'm really not so keen on being bound by the terms of a lease. I'd rather loan, accept the interest on said loan and then pay it all off ASAP as opposed to letting it drag on for the 36-48 months or whatever.

Calling Migros bank to find out what they have to say... Thanks guys.

Migros require you to have held a B or C permit for a minimum of 12 months.

Either I bite the bullet or don't buy a car for another six months.

You should hold back and do some more investigation. Lease rates are around 3.5% at the moment. Car ownership here is a pain, leasing may well suit your needs better.

That's all well and good, so many people talk of the fabled 'leasing' but I've not yet once seen a web site or company offering car leasing when buying private.

D'you know of any? Especially at 3.5 percent. Because I'm not seeing any.

The Bank of Geneva offer a special car loan at about 5.1% (or even less if its fuel efficient).

Renault are offering leases @ 1.9% direct from Renault garages

Once you factor in depreciation, its more like 57.8% APR
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I can talk, I have an Alfa on lease