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Old 12.06.2017, 16:28
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Leasing versus buying in CH

The leasing plan for our company car has now been replaced with a monthly cash allowance....so now we need to look for a car.
So, is it better to buy in CH or Germany? Or, is it better to lease a car from the dealer in Germany or CH?

Anyone got recent experience of these options? All advise and help appreciated
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Old 12.06.2017, 17:06
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Re: Leasing versus buying in CH

In my humble opinion, finance.

Because, with the Leasing, you will pay for a car that at the end you might not have, or you could end up paying more.

Also, whenever you want you can just sell it and pay the rest of the financement, and end for the ties with the bank (and sometimes get most of your cash back )

Another thing, you could invest certain amount of cash, lets say, in stocks that pay some dividends, and part of the car could be paid like this
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Old 12.06.2017, 17:13
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Re: Leasing versus buying in CH

Depends on your usage of the car.
How many Kms per year do you do? And also how often do you want to change your car?
Those are the main factors that would make a leasing interesting or not.
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Old 12.06.2017, 17:18
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Re: Leasing versus buying in CH

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The leasing plan for our company car has now been replaced with a monthly cash allowance....so now we need to look for a car.
So, is it better to buy in CH or Germany? Or, is it better to lease a car from the dealer in Germany or CH?

Anyone got recent experience of these options? All advise and help appreciated
Please note that it is unlikely you can lease/finance a car from a German dealer if you are resident in Switzerland and have no financial relationship with Germany (e.g. bank accounts, property, income etc...).

Furthermore, as a private person, it is unlikely to be worth the hassle to import a car from Germany, unless you are buying something more upmarket (>100k CHF).
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Old 12.06.2017, 17:41
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Re: Leasing versus buying in CH

Buy second hand with cash. New car is just a massive waste of money. Unless you have enough money to burn
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Old 12.06.2017, 18:40
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Re: Leasing versus buying in CH

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In my humble opinion, finance.

Because, with the Leasing, you will pay for a car that at the end you might not have, or you could end up paying more.

Also, whenever you want you can just sell it and pay the rest of the financement, and end for the ties with the bank (and sometimes get most of your cash back )

Another thing, you could invest certain amount of cash, lets say, in stocks that pay some dividends, and part of the car could be paid like this
You need to learn about the Swiss market more before you go giving advice. The cheapest loan available for consumer finance is at 5.9% (unless someone can link somewhere cheaper than Migros Bank). Oh and Migros have very tight lending criteria. Figure on actually getting a loan at 7.9-9.9%. "Leasing" in Switzerland is the equivalent of PCP elsewhere - normally, but not always pay deposit, agree mileage and time period, make monthly payments and have an optional ballon at the end to keep the car. The interest rate varies from 0 to maybe 5%. You can make it just like a loan by setting the balloon to near zero. You can also pay it off early. Downsides are if you hand it back it has to be immaculate or you will pay to repair and overage on the mileage is expensive. Additionally you have to have fully comprehensive insurance, but I'd always have it anyway. It's also easy to abuse and get yourself into trouble by making the deposit too low and being in negative equity. Rule of thumb is pay 20% deposit and you should never be in negative equity.
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Old 12.06.2017, 18:45
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Re: Leasing versus buying in CH

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You can make it just like a loan by setting the balloon to near zero.
That's what I did the one time I leased.

Four year lease, final payment was about the same or slighly less than the normal monthly.

Kept it another 14 years, and gave it away to a friend's son for parts a couple months ago (mine had much better brakes, wheels, alternator, washer mechanism, etc. than his)

Tom
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Old 12.06.2017, 18:50
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Re: Leasing versus buying in CH

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Buy second hand with cash. New car is just a massive waste of money. Unless you have enough money to burn
Agreed, unless you can get a really good deal (also with cash).

I got two new bikes for less than they would have normally cost used that way, and it helped that my daughter was doing her apprenticeship at the Ducati dealer!

Tom
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Old 12.06.2017, 19:07
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Re: Leasing versus buying in CH

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Depends on your usage of the car.
How many Kms per year do you do? And also how often do you want to change your car?
Those are the main factors that would make a leasing interesting or not.
Currently about 40k a year with regular trips to the UK as fuel costs are met by employer...generally we keep our cars for a long time.
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Old 12.06.2017, 19:08
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Re: Leasing versus buying in CH

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Agreed, unless you can get a really good deal (also with cash).

I got two new bikes for less than they would have normally cost used that way, and it helped that my daughter was doing her apprenticeship at the Ducati dealer!

Tom
Yep - got 33% off list for my A45 AMG. Was cheaper than buying used and has the exact spec we wanted. Leasing at 1.9%

Buying low depreciation cars like my Exige also makes sense. Difference between a new one and used was small enough to make a new one stack up.
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Old 12.06.2017, 19:19
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Re: Leasing versus buying in CH

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You can make it just like a loan by setting the balloon to near zero. You can also pay it off early. Downsides are if you hand it back it has to be immaculate or you will pay to repair and overage on the mileage is expensive. Additionally you have to have fully comprehensive insurance, but I'd always have it anyway.
This is what I did when I bought my mini. I leased to zero for 48 months. The interest rate was way better. it was 1.9 with BMW vs 5.9 or more for a private loan.

I always have full insurance which included full replacement. At least for the first 4 years.
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Old 12.06.2017, 19:39
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Re: Leasing versus buying in CH

Even the least depreciating cars shed like half of the value after 3-4 years. If you're buying for practical reasons, buy a ow mileage 5+ year old car from a brand with a reputation for reliability and drive it into the ground. Otherwise you're just
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Old 12.06.2017, 19:42
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Re: Leasing versus buying in CH

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Even the least depreciating cars shed like half of the value after 3-4 years. If you're buying for practical reasons, buy a reliable low mileage 5+ year old car and drive it into the ground. Otherwise you're just
Yeah, yeah. Blah, blah blah. We know.
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Old 12.06.2017, 20:52
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Re: Leasing versus buying in CH

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Yep - got 33% off list for my A45 AMG. Was cheaper than buying used and has the exact spec we wanted. Leasing at 1.9%

Buying low depreciation cars like my Exige also makes sense. Difference between a new one and used was small enough to make a new one stack up.
Similar scenario here. Got 36% off my X5 (Granted that was when the CHF/EURO situation happened) and recently got 23% off my M2. My BMW dealer currently has between 20-30% off all showroom stock, so its worth getting something new. I get the argument about depreciation and buying a 5 year old car, but sometimes it's nice to treat yourself to a new car.
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Old 12.06.2017, 20:54
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Re: Leasing versus buying in CH

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Furthermore, as a private person, it is unlikely to be worth the hassle to import a car from Germany, unless you are buying something more upmarket (>100k CHF).

I wouldn't say that. Or at least, not in all cases.
E.g.:
There's a far greater number of used E-class Mercedes T models available in Germany (often cars of employees of Mercedes Benz who get them with special conditions and resell them after 9 or 12 months).

"Swiss" cars usually have more options by default and are better spec'ed (engine-wise) and you get the "free" service - but there's much more choice in the German used car market.

Is it really such a hassle to import?
I thought you could just pay import-butler to do the paperwork for a couple of hundred and then go and drive the car down here yourself?
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Old 13.06.2017, 10:46
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Re: Leasing versus buying in CH

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Similar scenario here. Got 36% off my X5 (Granted that was when the CHF/EURO situation happened) and recently got 23% off my M2. My BMW dealer currently has between 20-30% off all showroom stock, so its worth getting something new. I get the argument about depreciation and buying a 5 year old car, but sometimes it's nice to treat yourself to a new car.
These "20-30% off" are usually fake. The MSRP is set high on the car launch, after some time the market adjusts and then you have those "promotions". There is no free lunch.
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Old 13.06.2017, 11:17
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Re: Leasing versus buying in CH

Buy a used vehicle.
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Old 13.06.2017, 14:18
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Re: Leasing versus buying in CH

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Even the least depreciating cars shed like half of the value after 3-4 years.
I'd be in the market for a Cayman GT 4 that's half the new price. Please find me one.
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Old 13.06.2017, 15:29
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Re: Leasing versus buying in CH

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I'd be in the market for a Cayman GT 4 that's half the new price. Please find me one.
Me too please! I looked at one with 12,000km on the clock that was CHF30K over list price! What about a GT3 RS? 911R?
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Old 13.06.2017, 15:56
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Re: Leasing versus buying in CH

It depends on the value of the car

- Leasing rates that I've seen are 3-4%
- Saving rates are zero

Cash is possibly better because the ROI for cash becomes 3-4%
This works more at the low end where depreciation is closer to end of lease value

Low end of course is a matter of opinion. Dacia anyone? Kia?
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