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Old 30.01.2020, 15:23
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Getting a loan for a used car

I have a few questions on getting a loan for a used car. My current car I paid cash for (a whopping CHF 7000. It is from 2001). It has been a great car that has needed repairs but overall it has worked well.

I am now thinking that I need a newer car, possibly used. But I am more keen on getting a more recent one - maybe from 2017 or 2018. I would need a loan to get it since it would cost more than I could buy outright.

So is one able to get loans from dealers for used cars? What about if I were to buy it from a private seller? If not from the dealer, who else offers loans for used cars? I know the interest rate might be higher but how much higher? Also, what is the average age of a used (or even new) car loan?

Also, is one able to lease a fairly recent used car or is it really better to get a new one if leasing?

I had not had a car for many years before I bought my current one, so I am a bit clueless.

Thanks so much.
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Old 30.01.2020, 15:33
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Re: Getting a loan for a used car

- Yes you can lease second-handed cars.
- Yes a lot of dealers offer loans and/or lease constructions.
- Getting a loan is no problem as long as you are financially healthy enough.
- You could also do this with a normal loan from a bank.
- Average age of a loan is useless unless you take an average amount and want average monthly payment
- What is best for you is easy to calculate once you informed yourself about the numbers.
- If you buy from a private seller you can put it under lease elsewhere, or use a loan from your bank.
- Wether new or used is better depends on the offer and what you are willing to pay, just remember that depreciation is huge in the first years.
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Old 30.01.2020, 15:53
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Re: Getting a loan for a used car

For such a recent model (2017 or 2018) a demo car from a dealer may be cheaper than any used car out there.

I think there are no "car loans" in Switzerland. There are personal loans that you can use for whatever you want. You may go to the casino or buy a car, but the car is not collateral for the loan. You get these loans from Migros Bank, Cembra, etc. To get the loan you need 3 things: (i) income proof which can be job contract, lohnausweis, (ii)bretreibungsamt/office de poursuite certificate of your existing debts, (iii) sign a form that you allow the bank to use your private data to investigate you.

some dealers are offering 0.9% leases on new cars, but sometimes a loan is better:

new car leasing advantages:
  • very low interest rate
  • for new cars you may get company discount (~10%), you need a letter from your company that says that the company has a work related travel policy that reimburses cost per km
  • 3-5 years warranty

loan for used auto advantages:
  • a leasing means you pay full casco car insurance.
  • if you buy a car from a private seller with a personal loan you can optimize your insurance to something that benefits you, not the car dealer

It's hard to make a conclusion without knowing the car model, its price, and your personal data for insurance purposes. Buying a car is a happy experiences, visit many dealers get prices and have fun with Excel
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Old 30.01.2020, 16:12
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Re: Getting a loan for a used car

There are car dealers which deal in what appear to be fleet lease returns/demo cars/unsold last years stock. They've taken a hit on depreciation and often there are minimal kilometers on them. I don't know how that works with warranty.
The one I took a look at was here https://www.nutzfahrzeuge.uster.amag.ch/de

As others have mentioned you can get a personal loan. I was looking for car loans a while back and eventually figured out there's no such thing here, or if there is I couldn't find it.
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Old 30.01.2020, 17:05
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Re: Getting a loan for a used car

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[*]for new cars you may get company discount (~10%), you need a letter from your company that says that the company has a work related travel policy that reimburses cost per km
Do you know how it works for people who have their own company? I work for myself but only in the category of "sole enterprise".

Very helpful answer. Thank you.
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Old 30.01.2020, 17:36
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Re: Getting a loan for a used car

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Do you know how it works for people who have their own company? I work for myself but only in the category of "sole enterprise".

Very helpful answer. Thank you.
No idea, I work in a 150+ people company. It's called firmenkundennachlass in German, literally corporate customer discount. Ask a dealer.

You're welcome.
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Old 30.01.2020, 17:46
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Re: Getting a loan for a used car

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Do you know how it works for people who have their own company? I work for myself but only in the category of "sole enterprise".

Very helpful answer. Thank you.
It works according to the principle of how more you buy, the more discount you can get. Since you only need one car this is not interesting for the lease firms. Still you can always negotiate when you buy a car, mentioning you have a firm just will not make a difference.
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