What documents do I need for a car loan?

A valid ID (identity card or passport) and the last 3 payslips. For used cars, additionally the vehicle registration document or the purchase offer. Self-employed individuals additionally submit the last 2 tax returns. All documents are uploaded digitally.

Can I repay the car loan early?

Yes, at any time. You pay the interest up to the repayment date, that's it. No penalty fee, no early repayment compensation: Art. 17 CCA governs this. If you sell the car, you can pay off the loan immediately.

How much of a car loan can I take out at most?

That depends on your income and your existing obligations. Under the CCA, the loan must be repayable within 36 months, based on your available income. Through privatkredit.ch we arrange loans from CHF 5'000 to CHF 300'000; the loan calculator shows your individual range non-bindingly.

What is the difference between a new-car and a used-car loan?

None. Whether new or used, it plays no role for the interest rate. What matters is your income, your creditworthiness and the chosen term. For used cars, we recommend an inspection by TCS or AGVS and documenting the vehicle value in the purchase contract.

Do I have to deposit the vehicle registration document with the bank?

No. Unlike with leasing, the vehicle remains your property with a loan, the vehicle registration document is not deposited. You can sell the car at any time, provided the remaining loan is settled.

Vehicle Financing

Car Loan Switzerland: You Found the Car, Now the Financing

Loan or Leasing

Car Loan Switzerland or Leasing: What Fits You?

Car loan or leasing: the differences are bigger than just the installment. With a car loan you are the owner immediately. That means the car is yours: no return date, no excess mileage costs, no wear-and-tear fees. You can sell your vehicle, modify it, or simply keep driving it after the loan term.

The tangible advantage: car dealers treat cash-paying customers differently. There is often a discount on the list price included, which partially or fully covers your financing costs. With leasing you don't have this negotiating power.

Even more important is the flexibility. Under Art. 17 CCA you can pay off your car loan at any time, without a penalty fee. With leasing, early termination often costs thousands of francs. It gives you the freedom that real owners have.

Why Finance Through privatkredit.ch

One Application, Several Banks: The Benefit of a Broker

One application, several providers: you submit your request once, we obtain offers from several Swiss banks for you at the same time, instead of you canvassing bank after bank yourself.

Anyone who applies to each bank individually leaves traces and often burdens their own creditworthiness, without ever learning why an application was rejected. We take over the pre-selection of suitable providers for your profile.

Owner from day one: unlike with leasing, the car belongs to you immediately, with full freedom of disposal.

Possible cash-payer discount at the dealer: you pay in cash and negotiate from a stronger position.

Transparency before signing: you see the effective annual interest rate, the installment and the total costs of every offer before you decide.

Requirements

Requirements for a Car Loan

The requirements are manageable. You must:

Be between 18 and 67 years old; the loan should be repaid before your 70th birthday.

Have residence in Switzerland or a valid residence permit. Cross-border commuters with a Swiss employer also qualify.

Prove a regular income that covers your monthly installment and living costs. The bank assesses your creditworthiness based on a repayment period of 36 months, regardless of the actual term chosen.

Have no open debt collection proceedings. This is not automatically a disqualifying factor, read how a loan works despite debt collection entries.

Have a clean or at least not heavily burdened ZEK entry. A negative ZEK entry makes it harder, but not impossible.

How It Works

How to Apply for Your Car Loan

Schritt 1

Calculate installment

Use the loan calculator: enter the vehicle price and desired term, see the installment. Try different scenarios, for example CHF 25'000 over 48 months or CHF 35'000 over 60 months. What fits your budget?

Schritt 2

Submit application

The online form takes about 2 minutes: income, living situation, vehicle details, that's all. Your request goes to several providers at the same time.

Schritt 3

Compare and finalize

Within 24 hours you receive several non-binding offers. Compare effective annual interest rate, installment and total costs, choose the suitable offer and sign. After the 14-day withdrawal period under Art. 16 CCA, the money reaches your account within a few business days.

Comparison

Car Loan vs. Leasing: The Comparison

The choice between a car loan and leasing depends on your personal situation. The following table shows the key differences between a vehicle loan and a leasing contract in Switzerland.

Criterion	Car Loan	Leasing
Ownership of the vehicle	You, from day one	Leasing company
Cash-payer discount at the dealer	Possible	No
Mileage freedom	Unlimited	Limited (excess mileage costs)
Vehicle modifications	Freely allowed	Restricted or prohibited
Early termination	Possible at any time (Art. 17 CCA)	High costs possible
Right of withdrawal	14 days (Art. 16 CCA)	No statutory right of withdrawal
Residual value risk	None, car belongs to you	Residual value set by the lessor
ZEK entry	Yes	Yes
Total costs (typical)	Loan amount plus interest	Monthly installments plus down payment plus residual value
At the end of the term	Vehicle belongs to you	Return or buy the vehicle

A car loan is especially suitable for people who want to keep their vehicle long-term: by paying cash you make use of a possible dealer discount and have full freedom of disposal over your car. Leasing can be worthwhile if you want to drive a new vehicle regularly and prefer plannable monthly costs.

Important to Know

What You Should Watch Out for With a Car Loan

14-day right of withdrawal

After signing the loan agreement you have a 14-day right of withdrawal under Art. 16 CCA. Only after that does payout happen, usually within a few business days.

Early repayment without penalty fee

Under Art. 17 CCA you can repay your loan early at any time. You then only pay the interest up to the repayment date, an early repayment penalty may not be charged.

The effective annual interest rate counts, not the nominal rate

The nominal rate does not include fees and is therefore not a reliable comparison figure. Watch for the effective annual interest rate in every offer.

Frequently Asked Questions

Frequently Asked Questions About Car Loans

After signing the contract, the statutory 14-day withdrawal period runs (Art. 16 CCA). After that, payout happens within a few business days to your account.

Laufend aktualisierter Beitrag

Transparenz nach den publizistischen Leitlinien von privatkredit.ch

Stand: July 2026

Autor: privatkredit.ch Editorial Team, Specialist Editorial Team for Loans & Financing
Fachliche Prüfung: Redaktionsinterne Gegenprüfung durch Kreditfachleute
Zuletzt aktualisiert: July 7, 2026, Inhalte werden laufend aktualisiert
Unabhängigkeit: Unabhängige Recherche, ausschliesslich offizielle Schweizer Quellen

Quellen und Referenzen

1Fedlex, Federal Act on Consumer Credit (CCA/KKG). fedlex.admin.ch/eli/cc/2002/593/de
2ZEK, Central Office for Credit Information. zek.ch

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