Loan vs. Leasing: Which Is Better?
Whether for a car, furniture, or other purchases – the question is often: loan or leasing? Both forms of financing have advantages and disadvantages. This comparison helps you make the right decision for your situation.
Contents
Loan: Advantages and disadvantages
Advantages: You become the owner of the item. No mileage limits or usage restrictions. Flexible: early repayment possible at any time (KKG). Often lower total costs than leasing. Disadvantages: Higher monthly payments than with leasing. You bear the depreciation risk. Credit assessment required.
Leasing: Advantages and disadvantages
Advantages: Lower monthly payments than with a loan. Always possible to have the latest model. No large one-time payment needed. Disadvantages: You do not become the owner. Mileage limits and usage conditions. Total costs often higher than with a loan. Early termination is expensive. Full coverage insurance required.
Comparison using a car as an example
For a new car worth CHF 30'000 over 48 months: With a loan, you pay approximately CHF 700 per month and own the car at the end. With leasing, you pay approximately CHF 450 per month but must return the car. The total cost with a loan is approximately CHF 33'600, with leasing approximately CHF 21'600 plus returning the car.
When is which option better?
A loan is better if you want to become the owner, plan to use the item for a long time, need flexible usage, or want to deduct the loan from your taxes. Leasing is suitable if low monthly payments are a priority, you regularly want the latest model, or short-term use is planned.
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