Car Loan, Leasing or Cash: Which Is the Cheapest Way to Pay?
How the three options compare in cost, flexibility and risk.
5 min read · Loans & Credit
Life situations: Taking a loan
The payment method can change the cost of a car by thousands.
Cash
No interest and full ownership, but it uses savings.
Example with default values. Open the calculator →
Loan
You own the car and pay interest. Rates are capped at 10 % for consumer credit.
Leasing
- Lower monthly payments.
- You do not own the car.
- Fees for excess kilometres and damage.
Total cost counts
Compare the total cost over the holding period, including interest, fees, insurance and the residual value. A low monthly payment can hide a higher total price.
Compare monthly payments with the leasing calculator.
Try it yourself: Car Leasing Calculator
Change any input and the result updates instantly. Nothing you enter is sent to a server.
Monthly lease paymentCHF 560
- Total lease payments
- CHF 24'177
- Residual value at end
- CHF 20'000
- Financing cost (interest)
- CHF 4'177