Swiss prefer to buy their car in cash rather than leasing it
The vast majority of Swiss people pay cash for their cars.
There are some 4.8 million cars on the road in Switzerland. A figure twice as high as in the early 1980s. But do these cars belong to their owners, or were they leased or rented through a subscription? The TCS wanted to find out for sure and surveyed nearly 1,200 of its members. The verdict: 92% of those surveyed own their vehicle.
Most of them purchased vehicles in cash. Some 80% paid for their car in cash or by bank transfer. Only 10% opted for a leasing contract, while 10% took their car back at the end of the lease. It's worth noting that the Ticinese are the leasing champions (18%), ahead of the French-speaking part of Switzerland (13%) and the German-speaking part of Switzerland (8%).
"The vast majority of people who buy their car outright justify their decision by the financial means available and the fact that there are no advantages to external financing," emphasizes the TCS. Other reasons cited include avoiding debt and long-term ownership of the vehicle. Leasing conditions are also often a factor: 60% of those surveyed do not want to be tied to a loan for several years. Furthermore, more than half fear that leasing will cost them more in total than the actual value of the car.
As for those who opt for leasing, more than half say they prefer to use their money for something else. And 46% say they are motivated by the convenience of driving a modern car.
It should be noted that another survey, this time by Comparis, conducted in early 2024, showed that nearly 30% of Swiss people, particularly young people, had opted for leasing in 2022, a figure up from 2021.
As for car subscriptions or car-sharing offers, they remain niche solutions, according to TCS.
Leasing can be expensive, the TCS points out. In addition to the monthly payments, there are also mandatory comprehensive insurance, repair obligations, and trade-in costs to consider. That's why it recommends the general rule: leasing payment x 2 = monthly costs (and x 3 for used cars). But leasing also has its advantages, the TCS notes. This is particularly true for those with a regular income who want to drive a modern, well-equipped vehicle without committing to a long-term plan. It can also be a good idea for electric cars, as their residual values are difficult to predict, and this helps protect against a loss in resale value, it notes.
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