Should I buy my car by leasing or loan?

Leasing: The most important facts at a glance

With leasing, you pay a monthly instalment to use the car for a certain period of time and mileage. The vehicle remains the property of the leasing company. At the end of the contract, you have three options:

1. Return of the car to the leasing company.
2. Purchase of the vehicle at residual value.
3. Extension of the leasing contract under new conditions.

Advantages of leasing

• Flexibility: You can choose between different terms (12, 24, 36, 48 or 60 months).
• Current models: When the contract expires, simply switch to a new model.
• Few repairs: With new car leasing, there are usually no major repairs.
• No risk of loss of value: The surrender value is fixed, regardless of performance.

Disadvantages of leasing

• Impaired credit rating: Leasing can affect your credit rating.
• Returning the vehicle: At the end of the term, you return the car or buy it at its residual value.
• Damage settlement: Damage is settled on return, you only pay the excess.
• Cancellation costs: Early contract cancellation is possible, but costs money.

Credit financing: the basics

When you buy a car with a loan, you immediately become the owner of the vehicle. You take out a loan from a bank and pay it back, including interest, in monthly instalments. Interest rates for car loans are currently between 3.5% and 9.95%, depending on your credit rating.

Advantages of the loan

• Property: The vehicle belongs to you immediately.
• Flexible terms: Between 12 and 60 months or more.
• Early repayment: You can repay the loan more quickly and shorten the term.
• Free choice of workshop: You decide where you have the service or repairs carried out.

Disadvantages of the loan

• Impaired creditworthiness: A car loan can also affect your credit rating.
• Higher interest rates: Loan interest rates are generally higher than leasing interest rates.
• Repair costs: Expensive repairs are likely after a few years.
• Loss of value: The vehicle belongs to you and you bear the risk of loss of value.

Cost comparison: leasing vs. credit

To make your decision easier, we have compared the estimated costs of leasing and credit. Both options were calculated with an interest rate of 3.9%. Here are the results: