Buying, subscribing, leasing, renting or sharing a car: What suits you best?

Which form of car use is right for me?

The answer to this question depends on your personal situation. Can you afford a car? How often do you need it and for what purpose? Do you use the car alone or do you use your family members? How important is environmentally friendly mobility to you? Do you live in an urban or very rural area? What emotional significance does a car have for you?

It is worthwhile not automatically choosing the “Purchase” or “Leasing” option. After all, half of the people who own a car in Switzerland drive a maximum of 10,000 kilometres per year, one-fifth even less than 5,000 kilometres. If you consider that a car costs on average more than CHF 10,000 per year, there are significantly smarter and cheaper forms for occasional car use…

Who does buying a car make sense for?

The following points can speak in favour of buying a car:

• You often need a vehicle in the long term, for years to come.

• You drive a lot of kilometres every year, not just a four-digit number.

• It’s important to you that the car is your property.

• The vehicle equipment should be exactly what you want it to be.

• You’re willing to tie up a lot of capital in one car.

Instant purchases are still clearly preferred in Switzerland over loan purchases, leasing and car subscriptions. If people had to buy a new car tomorrow, According to the industry association auto-schweiz, 62% would opt for it.

Benefits of buying a car

• A purchased car is your property. You are free to choose the equipment and model of a new car.

• Even after purchase, you can design and use your car the way you want it.

• Buying a car makes you very flexible and independent. This is especially true if the alternative mobility options do not suit your needs.

Disadvantages of buying a car

• You invest a lot of money in a product that loses immensely in value immediately after purchase. In the first year, this can be 25% of the purchase price; after three years, it’s a whopping 50%. In view of this rapid decline in value, it makes no economic sense to drive a car for just a few years.

• The running costs of maintaining a car are significant and are often ignored when buying it. The TCS provides a detailed overview of the operating costs incurred by car owners each year. The TCS calculates and comes up with an average of over CHF 11,000 per year.

• Owning a car is rarely used throughout the year. On average, it is 23 out of 24 hours on a day.

• You have to take care of workshop appointments, tyre changes, insurance and the like.

• You need a car park, which may cost a lot more.
   

Who does car leasing make sense for?

The following points can speak in favour of car leasing:

• You drive regularly, but not excessively. Not much more than 10,000 kilometres a year.

• You want to drive a (relatively) new car.

• You prefer fixed monthly costs for your car.

With car leasing, you pay a monthly rate for the use of a vehicle. In addition, you will make a down payment / partial payment upon conclusion of the contract. You then use the vehicle for a certain period of time, typically three to four years. The costs you incur depend on factors such as the down payment / partial payment, the value of the vehicle, the kilometres driven and the duration of the contract. Whether it is worth taking ownership of the vehicle at the end of the contract period depends on the individual case. By the way, leased cars are always fully covered.

Do people have the choice between buying cash, buying a loan, leasing or car subscription According to the industry association auto-schweiz, 14% opt for leasing.

Benefits of car leasing

• You have significantly less capital commitment than when you buy a car.

• By regularly changing leased vehicles, you can always drive new models.

• In the case of new technologies such as electric cars, you can use a lease to bridge the time until technological development has progressed further.

Disadvantages of car leasing

• Leasing is more expensive than buying it in cash. Therefore, leasing makes little economic sense if you want to drive the vehicle for many years.

• Depending on the agreement, there may be substantial additional payments on return. One reason may be that you drove more kilometres than agreed. Another reason may be damage, such as to the paintwork, which you have to pay for to repair.

• If you want to withdraw from the agreement earlier, this can be expensive. This is because the monthly interest rate then increases retroactively due to the shorter term of the contract. You have to pay for that.

• You need a car park.

Who does a car subscription make sense for?

The following points may speak in favour of a car subscription:

• You like to drive different cars.

• You like driving up-to-date models.

• You need a car for a foreseeable period of time, typically more than a few weeks, but no longer than a few years.

• Your annual mileage is manageable.

• You don’t want to have to worry about appointments for repairs, tyre changes or the like.

• You like clearly foreseeable fixed costs (flat rates)

A car subscription is a flexible way of renting a car. You pay a monthly fee that covers everything from taxes to tyres and maintenance to insurance. The car subscription takes up the idea of the Internet flat rate. During your subscription, you can swap your vehicle for a different model or even not have a car for some time. How often this is possible depends on the individual case. There are car subscriptions in Switzerland for new and used cars.

Do people have the choice between buying cash, buying a loan, leasing or car subscription According to the industry association auto-schweiz, seven percent opt for a subscription.

Benefits of the car subscription

• You have significantly less capital commitment than when you buy a car.

• You can reliably plan your monthly costs for your car.

• All you have to do is refuel your car or Take care of charging yourself.

• You can change a subscribed car faster than a leased or purchased one: For example, you can drive a different car in winter than in summer.

• You can do everything online with your subscription.

Disadvantages of the car subscription

• The car is not your property.

• You only have a limited choice of model and equipment.

• The number of kilometres is contractually limited.

• A car subscription is often more expensive than a car lease because the terms are shorter than when leased. 

• If a subscription runs for as long as the average holding period of a car in Switzerland is, a purchase is the more economical alternative.

• You need a car park.

Who does car sharing make sense for?

The following points speak in favour of car sharing:

• You only need a car occasionally.

• You usually travel short distances.

• You want to get around by car as sustainably as possible.

• You often use public transport, but you need a car for the “last mile”.

With car sharing, you can use a car by the hour or by the day. If you don’t use it, someone else is driving the sharing car. With Mobility, you take out a subscription. Everything else then runs via an app: You book the desired vehicle category and period near your station. Go to the booked vehicle and unlock it without a key. After use, return the vehicle to the agreed station. You only need to refuel if the display is less than one third. For electric cars, plug in the charging cable. With 3’000 vehicles at over 1’500 stations, Mobility covers the whole of Switzerland, including smaller towns.

The range of car sharing vehicles and users on offer has once again grown strongly in recent years. More than 450’000 people already rely on this most environmentally friendly of all car usage models, around 300’000 of them with industry pioneer Mobility. Incidentally, Mobility also offers you the option of setting up your own Mobility station via sponsorship to build up. This can be of interest to companies, municipalities, larger city districts and even private car pools.

Benefits of car sharing

• Car sharing is the most sustainable way of driving a car. According to Energie Schweiz, one car-sharing car replaces eleven private cars.

• It is the most flexible of all car usage options: You can choose exactly the right model for every journey, from vans and family cars to convertibles for a ride.

• You can use a car without having to worry about the vehicle. At most, refuelling or charging at the charging station is the order of the day.

• You only pay for the use of the vehicle – and, depending on the agreement, a monthly fee may apply. All other costs are already included.

• You only pay for the kilometres actually driven.

• Car sharing is cheaper than a car subscription.

• You can combine the different modes of transport in a smart way: the long journey by train, the short journey by car 

• You can also use a car economically for just one or two hours.

• You can easily test new technologies, such as electric vehicles.

• You don’t need a private car park or obstruct valuable public spaces with your private car.

Disadvantages of car sharing

• You don’t have a “personal” car: After every journey, you have to clear out everything that belongs to you.

• Your dream car may not always be available.

• You may have some way to get to your car’s station. This can be a hurdle in bad weather, with several children or with luggage.

• During peak times, such as Christmas holidays, you should book your car in good time.

• Car sharing may not (yet) be possible at your station.