to get the loan do they ask for proof of income and all that? Or is the car somewhat securing the loan if you pay let's say 30% of it... thanks.
You bet. It's
the law . Unless you want borrow less than 500 Fr or more than 80k...
Only if parked all the time in secure parking at the bank/dealer maybe, otherwise it's not much of a security for your loan
At best, it would secure 20% of the loan.
Normally people pay cash for used cars here.
Tom
is the car like a security for the loan if you pay 30% of the car?
The car on its own is not enough to get the loan, you need enough income to justify towards the bank them giving such a loan towards you.
If you do not pay they might take the car, but they might also take part of your income or your furniture whatever brings them money and fits within legal rules.
I agree with those that actually wanted to give OP a bit of advise that a car in Switzerland isn't really needed for most places (since we do have a fully developed public transport system) and outright silly if you're working in downtown Zürich (and not living in TOTAL countryside.. and even then, P+R is the way to go)
Otherwise, probably buying a relatively cheap second-hand (but good condition) middle class car by cash like a Skoda is a good idea. Brand-new cars are expensive, and leasing a car will fix OP financially to Switzerland for quite some time - maybe NOT what he wants to do.. and then he appears to be US-American, which makes things rather more complicated..
You can strip it for parts, sell for cash with profit, drive to abroad and disappear etc, the next day after you've got the money and the car. Where and how do you think the bank would then get the remaining 70%? So, no it's not a security
His point is that you pay for it somewhere in the transaction, not that 0% “deals” aren’t offered. Typically the price of the car is too high to begin with.
It would be in the US, BTDT.
Tom
I'd still say that leasing is a better option, especially if you want something newer and more flexible. We managed to get a car leased after about 6 months being here on B-permit, but I guess that you could get one as soon as you get your permit.
Required documents were actually only:
- copy of permit,
- latest payment slip.
They told me that they do check one's eligibility (or credit score), but didn't require anything else.
Average downpayment on leasing ranges from 15 to 25% of the car's value, but you also have to have the insurance (they won't be able to register the car otherwise), usually costing around 1-2k CHF/year if you don't get a Ferrari. In addition you'll also need to pay a yearly car tax depending on your "eco-friendliness".
Still, parking in Zurich is both expensive and pain in the ass. You usually also have to pay extra for the parking space in/next to your apartment. That being said - if you live and work close to the train station taking a train (which are very nice here in Switzerland, by the way) might be a better option. Still, personally I prefer to live a little further from the centre and get a nice car for the difference in apartments' prices.
Or CHF 300/year if you have a good record and don't get anything beyond the legally required stuff.
Second car is virtually free.
Tom
True. I was talking about quite comprehensive insurance, including assistance and stuff. Thanks!
My daughter's first car cost her 1600, and insurance was 500 or so, as she had a good record despite never having had a license before (just learners permits for small motorcycles, she never got around to taking the test until after she got the car license, and then when straight for the big-bore license).
Tom
I'm pretty sure that these insurance prices are more relevant for Swiss nationals, and less for people on permits.
It will also depend greatly on the car. The cheapest car I have insured, is the least powerful at 240bhp, and that is around the 800 mark with a clean-ish record. Even if I maxed out the bonuses, wouldn't be much cheaper.
I never saw a price difference, Swiss or not.
Tom
what do you need to qualify for a loan? Can you put down 30% and that's enough? thanks.
No, you will need to show proof of income, etc.
Tom
how long you think to get the loan?
Depending on your exact situation and what papers you can show immediately somewhere in between 1 minute and 1 month.