What's your efective interest for a loan?

Finance, Taxes, Banking, Insurance and Retirement
1
Hi,

I will move to Switzerland next month.

What's the effective interest of your bank for a loan?

I was looking for a car, and the interest of the manufacturer is 4,4% (they use Cembra Money Bank AG).

Should I find a better one directly at the bank?

Thank you.

2
Banks don't really offer consumer/unsecured loans in Switzerland. Migros Bank are an exception and are currently offering at 4.7-5.9%. Historically though they don't seem to want to lend to new arrivals. If you have a securities portfolio to pledge as collateral, you'd be looking at 2-3%, but generally need to borrow at least 100k.

If you are buying a car, typically the manufacturers finance is the best interest rate (for new cars), followed by finance providers like Cembra or Bank-Now for their leasing offers, followed by Migros, followed by Cembra/Bank-Now personal loans.

3
Thank you!

4
Leasing with option to buy is at 0.9% from several manufacturers.

Of course, there are some conditions: (i) it's for new cars where depreciation hits like sledge hammer , (ii) need to use the insurance coverage recommended by leasing institution, and (iii) it's the most complete insurance package, not the cheapest one.

5
I was looking for a Model 3, did not find at the website if it has option to buy. The interest of leasing was 3,03%.

And I don't know how long I will be stayed on Switzerland, 1~2~5 years, so I think leasing is not a good option.

6
Never heard of the requirement to use their insurers before. Sure about that one?

7
You could try flexible leasing, like with gowago or carvolution.

8

Tesla? Normal conditions don’t apply, hahaha. Other Tesla drivers at EF know more https://www.englishforum.ch/transpor…oy-thread.html But, yes there’s a but, use google translate to learn from experiences from drivers in Germany and CH https://tff-forum.de/t/reparatur-nur…dyshop/90604/3

Indeed, made a mistake. It’s not a condition. However, after considering the most complete insurance package required by the leasing terms, it’s cheaper (at least for me: age/citizenship) with the insurer they suggested compared to quotes I got from other insurers.

9
In that case, why not buy something you can actually afford with cash and not go into debt? Leases and loans don't magically disappear if you leave after a year. Heck, even dying doesn't get you out of leases or loans!

10
In fact, I would like to spend 25k on front and loan the rest.

Off course would be better to buy a used one but did not find an electric in this range of money, and I want to pay for the experience because in my country (Brazil), electric will not be a reality never in the next 100 years at least.

I think loan will be the beast because I can sell the car and solve the loan, if I lease for 60 months, I don't know what's happens if you need to close the contract before.