Lifestyle
Leasing vs Buying a Car
A leasing instalment looks small next to a purchase price, but the two are not comparable until you count depreciation, financing, insurance and kilometre limits. This calculator puts both on the same footing over the period you actually intend to drive the car.
Estimated difference over 6 years
CHF 5'623
Buying looks cheaper by about CHF 5'623 over 6 years. Leasing totals about CHF 50'440, buying about CHF 44'817.
Total leasing cost
CHF 50'440
CHF 701 per month, all-in
Total buying cost
CHF 44'817
CHF 622 per month, all-in
Estimated resale value
CHF 16'183
Your car's worth after 6 years if you buy
Value lost when buying
CHF 23'817
Depreciation — usually the largest real cost of a car
Financing & opportunity cost
CHF 7'200
At 3% per year
Excess kilometre charges
CHF 0
0 km over the limit per year
Total cost side by side
Everything you pay over 6 years, with the resale value credited back on the buying side.
How the cost builds up
Cumulative cost year by year. Buying often starts steeper because of early depreciation, then flattens.
Cost breakdown
Totals over 6 years for each option.
| Cost | Leasing | Buying |
|---|---|---|
Depreciation / leasing instalments Leasing instalments mostly pay for the value the car loses. | CHF 34'240 | CHF 23'817 |
Financing and opportunity cost Interest on a car loan plus the return you give up on the cash you use. | CHF 0 | CHF 7'200 |
Insurance Leasing contracts normally require full casco insurance. | CHF 9'000 | CHF 6'600 |
Maintenance, service, tyres | CHF 7'200 | CHF 7'200 |
Excess kilometre charges Charged when you drive more than the contract allows. | CHF 0 | CHF 0 |
| Total | CHF 50'440 | CHF 44'817 |
What these numbers mean
A leasing instalment is mostly rent for the value the car loses while you drive it, plus the financing cost built into the contract. That is why leasing rarely beats buying on pure cost: you pay for depreciation either way, but when you buy, whatever value is left at the end is still yours — here about CHF 16'183.
Time is the deciding factor. Over the leasing term the two options are usually close. Beyond it, buying pulls ahead, because an owned car keeps running while leasing restarts the cycle with a new contract.
Kilometre limits and return conditions are where leasing costs surprise people. At 15'000 km per year against 15'000 km included, the excess charges alone add CHF 0 in this scenario — before any damage assessment when the car goes back.
Leasing still has non-financial advantages: predictable monthly costs, a car under warranty, no resale hassle and no large sum tied up at once. This tool prices the trade-off; whether that convenience is worth it is your call.
Assumptions used
- Buying is measured as the value the car loses (depreciation) plus financing and running costs — the resale value is credited back to you, because you still own the car.
- Depreciation is applied as a constant annual percentage of the remaining value. Real cars lose the most in the first two years.
- Financing cost when buying combines interest on the financed part (approximated on a linearly amortised loan) and the return you give up on the cash you pay in.
- Leasing instalments are assumed fixed for the whole contract; the contractual residual value is shown for reference but is not paid, since a lease is normally returned.
- If you plan to keep a car longer than the leasing contract, the extra years are assumed to cost the same monthly instalment for a comparable car.
- Leasing contracts normally require full casco insurance, which is modelled as an annual surcharge on top of your usual premium.
- Excess kilometre charges apply only during the leasing contract, at the rate you enter.
- Not modelled: cantonal vehicle tax, fuel or electricity, tyre storage, parking, motorway vignette, return-condition damage charges, and any VAT or tax deduction for business use. These are similar for both options in most cases.
These are approximate estimates for comparison only — not financial advice or a financing offer. Depreciation, resale values, leasing terms and insurance premiums vary widely by model, mileage and provider. Always read the leasing contract, especially the kilometre limits and return conditions. Your inputs stay in your browser.
Frequently asked questions
Short answers to the questions that come up most often with this calculator.
- Is leasing or buying a car cheaper in Switzerland?
- Over a longer ownership period, buying is usually cheaper because you keep the residual value of the car. Leasing tends to be more attractive if you change cars frequently or want predictable monthly payments.
- What costs does the comparison include?
- Lease payments, down payment, financing interest, depreciation to the estimated resale value, insurance, maintenance and the opportunity cost of the capital you tie up when buying.
- What is opportunity cost here?
- Money used for a down payment or an outright purchase could have been invested instead. The calculator estimates the return you give up so the two options are compared on equal footing.
- Are running costs like fuel included?
- Fuel or electricity, tyres, tolls and parking are broadly similar in both options, so they are excluded to keep the comparison focused on the cost of the financing decision itself.