Buying a Family Car

Hello. Your article about auto leasing is very interesting. I would like to ask for some guidance on buying a good family car. Is this something that you can help me with?

Hi there,

There are many variables which can influence the cost of buying a car in Switzerland, but here are some basic tips to consider:

1. Buy instead of leasing. The total cost of leasing a vehicle is generally higher than the cost of buying a vehicle. If you cannot afford to pay for a car in cash, consider taking out a personal loan (you can compare Swiss personal loans here). If the car dealer offers in-house or third-party financing, make sure to compare the rates with those of personal loans and choose the cheapest option.

2. Negotiate. Many Swiss car dealers will offer discounts on listed prices upon request, rather than lose out on a sale.

3. Consider buying a directly imported car. Many car manufacturers and importers add a hefty markup to cars sold in Switzerland, due to the higher purchasing power of Swiss customers. Compare the Swiss prices of the cars you are interested in buying with the prices in neighboring countries. In many cases, the price charged abroad will be significantly lower than the price charged in Switzerland, making it cheaper to buy and import a car than to buy the same car in Switzerland. A number of smaller Swiss car dealers specialize in directly importing cars from Germany and other neighboring countries and they handle the import on your behalf. Buying a directly imported car through one of these dealers is straightforward and can drastically reduce the price you pay for a car.

4. Consider smaller engine sizes. Unless you expect to do a lot of driving in mountainous areas, you can save a significant amount of money over the long term by driving a car with a relatively small engine. Aside from lower fuel consumption, you also pay lower car insurance premiums as these are based on engine size.

5. Consider the cost of frills. Many cars are offered in a number of makes. Typically, a basic model with few frills is offered, superceded by one or more makes which include frills like on-board navigation systems, media players or climate controlled seats, among others. Car dealers often make tidy profits on these extras, and may try to convince you to buy the pimped models rather than the standard edition. Carefully consider whether you actually need or will use extras. You can typically save a significant amount of money by going with the basic model.

Check out these money saving tips for car owners in Switzerland for more information.

Best regards from Moneyguru

More on this topic:
Personal loan comparison
9 ways to save on car insurance in Switzerland
8 Ways to Save Money on Gas in Switzerland
Car leasing in Switzerland: 10 key tips
Car leasing calculator
Swiss car insurance comparison

What is the monthly cost of car maintenance in Switzerland?

Hi ethanscott278,

In Switzerland the widely-accepted guideline is to budget 500 Swiss francs per month towards costs associated with owning and using a car.

Costs include:

• Maintenance
• Road tax
• Highway tax
• Parking fees/rental
• Car insurance
• Fuel
• Servicing
• Repairs
• Tires
• Traffic fines
• Loss of value

Some of these costs (like traffic fines) are avoidable. The costs of fuel, tires, servicing and repair vary depending on how much you drive your car. Using a car with low fuel consumption obviously results in lower fuel costs. If you do not pay for your home and/or workplace parking, your parking costs will be lower. Road taxes vary depending on which canton your car is licensed in and the power of its engine.

The more expensive the car you buy, the greater the cost of loss of value will be (with the possible exception of collectible cars).

Note that the 500-franc budget estimate does not cover the costs of buying the car. If you get a personal loan to buy a car, you must account for interest costs as well. If you lease a car, you must account for car leasing costs.

For average-priced cars (including second-hand cars), budgeting 500 francs per month towards collective costs is highly recommended. If you end up with a surplus, you can always invest the money or use it towards you next car purchase.

Best regards from Moneyguru