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What should I watch out for when finding a car lease online? How can I tell if a lease provider is reputable or not and avoid pitfalls?
There are a number of things to look out for when looking for leases online:
1. Are you dealing with a lease provider, a broker or an affiliate?
The web is full of dealers which are all trying to get a piece of the action. Many websites offering car leases are not run by actual leasing services, but by brokers who sell leases from one or more lease providers. In many cases brokers charge a markup, so you pay more than if you were to get the lease directly from the lease provider.
Some websites are not run by either lease providers or brokers, but by affiliates. These are simply website operators who earn commissions by directing you to brokers or lease providers. Recommendations from these websites normally are not trustworthy because they are only interested in earning their commission. Some of these websites even include links to fraudulent operators.
2. Are service providers based in Switzerland?
Is the lease service even based in Switzerland? If it isn't, it may not be accepted by Swiss card dealers. What is more, you will not benefit from the protection of Swiss consumer protection laws.
Always check the location of a financial services provider before using their services. Reputable brokers will clearly state their location on their contact or imprint page. If a puported leasing service provider is not based in Switzerland but is marketing services to Swiss web users, treat it with suspicion.
3. Does the car dealer accept online leases?
Car dealers often partner exclusively with one or more lease providers, and may not be keen on leasing vehicles through a non-partner.
4. Do they want upfront payment?
Do lease providers request payment up front or require that you share your sensitive bank or credit card information with them online? If so, you may be dealing with a fraudulent broker or lease provider.
Never provide prepayment for a lease or loan, especially online. Genuine lease providers will only bill you monthly after your contract has taken effect and you have taken possession of the leased car.
5. Is a lease the best choice?
Regardless of how you go about getting a lease, you should understand that leasing a car is not always a smart financial move. A leased car does not belong to you, so you cannot keep it or resell it at the end of the lease term. Lease providers often make you take out expensive fully comprehensive car insurance for the lease vehicle. You may also be required to service the car at specific garages, which often are not the most affordable. You can find out more about this in our guide to the costs of car leasing.
The car leasing calculator on moneyland.ch makes it easy to find out exactly what a car lease will cost you.
Paying for a car in cash is always the cheapest option. Getting a personal loan to cover the cost of a car is another option, and can work out cheaper than leasing.
Best regards from Moneyguru
More information:
Car leasing: Is it worth it for you?
Car leasing calculator
Personal loan comparison
