Car purchase cash or credit – Car Loans


Credit and vehicle come “from a single source”. The best conditions apply to special models or less common vehicles that may later have a poorer resale value. A common and popular method of buying a new car is through loan financing. As a rule, the potential borrower has the choice between two different types of loan: on the one hand the classic installment loan and on the other hand balloon financing. By taking out a loan, it is possible to immediately pay for the dream car in cash at the dealer.

Buy a car – make a secure payment

Buy a car - make a secure payment

In practice, when you buy a car, there is a significant exchange of money. For most private individuals, buying a car – be it a new car or a used car – is not a recurring process. For one thing, in practice it is not advisable to take large quantities with you – you should rule out the risk of theft or robbery or even loss.

On the other hand, a cash payment is usually irrevocably lost if, despite all reluctance, it turns out that you have been the victim of fraud. A burglar cannot do anything about this because the money cannot be paid out to him. You also have the option to have the check blocked within a certain period of time in the event of discrepancies or defects after payment has been made.

The same applies if you make the payment for the car purchase by bank transfer to your current bank account. Payment by card is also possible if your bank guarantees the required amount of money. In the case of a non-cash payment, you should of course make sure in advance that your account covers the value on the value date in order not to have any disadvantages for the provider and for yourself.

If for any reason a cash payment cannot be prevented, it is best to carry the purchase amount in an empty, sealed envelope directly on your own body, for example in the inside pocket of the vest. Let yourself be accompanied by a confidant and, if possible, not inform anyone (other than your close confidante) about the proposed money transfer.

In any case, you should confirm receipt of the cash or check immediately from the payee and confirm in advance! If you make a bank transfer or credit card payment, you will have proof of the transfer.

Dependent on cash payment when buying a new car

Dependent on cash payment when buying a new car

The German-speaking Swiss are dependent on cash payment when buying a new car. By contrast, leasing is preferred in western Switzerland. Cash, leasing business or credit: If you buy a new car, you have several options for financing in Switzerland. According to a study by Autoscout24.ch, however, there are regionally different â – a certain number of Röstigraben when buying a car. If you have bought a new car or would like to buy one:

In German-speaking Switzerland, car buyers pay their new car for private use at the most preferred bar; 60% of the German Swiss interviewed state this funding option as a preferred form. “The cash payment covers all payment transactions that take place immediately and in a certain number, including e-banking or instant transfers,” explains Cornelia Magnin, communications officer at Autoscout24.

Paying out in cash is only a problem for 40 percent in Switzerland. Almost half (48 percent) of the Romans prefer to rent. This was only one option for 30 percentage points of German-speaking Switzerland. When it comes to loans for a car, the Röstigraben is significantly smaller: for 10 or 12 percent of Germans, an auto purchase option is by credit.

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