Cars Made Easy


Car Leasing vs. Car Subscription: Exploring the Advantages and Disadvantages


Leasing in Switzerland: how does it work?

Leasing, in general, refers to an arrangement where an individual or business rents a vehicle from a dealer or leasing company for a predetermined period, typically ranging from two to five years. During this time, the lessee pays a monthly fee covering the use of the vehicle. This fee typically includes the costs associated with the vehicle itself, such as depreciation, financing charges, and taxes. However, additional expenses like insurance, maintenance, and registration fees may not be included and are the responsibility of the lessee.

done Advantages

✓ Ownership option ✓ Vehicle customisation ✓ No resale or residual value risk

close Disadvantages

- Uncertain total car costs - Responsibility for car maintenance - Possibly high down payment

What are the advantages of a car subscription over leasing?

diversity_2 Flexibility

Car subscriptions often offer more flexibility in terms of vehicle choice and duration compared to leasing, allowing subscribers to switch between different models more frequently.

receipt_long Transparent costs

Subscription services typically include all expenses such as insurance, maintenance, and roadside assistance in one monthly fee, simplifying budgeting and eliminating the need for separate payments.

timer No Long-Term Commitment

Subscriptions usually offer shorter commitment periods, allowing subscribers to cancel or change their subscription with less hassle compared to traditional leasing contracts.

sentiment_excited Convenience

Subscribers can often manage their subscription entirely online, including scheduling vehicle deliveries and pickups, making the process more convenient and accessible.

subtitles_off No upfront payment (in most cases)

Most of the car subscriptions typically have lower or no upfront costs compared to purchasing a vehicle outright, making them more accessible to individuals who may not want to make a significant initial investment.

savings No Depreciation Concerns

Since subscribers do not technically own the vehicle, they do not need to worry about depreciation or resale value, as they can simply return the car at the end of the subscription period.

Drive your car in an all-inclusive subscription

Why choose CARIFY over leasing?

CARIFY car subscriptions are the flexible all-inclusive alternative to leasing: a single monthly fee covers all the costs associated with your dream car, including repairs, maintenance, tires, motor vehicle tax and registration in your canton of residence. Comprehensive insurance is of course also included in the subscription price. You only have to pay for your fuel. And the best thing about it: you can switch to different models every month. A convertible in summer and an SUV in winter? CARIFY makes it possible! 

Compared to leasing, CARIFY car subscriptions offer the following benefits:

More Flexible Terms
A car subscription allows you to use vehicles for a flexible period without committing long-term. With CARIFY, we offer subscription terms ranging from 1 month to up to 48 months. In contrast, leasing contracts are often associated with longer terms spanning multiple years.

All-Inclusive Package
Unlike leasing, CARIFY's car subscription includes all costs associated with your desired vehicle in one monthly fee. This covers usage, repairs, maintenance, tires, motor vehicle tax, and registration in your canton of residence. Our PREMIUM insuranceprovides comprehensive coverage with no deductible and unlimited parking damage protection. With us, you only pay for fuel. Leasing requires you to handle taxes, insurance, and maintenance separately, leading to potential budget concerns. At CARIFY, everything is included in a single fixed monthly price, giving you peace of mind and full cost control.

We take care of everything to do with your car. You don't have to talk to a garage, insurance companies or the tax office! If you wish, we can deliver your dream car to your home and pick it up for servicing, tire changes or repairs and bring it back to you.

No Mandatory Down Payment
Unlike leasing, our car subscriptions do not require a mandatory down payment. 

Monthly Termination Options
Your CARIFY car subscription can be terminated monthly. In leasing contracts, the notice period is usually several months. This allows you to more easily switch between different vehicle models based on your changing needs.

While most leasing providers rely on brand-new cars produced exclusively for their customers, we work closely with over 500 garages in Switzerland that make their existing vehicles available for our service. In this way, we give existing high-quality vehicles a second chance and at the same time reduce the need to produce new vehicles. In addition, we also offer new cars to provide a wide range of mobility solutions. Furthermore, we provide a wide range of electric vehicles, ensuring ample choices for environmentally friendly transportation.

Electric Vehicles
Thanks to our adaptable minimum terms and straightforward booking process, CARIFY car subscriptions provide a seamless entry point into the world of electric vehicles. If you're interested in electromobility but aren't quite certain if it aligns with your lifestyle, you have the opportunity to experience driving an electric vehicle for a specified duration without any big commitment or carrying the risk of depreciation. Should you enjoy your experience with your electric vehicle, you can opt to purchase the car from us or continue enjoying its benefits through our comprehensive, all-inclusive subscriptions.

Overall, car subscriptions offer a flexible and convenient way to use a vehicle without committing long-term or worrying about additional services, financial outlays, so that you can focus only on driving pleasure!


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Frequently Asked Questions on Leasing in Switzerland

What is car leasing? chevron_right

Car leasing is a way to use a car or a motorbike for a set time, usually 3 to 4 years, without purchasing it. You make regular payments to the lessor, which is typically a car dealer or leasing company, for using the vehicle during the chosen minimum term.

During the lease, you pay a monthly rate covering the car's cost and the financing (interest rate). When you opt for leasing, you always pay more than just the pure depreciation of the vehicle. The additional costs exist because down payments and leasing installments must not only compensate for the depreciation of a leased object but also generate profit for the lessor and cover additional expenses such as capital provision interest, administrative costs, and the risk that the lessor may not be able to resell car at the full residual value at the end of the leasing period. The additional costs are indicated by the interest and are usually between 1% and 8%. You can use this interest rate to compare different leasing and financing offers. 

Additionally, mandatory costs like comprehensive insurance, taxes, license plates, and specific tires aren't included in this rate and need separate payment.

Leasing has two main advantages:

1. Simplicity
When buying a new car, selling the old one involves effort and negotiation. Leasing eliminates this hassle, as you can simply return the car to the dealer, saving time and negotiation stress. Furthermore, after the leasing period of usually a couple of years, you can easily switch to a newer or different model. 

2. Cost-effectiveness 
Leasing can be cheaper than buying, particularly if you only need the car for a few years. Initial costs are lower, and you don't bear the risk of the car's residual value or resale, as you return it to the leasing company after the minimum term. 

How does leasing a car work? chevron_right

Here's how car leasing typically works:

  1. Initial Payment
    The lessee usually makes an initial payment, also called down payment, at the beginning of the lease term. This payment may include a down payment, security deposit, and any fees required by the lessor.

  2. Monthly Payments
    During the lease term, the lessee makes regular monthly payments to the lessor. These payments cover the depreciation of the vehicle's value over the lease period, as well as any financing charges and administrative fees.

  3. Mileage Limit

    Lease agreements come with a mileage limit, which specifies the maximum number of kilometers the lessee can drive the vehicle each year or each month without any additional fees. Going over the mileage limit may result in extra charges at the end of the lease term.

  4. End of Lease

    Usually, at the end of the lease term, the lessee has different options:

    • Return the vehicle to the leasing company and walk away.

    • Purchase the vehicle from the lessor, usually at the residual value. The residual value is the estimated value of the vehicle at the end of the lease term.

    • Trade in the leased vehicle for a new lease or purchase.

Is leasing a car a good idea in Switzerland? chevron_right

Car leasing can be an attractive option, if you want to drive a new vehicle without the long-term commitment or large upfront costs associated with purchasing. But when you decide to lease a car, it is important to carefully analyze the terms of the lease agreement, including kilometer packages, insurance options, maintenance responsibilities, and end-of-lease options, to ensure that it aligns with your needs and budget.

How does leasing a car affect your credit? chevron_right

Before you can lease a car, you will undergo a credit check performed by the leasing company, because leasing is not permitted, if it leads to the lessee's over-indebtedness. Insufficient creditworthiness can lead to the refusal of a lease. Your payment history, debt, and open bills affect your creditworthiness. If you have already signed a lease and suddenly become unable to pay the lease rate, the leasing company has the right to terminate the contract early. Not paying the lease rate, in turn, has a negative impact on your overall creditworthiness, which is important, if you decide to lease a car again in the future.

What are the cons of leasing a car? chevron_right

Leasing has different pros and cons. 

Some of the biggest cons are:

No early termination possible
Most leasing contracts do not allow an early termination. This means that even if your life circumstances change and you may no longer need the vehicle or a different vehicle would suit your lifestyle better, you cannot get out of the contract.

Credit Impact
If you are suddenly unable to manage your monthly payments and the leasing company takes back the car from you, this might have a negative impact on your future credit, making it even more difficult for you to lease another car in the future.

Limited Customization
Leasing a car means you have limited freedom to customize or modify it since you have to return it in a condition that meets the leasing company's requirement. For example, you might not be able to change the colour of your car, or modify the interior. 

Some of the biggest pros are: 

Leasing allows you to change your car after every contract, meaning you can switch to a newer or different model every 3 to 4 years. 

Budgeting and Cash Flow Management
Leasing can assist you with your cash flow management, as it allows you to use a car, without having to tie up a significant amount of capital in a depreciating asset. Furthermore, monthly leasing payments might help you with budgeting, as it gives you a better overview of your expenses, compared to when you buy a car and you spend the money upfront. 

Have any other questions?