Car loan ➤ Car financing with Miro Kredit AG

Car loan

Buying your own car to be mobile is often a big financial decision. While some Swiss are lucky enough to be able to pay the purchase price immediately, most of us need financing to fulfil our dream of owning a car. This is where the car loan comes into play – a financing solution specially tailored to your dream car.

But how sensible is it to finance a car? What are the advantages of a car loan as opposed to leasing and how does car financing work at Miro Kredit AG?

How sensible is it to finance a car?

For many people, a car is more than just a means of transport – it can be a tool for independence, flexibility and even professional success. If you have sufficient financial resources, a cash purchase can be the most cost-effective option – especially if you want to use the vehicle for a long time. This is because new cars depreciate considerably in the first three years.

It makes neither financial nor economic sense to buy a car and sell it again after only two or three years with a considerable loss in value. With a cash purchase, you immediately become the vehicle owner, which gives you the freedom to choose the equipment and insurance. The only disadvantage of a cash purchase is that you have to pay the total price of the vehicle in cash immediately.

To avoid this disadvantage, you can take out a car loan in Switzerland. A car loan allows you to purchase a vehicle immediately without having to save up money for years. Similar to a personal loan or cash payment, the new car becomes your property directly with a car loan. The monthly instalments allow you to use the car immediately and spread the costs over a certain period of time.

In addition, a car loan can be the optimal solution for vehicle financing in other cases:

  • When the purchase can’t wait.
  • If you are expecting a new addition to the family.
  • If your current vehicle is defective.
  • If you don’t want to touch your savings.

How high is the interest rate on a car loan?

With a loan – whether it’s a personal loan or a car loan – the interest rate is usually set based on the borrower’s financial situation. A low risk and high credit score usually result in a better interest rate, while borrowers in riskier financial situations may be offered higher interest rates.

To get the best interest rates for your car loan, it is advisable to compare offers from different lenders and improve your credit rating if possible. At Miro Kredit AG, we offer our customers particularly favorable interest rates of 4.5 to 11.95 percent.

Is a car loan cheaper than a normal loan?

Whether a car loan is cheaper than a normal loan depends on whether the car loan is earmarked for a specific purpose. Earmarked car loans often offer lower interest rates due to the security that the vehicle itself represents. Furthermore, car loans are often specifically tailored to vehicle purchases and may offer flexible repayment options and other benefits that may not be available with a conventional loan.

However, the total cost of the loan is also made up of the loan term and the monthly installments. If you want to finance your car, you should therefore carefully check the total costs and loan conditions and choose the car loan that best suits your individual needs.

Car loan vs. leasing

In addition to a car loan, there is another vehicle financing option available to you: leasing. Both options offer different advantages and disadvantages.

A car loan allows you to buy the vehicle and pay off the sum over a certain period of time through monthly installments. You own the vehicle immediately after purchase. Therefore, car loans often offer greater flexibility in terms of vehicle use and ownership, as you can keep the car for as long as you want. Furthermore, you can customize and modify the vehicle as you wish – without any restrictions from the lender.


  • Thanks to flexible loan terms, you can adapt the repayment to your financial needs.
  • The vehicle is yours, which gives you a feeling of ownership and freedom.
  • Depending on the contract, you have the option of repaying the loan more quickly, which saves you interest costs.
  • You have a free choice of workshop for servicing and repairs, giving you flexibility and control over the maintenance of your vehicle.
  • You can claim the interest costs against tax, allowing you to benefit from considerable cost savings.


  • As you are the owner of the vehicle, you also bear the risk of depreciation, which in turn can affect the resale value.
  • Car financing can affect your credit rating and may have a negative impact on other financing options.
  • You have to pay the costs for repairs and maintenance yourself.

With leasing , on the other hand, you rent the vehicle for a fixed period and pay monthly leasing installments. At the end of the leasing contract, you return the car or have the option of buying it at a previously agreed residual value. Leasing contracts often offer lower monthly payments compared to car loans and usually require less or no down payment.

Leasing options can also be attractive if you want to drive a new vehicle every few years, as you can sign a new leasing contract every few years.


  • Leasing contracts often have a wide range of terms, so you can choose the term that suits you best.
  • When your leasing contract expires, you can conclude a new contract and simply switch to a more up-to-date model.
  • You bear no risk of loss of value.


  • Car leasing can also affect your credit rating and have a negative impact on other financing options.
  • At the end of the leasing contract, you must return the vehicle to the lessor, as you do not acquire ownership of the vehicle.
  • If the contractually agreed kilometer limits are exceeded or the vehicle is damaged, you can expect high additional costs. In addition, you will not be able to use the vehicle as you wish.
  • If you wish to terminate the leasing contract early, you must also expect additional costs.

The most popular form of financing in Switzerland

Which alternative is better?

All in all, a car loan offers significantly more advantages – especially in terms of ownership, flexibility, and freedom. In contrast to leasing, with a car loan, you as the borrower acquire immediate ownership of the vehicle, which offers you a long-term investment and greater financial security. A car loan also gives you a free choice of insurance and a workshop for servicing and repairs.

Another key advantage of a car loan is the tax deductibility of the interest costs, which is not possible with leasing contracts. As such, a car loan often gives you greater financial flexibility and control over the vehicle, making it a more attractive option for many car buyers.

Which bank will finance the car purchase?

When it comes to financing the purchase of a car, Miro Kredit AG is an excellent option. As a loan comparison platform with over 45 years of experience , we offer our customers particularly favorable online loans that enable you to fulfill the dream of your dream car. With our attractive conditions and simple application process for online loans in Switzerland, we make financing your vehicle stress-free.

How much income do you need for a car loan?

Certain criteria apply to the granting of a loan in Switzerland, which you must fulfill as a borrower. Your income in particular can play a role here. To obtain a loan, you first need a regular income and a sufficient budget surplus, as lending is prohibited under the Swiss Consumer Credit Act if it leads to over-indebtedness. This means that you must be able to repay the loan without any problems.

Whether this is possible with your income depends primarily on how high the required loan amount is and which loan term you choose. Basically, the higher your income and the better your credit rating, the better your chances of approval and favorable conditions.

There are also other requirements that you must fulfill in order to obtain a Swiss car loan:

  • Your permanent residence must be in Switzerland.
  • You must either have Swiss citizenship or be in possession of a B or C residence permit.
  • At the time the contract is concluded, you must have full legal capacity and have reached the age of majority.

What does the bank check for a car loan?

Similar to a conventional personal loan, the bank also checks various factors when you apply for a car loan in order to assess your creditworthiness and minimize the risk of default. The usual checks include, for example:

  • Your creditworthiness,
  • the amount of the requested loan,
  • Your income and employment history
  • and, if applicable, the amount of the down payment and the value of the vehicle to be financed.

In addition, the bank often also carries out a check of your credit history to identify previous loan defaults or payment problems. Based on this information, the bank ultimately decides whether to approve the car loan and sets the interest rates and conditions.

Miro Kredit Swiss - Conclusion


A car loan is an attractive financing solution for anyone who wants to fulfill their dream of owning a car. With flexible terms, low interest rates, and the option to purchase your dream car immediately and customize it as you wish, a car loan offers a practical and cost-effective way to realize your vehicle purchase.

With Miro Kredit AG, you too can fulfill your dream of owning your own car. Use our online loan calculator now to apply for your car financing according to your wishes.

Private loan calculation example:
Private loan calculation example:

Loan amount: CHF 10,000 without insurance. Repayment period: 12 months

Interest (including costs) amounts between CHF 240.50 and CHF 574.25. Effective interest rate 4.5% – 11.95%. Possible loan repayment period from 12 to 120 months

Processing fees: CHF 0.-. Granting a loan is prohibited if it leads to over-indebtedness (§ 3 Unfair Competition Law – UWG)