Car Leasing hack

I have a car registered to my father 70,000 km and 5 years of life, a small car that makes me about 900km with 70chf. So zero costs if not about 150chf to do 56km (round trip) home-work. There is no need for him, but I was thinking of getting my own car, in particular I was thinking of the Tesla Standard range model 3. around 403chf of monthly leasing. I have a free refill at work so in 90% of cases I would not pay for fuel. Then Someone told to me that at the moment I can only deduct the home-work route by train since it is my father’s car, while if I had my own car I could deduct the route in full and from what I understand in Ticino it would be 3000 chf per month (do you know if it is realistic and the speech is correct?). therefore practically 250chf per month + 150chf saved on recharge + I have read that there are deduction incentives for those who invest in an eco-sustainable way (this is the case? do you know something about it?). I would even reduce the monthly 150 of fuel that I would pay in insurance (about 1250chf) and number plates (about 220 chf). so a new car at almost 0 cost. Does it seem to you that it is something intelligent? As a kind of investment?

Update: maybe I didn’t quite understand how tax deduction works … right?

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You can deduct in full for the cantonal tax, for the federal tax the deduction is capped to CHF 3’000. 0.60 cts/km for the canton and 0.70 cts/km for the federal tax.
However don’t take it for granted, it is stated that the deduction is accepted “Exceptionally, if no public transport is available or if the taxpayer cannot use it (e.g. infirmity, considerable distance from the nearest stop, unfavorable hours, etc.) or if the use of private transport is required for work reasons”.
In the past I had no issue to deduct but it was possible for me to show that I was fulfilling the criteria, in case they had requested.

Last year there was a lump sum incentive of CHF 2’000 on the purchase, I’ve heard that the available money was used → I don’t know if if it has been renewed or if / when they plan to renew

That’s the deduction limit per year, so your calculations might be off…

ok my mistake, I made better calculations. The annual deduction should be around 3000 chf (the train station is about a 15 min walk from my house and taking the train I would get to work almost 20-30 min earlier and return home 20-30 min in the evening). If I have done the math correctly, the effective annual income is 1601 chf from the tax deduction. In Ticino, the annual incentive is 4000 chf on the purchase. Road tax 203 chf per year. Minimum insurance 1165 (Basile insurance). I calculated that if I kept it for 3 years and gave it back, the total cost for me would be around 11’629chf. This taking into account that the 5-year redemption value would be 15’185 chf, so in theory giving it back 2 years earlier and taking into account the high price holding of a tesla at the current time, I could (by selling it on my own) at least to recover 20’000 chf in 3 years? So 11629 (the extra amount I would pay compared to keeping the old car and paying for fuel) - about 5,000 (the difference in sales from the final redemption) = 6,629 chf to have the car 3 years old. The whole is very approximate because for example there are no paid maintenance checks for the tesla, while there would be for the other one, if I move to Lausanne as planned, the circulation tax will be 0 and not 203 chf. Last but not least, having a new car, mine and fully equipped, against a current Hyundai i20 (2015) (great car for everyday use and I can only say thank you for the past 35,000 km). What do you think?

Go and test drive one, after that you will want it no matter if it makes economical sense or not :slight_smile: Feel free to use my referral code which you can find on my blog.

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I’m no specialist and may very well be wrong but trying to cover some potential blind spots:

CHF 403/month for a 3 years lease seems cheap , is there a downpayment? If yes, it should be included in the calculations. If the plan is to lease on 5 years and turn it back after 3 (or buy it out and sell it on your own), then the financing company is likely to bill penalties for that since the interest calculation is made on the whole life of the lease.

Unless you drive very little, you are likely to need at least one change of tires in 3 years. If applicable, those should be accounted for. I understand that EVs require less maintenance than traditional cars but my understanding is that a service after 2 years is still recommanded for the braking liquid and air filters. Making this may be mandated by the terms of the lease if you take one.

Also, if you buy out the car in order to sell it yourself, you’ll have to frontload the money. Given what you’ve shared of what you are trying to achieve, a bank loan rather than a lease might be an option worth considering. The main differences are that, in the case of a loan, the car belongs to you, you’re not required to take insurances (except the liability one, though the other ones are still recommanded), your liability can be repaid earlier than the contractual term without penalties and your debt and interests might be tax deductible (leases aren’t).

Exactly my thought - no way it’s so low unless you have a large downpayment / 1st rate upfront, or if it’s a 5y @ 10k km/y with high residual value, or something else as silly.

@ OP I don’t believe you can “make money” by getting a new Tesla vs. that good old i20, no matter which way you spin it. :slight_smile:

P.S. Please use newlines or even bullet points (when listing items/calculations) in your writing.
This way it is incredibly tedious to read.

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I tried a performance a few days ago and it is clearly a nice car that gives you good feelings even if I would take the standard, but the comfort I had experienced on SUVs (like jaguar E-Pace) is another thing. :sweat_smile:

You are absolutely right, unfortunately I am not able to set up an organized discussion with the accounts.
As a down payment I would give 7,000 chf (of which 2,000 would be immediately discounted as an incentive and another 2,000 reimbursed by the canton within 30 days) so it would only weigh 3,000 chf for me. I mean 3 years because the lease would be 5 but I would give the car in 2 years before the lease expires. The sellers have always told me that there would be no penalties, on the contrary that many often do so and give the cars back after 2-3 years (to better amortize), if you have different knowledge, tell me, I have never trusted this ease with which they say it.

For the tires I do not take it into consideration because in any case I would have to pay them also on the current car (among other things I would have to change them next winter, so I would save the new set of tires).

The check after 2 years I was told that it is not mandatory, but optional (definitely to be done) with a cost of only 100chf, much less than the maintenance and control costs of a thermal as far as I know.

With the credit, the interest rate rises from 3.03% to 3.90%, but it would actually cost less in total with a difference of 665chf, but I sell a monthly payment of 645 chf instead of 403 chf.
I don’t know if even in this case a full helmet should be made (probably not?) But who would not do it with a new vehicle of these figures at least the first 3-4 years. Would partial coverage suffice? They also told me that with the credit you would own a car so they would increase the taxes on the assets, correct? In leasing, on the other hand, could it be entered as a debt to deduct it from taxes (perhaps as a generic debt to the bank)? But from what you tell me it could be the other way around.

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