No, a down payment is generally not required when taking out a private credit (personal loan) to finance a car with Gowago.
At Gowago, credit amounts are always rounded to the nearest full CHF 1,000. This means that if a car’s price is not a round number, you will need to cover the difference as a down payment.
How it works:
- If the car costs CHF 18,300, the credit amount will be rounded down to CHF 18,000.
- The remaining CHF 300 must be paid as a down payment.
- The credit amount can not be rounded up to the next full CHF 1,000.
Apart from this detail, the necessity of a down payment depends on your budget preferences but also your creditworthiness.
Unlike leasing, where a down payment may be necessary, a private credit can cover the entire or only parts of the purchase price of the car - so you can borrow the complete sum to buy the car without upfront payments.
This does however mean that the monthly rates will be higher. With private credits, especially for cars, it can make a lot of sense to pay a certain amount upfront in order to strongly reduce the monthly bills and also the interest you are paying on the loan.
Additionally, depending on your financial situation and creditworthiness, a bank may only grant you a limited amount of money for your car credit. In this case, it is necessary to pay a percentage of the car already up front.