What is a nominal interest rate?
A nominal interest rate refers to the basic rate of interest charged on the lease and is typically expressed on an annual basis. It is one component that makes up the monthly leasing rate that needs to be paid.
It does not take into account compounding interest periods - this is expressed by the effective interest rate. Furthermore, it represents the percentage of the lease amount that the lessee will pay as interest to the leasing company or financial institution for the use of the vehicle.
The nominal interest rate in car leasing in Switzerland may be based on several factors:
- Lease Duration: Some leasing banks and companies may have variable interest rates depending on the length of the lease.
- Vehicle Type and Value: The interest rates may be different for different makes and models. The age and purchase price of the car can also influence the nominal interest rate.
- Market Conditions: Prevailing economic conditions and central bank policies can influence interest rates across the board, including those applied to car leases.
- Leasing Company Policies: Each leasing company or financial institution has its own set of policies and calculations for determining interest rates.
- Promotions and benefits: Depending on the car or leasing company, there may be promotions on certain listings that include a lower interest rate. Equally, some partner benefits or discounts may reduce the nominal interest rates.
The adaption of the interest rate for promotions can make the search for a car confusing with some leasing providers.
With gowago.ch, there is only one nominal interest rate applied to offers, regardless of make, model, the car’s age, or the specific leasing parameters (duration/mileage). This allows customers to gain transparency over their payments and making it more intuitive to compare different car offers.