Pawning a car in Switzerland: what the cantons allow

Geneva: explicit refusal and a monopoly

The Geneva public pawn office (Caisse publique de prêts sur gages) refuses cars, motorcycles and bicycles. Since article 6 paragraph 2 of the LCPPG bars anyone else from professional pawnbroking in the canton, no car pawn loan is legally possible there.

Penalties for unauthorised lenders

Geneva law allows the Council of State to close establishments in breach (article 6 paragraph 3), with penalties set out in article 20. An advert offering money in exchange for leaving a car in Geneva should therefore arouse suspicion.

Zurich: bicycles yes, cars not mentioned

The Pfandleihkasse of the Zürcher Kantonalbank, at Zurlindenstrasse 105, does not list cars. It does, however, accept recent branded bicycles accompanied by the purchase receipt, the only means of transport among the pledges it takes.

Bern covers motor vehicles and boats

The Bern ordinance on trade and crafts (HGV, BSG 930.11) expressly covers, in its article 14d, bulky items such as a motor vehicle or a boat. No other cantonal text identified regulates this kind of pledge in such detail.

Storage and insurance charges under control

Under article 14d HGV, a Bern lender may charge local storage costs and upkeep or insurance at market price only if the agreed rate is at least 3 points below the ceiling, with a monthly breakdown in the contract.

A rate capped by federal law

Article 14b HGV caps the rate charged by Bern lenders at the federal maximum for consumer credit. The FDJP lowered this maximum to 10% for cash loans from 1 January 2026, down from 11%, according to its press release of 31 October 2025.

Who may lend against pledges in Bern

The Amt für Wirtschaft grants the licence (article 15a HGV) for five years at most. The lender must be entered in the commercial register, insure pledges at their market value and hold professional liability cover of at least CHF 1 million (article 14a).

Fribourg keeps the activity for public bodies

In Fribourg, only public institutions, municipalities or public-interest undertakings obtain a licence from the Security, Justice and Sport Directorate, valid for one year, for CHF 1,000 and a security deposit of CHF 10,000 to 100,000.

Sale of the vehicle if the loan goes unpaid

In Bern, article 14e HGV requires formal notice by registered letter giving 8 days, then a single publication of the Pfandschein number in the official gazette, before a public auction without prior debt enforcement, on the basis of article 132 EG ZGB.

Realisation costs and surplus

Article 14c HGV allows realisation costs to be charged only if the sale produces a surplus. The capped rate also covers all running costs, which sets the Bern framework apart from unregulated car loan offers.

Checking the cantonal licence

According to the CPPG FAQ, the Swiss Civil Code has made pawnbrokers subject to cantonal authorisation since 1912. Before leaving a car, ask for the licence number and the issuing canton; the items refused as pledges in Switzerland complete the picture.

Comparing with France, Belgium and Spain

The car pawn loan in France and pawning a car in Belgium follow other rules. In Switzerland, the cost should be read against Swiss pawn loan interest rates and the 10% federal ceiling.

Authorities and institutions involved

• Caisse publique de prêts sur gages (CPPG): The only authorised pawnbroker in Geneva; expressly refuses cars, motorcycles and bicycles.
• Pfandleihkasse der Zürcher Kantonalbank: Zurich public pawn office that accepts recent branded bicycles but does not mention cars.
• Amt für Wirtschaft du canton de Berne (AWI): Issues licences to run a pawnbroking business under article 15a HGV.
• Direction de la sécurité, de la justice et du sport de Fribourg (SJSD): Authorises pawnbroking, which is reserved for public or public-interest bodies.

Before handing a vehicle to a lender

1. Check the canton: in Geneva, no car pawn loan is legally offered outside the CPPG, which refuses vehicles.
2. Ask the lender for its cantonal licence, its commercial register entry and its insurance.
3. Compare the advertised rate with the 10% federal ceiling for cash loans in force since January 2026.
4. Insist on a monthly breakdown in the contract of storage, upkeep and insurance charges for the vehicle.
5. Keep the Pfandschein and note the due date to avoid formal notice followed by a public sale.
6. After a sale, claim any surplus, the only case in which realisation costs can be charged in Bern.

What governs the cost of a car pledge

Documents an authorised lender may ask for

• Official identity document
• Vehicle registration document
• Proof that you are the sole owner
• Keys and service records
• Proof of residence in Switzerland
• Written contract setting out the rate and monthly charges

Pitfalls of pawning a car in Switzerland

• Accepting an offer of a loan against a car in Geneva, when the CPPG monopoly makes this professional activity illegal in the canton.
• Signing without checking that the rate stays below the federal consumer credit ceiling, lowered to 10% in 2026.
• Letting a Bern lender add storage charges when its rate is not at least 3 points below the ceiling.
• Ignoring the registered letter giving formal notice: eight days later, the public sale can be prepared.
• Taking a bicycle accepted by the ZKB as a sign that Swiss public pawn offices accept vehicles in general.

General information, up to date as of October 2026 and non-contractual: always check the terms with the Crédit Municipal or the institution concerned.