Running across the street in a new, glowing car is usually a dream without money. Many buyers – both when buying a new car and when buying a used car – therefore choose a car loan. These are the lowest amounts at the top, which is why borrowing for car finance is not uncommon.
Buyers have the choice between different financing models: The installment loan business is taken up by a house bank, while car dealers offer, for example, 3-way financing or leasing models. The entire financing process is then handled by the specialist dealer. It is not uncommon for additional costs to be incurred for the residual debt insurance or for financing to be limited to individual vehicle types.
Therefore, not only interest rates should play an important role in selecting funding, but also the additional costs and constraints associated with the loan. But even the cost of a used car should not be underestimated. For a private purchase, however, the traditional installment loan is a good decision – so you can immediately pay the car in cash and have it right there.
Due to the large variety of different financing options, it is difficult to make the right decisions. 0% are seductive, but not at second glance. Therefore, it makes sense in each case to weigh the different variants with each other. You should include both funding from independent banks and the offer of car banks in your comparisons.
If you have opted for a separate installment loan without a specific purpose, you do not have to submit your new car as a deposit with the house bank. However, such dedicated loans, which can only be used for the purchase of a car, are associated with particularly advantageous conditions. Flexible: An installment loan usually allows you a high degree of flexibility through special repayment or installment break outside the installment plan.
This means that the loan will be repaid faster or you are not in default of payment. Discount: Before you make use of the loan, you should ask the car dealership of your choice how much cash discount you have on a cash payment. This means that you ultimately need to borrow less and reduce the cost of borrowing.
In the case of dedicated vehicle financing through a dealer loan, you must meet a number of requirements, such as: B. the fulfillment of a kilometer limit or restraint of the vehicle license. Direct contact: A loan through the dealer has the advantage that you have a central contact for purchasing and financing. Already at the first purchase in the car house you can inquire about the possibilities of the credit financing and save yourself the way to various credit institutes.
You can then get a special low-interest loan. This means that you can also get a discount if you finance on the highway. Lending on advantageous terms depends on several criteria. This will reduce the default risk for BuyNer to a minimum. Consider other factors such as fuel consumption or loss of value that affect the cost of ownership of the vehicle.
If you want to know how much money you can spend on the monthly installments, you should create a large cash flow statement. If you pay for your car through a dealer bank, you should check the terms of the loan agreement. This increases the effective vehicle costs.
Once you have determined your need for credit and the acceptable monthly rate for you, you can contrast different loan offers from direct banks and automobile banks. You can also use our car loan comparison. Also compares the different forms of financing such as balloon loans or 3-way financing. When reconciling, always pay attention to the effective interest rate, as it includes all ancillary costs and provides information about the actual costs.
The auto-finance calculator allows you to quickly and easily check offers from various banks. You can choose whether it is a new or used vehicle. Compare the different offers based on the stated interest rates and other requirements. The pay slips of the past few months allow you to prove the house bank a regular salary.
With the approval letter Part 2 you certify the house bank that you are the owner of the vehicle.
However, if the loan is earmarked, you must file the vehicle registration card to transfer the vehicle to the house bank as collateral. Before you apply for a loan, you should also carefully examine the different types of car loans and their advantages and disadvantages, so as not to fall into the trap of costs.
In both cases, a installment loan is a good decision. A balloon loan is only useful for a new vehicle, since the high completion rates no longer corresponded to the used car value at the end of the vehicle running time. May I co-finance every vehicle? You can co-finance any vehicle of any kind with a loan from an independent bank.
If the loan is foreseen, the principal bank may set specific targets for used vehicles, eg a maximum mileage or a maximum age of the vehicle. If you choose a loan without a specific purpose, there are no restrictions on the vehicle. Why is the financing of cars often cheaper than installment loans? The loan may only be used for the purchase of a car; In addition, the car of the house bank must often be deposited as a pledge.
This reduces the risk of default and gives the borrower better conditions. Such financing can make sense if you want to pay for a vehicle, but currently can not stand the burden of high monthly loan rates. This form of financing is characterized by an initially low repayment rate. It should be noted, however, that the high closing rates at the end of the period incurred – you should therefore already in the repayment phase to save a pillow for this last installment.
You can also choose this loan if at the end of the contract period you have access to the necessary financial resources, for example by paying a life insurance policy or an inheritance.