Germany’s favorite child is its own car. For many people, a car is much more than a vehicle, it is a part of their lifestyle. So it’s no wonder that the car market booming in germany. Whether it’s a new or used car, demand for cars is high. But before the purchase comes the financing. If you used to save up for your first car for many years, today it can also be worthwhile to take out a car loan. Special car loans offer numerous advantages, that you should definitely consider when asking how you want to finance your new car.
What is a car loan?
A car loan is a special form of installment credit, which is earmarked. Alternative terms are car loan or car loan. It can be used to to buy a new or used car. also the settlement of repair costs is possible with it, in any case, however, the credit is tied to the use for a car.
The sum required for the purchase is taken out as a loan and, like the installment loan, is repaid for a term of your choice in monthly installments that always remain the same. In addition, most conditions of an installment loan, such as special repayments and rate adjustments, also for the car loan.
Advantages of a car loan
It may be worthwhile to use a car loan to finance a new car. The advantages at a glance:
car as security
One special feature of the car loan is that the purchased car as security for the bank serves. During the term of the car loan, the vehicle title is deposited with the bank. If the borrower is no longer able to pay his debts, the bank has the option to sell the car and thus receive the money for the outstanding debt. In addition, the vehicle title serves as proof of the correct use of the loan, which is linked to the purchase or repair of a car.
car loan interest rates
Due to the purpose limitation and the additional security of the deposited vehicle registration document, one can be secure car loan advantages. When comparing a car loan and an installment loan, the car loan often scores with its lower interest rates. The greater security makes it possible for the banks to offer better conditions. However, there are also differences in the offers for car loans. It is therefore worthwhile to compare the interest rates in a car loan calculator and thus to find the most favorable offers.
Payment and car cash purchase
Indirectly, you can secure another advantage with the car loan in addition to favorable interest rates. Many car dealers offer discounts on, if one new car paid in cash. This is possible with a car loan. Through fast online lending and simple processing, one receives his money quickly and can act as a cash payer at the dealer accordingly. This can then grant discounts. How high these are, depends on the car dealer.
Find offers with car loan comparison
A favorable car loan can be found quite simply by means of a car loan comparison. Just as for installment loans, there is also the possibility for a car loan compare online offers from different banks and to pick out the right one from the large number of car loans. For this only the desired amount and term in the autokredit vergleich are indicated and already one receives suitable results listed. The various offers are sorted in ascending order by interest rates.
Important is that for the credit car purchase as a purpose to obtain the favorable conditions of a car loan, the customer can. Another advantage of the car loan comparison is that you can be forwarded directly from the comparison to the appropriate application at the desired bank.
Apply for a car loan online
A car loan can easy and convenient online application become. The application process is almost identical to the procedure you would go through if you wanted to take out an installment loan. The bank will provide a form online in which some information must be entered. Besides personal data, as name and address, are also asked questions about income and financial situation asked. This ensures that the applicant is able to repay the car loan. Therefore, it is common to start an additional SCHUFA query and to check the creditworthiness of the applicant.
Once all the information has been entered, the form is sent off. To finalize the contract, it must be signed and returned to the bank. In addition, a postident procedure the identity of the applicant must be established beyond any doubt. The postident procedure can be done in any branch of the German post office. If all documents have been received and all information is correct, the money is transferred to the specified account and can be used for the car purchase.
Comparison of car loans and dealer financing
Another form of car financing is the so-called "dealer loan" dealer financing. This is usually the case for new cars, but there are also car dealers who grant credit for used cars as well. Dealer financing is concluded through the car dealer from whom the car is purchased. Often, there is a separate bank behind these financing offers, which is operated by a specific car brand. Well-known examples are VW Bank or Renault Bank. The offers from car banks vary widely. From zero-percent financing, which has its own clauses, to standard car loans, everything is possible.
In general, you should check every dealer offer carefully and compare it with other car loans. What is often difficult here is to use properly evaluate additional bonuses. Free equipment extras are nice, but are of little use if the car financing is extremely expensive in comparison with other offers and you do not want the extra per se. A Precise comparison of conditions is essential in addition to intensive study of the "small print. Always current offers for car loans can be found in the practical overview in a car loan comparison, so that they can be easily compared with the offers of dealers.
Lease or buy a car?
As an alternative to buying a car, car dealers also like to offer car leasing. In this case, the desired car is more or less rented. for a predefined period of time, you receive a car and pay a monthly constant amount as rent. So the monthly payment is just as common for car leasing as it is for purchasing the car through a car loan. The difference: when you lease a car, it’s possible vehicle not owned by the driver over, but remains in the possession of the car dealer. The financial aspects of car leasing are usually taken care of by a manufacturer-affiliated car bank or the car dealer’s house bank.
Leasing has advantages and disadvantages compared to a purchase. But first and foremost customer preferences are decisive. If you don’t want to own the car you drive, but instead like to test new models, leasing is the way to go. However, leasing often has a number of conditions that restrict its use compared to owning a vehicle. This is how a leased car often remain in perfect condition, since minor damages like scratches or (heavy) wear and tear will be charged when the car is returned to you.
There is no easy answer to which variant is financially more attractive, buying a car (with or without a loan) or leasing a car. In addition to the monthly charge, usage behavior, vehicle wear and tear, possible resale, etc. must also be taken into account. Include. In addition, there are personal preferences. A direct comparison is therefore not possible. In any case, all possible options should be carefully weighed and examined after deciding on a vehicle. Current car loan conditions can be checked online at any time with a car loan comparison.
Current loan interest rates in a large comparison:
installment loan comparison
Current interest rates
Current loan offers sorted by interest rate:
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