The purchase of a new or used car is usually a project that represents a somewhat larger financial burden. In order to be able to meet this, there is the possibility of being supported by external liquidity, through a car loan. But how do you find a suitable loan for your new dream car??
In our car loan comparison 2022 you will get answers to the most frequently asked questions regarding a car loan. In addition, we will give you all the important information you need before applying for such a loan.
The most important in short
- A car loan is a loan for a specific purpose, which must be used for the purchase of a vehicle.
- To be able to apply for a car loan, you must meet a number of requirements.
- The interest rates for a car loan are much lower than for installment loans without a predefined purpose.
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Evaluation criteria: these are the factors you can use to compare and evaluate car loans
Before deciding on a car loan, there are a few things you should consider. The following factors must be taken into account:
- Amount of interest
- Term of the loan
- Monthly rate
- Additional conditions and options
- Customer service and support
In the following sections, we will go into more detail on the points mentioned.
Amount of interest
One of the most important criteria for deciding on a car loan is the interest rate. This can vary greatly from one provider to another and can be set by the provider itself.
While the interest rate for classic installment loans can be as high as 10 percent, you can count on an average of half that for car loans.
Your creditworthiness and the amount of equity you contribute have a particularly large influence on the interest rate. A bad credit rating, for example a negative schufa score, can lead to an increased interest rate or a rejection of the credit application.
Term of the loan
Another factor influencing your decision should be the term of the loan. The shorter the term, the lower the interest cost. However, this also increases the monthly repayment amount.
When selecting the term, it is useful to take an interest calculator to help. Because it is important that you adjust the term and thus the rates to your monthly available capital, so that you do not have to pay too much interest or get into insolvency. In any case, calculate what you can spare each month for the repayment of the car loan.
Monthly rate
You should also use a loan calculator to help you choose the monthly rate. As already mentioned in relation to the term, you should make sure that the monthly rate does not grow over your head and you eventually become insolvent.
If you cannot afford a high monthly payment at the beginning of the financing, but you expect your financial situation to improve in the future, you can also take out a car loan in the form of balloon financing. Here, as already mentioned, you pay off a large part of the loan with the last installment.
Additional conditions and options
In addition to the interest rate, rate and term, the factor of additional conditions and possibilities also plays an important role when taking out a car loan.
Good credit providers attach great importance to transparency and try to inform you as well as possible about all the conditions and possibilities in connection with the car loan. In any case, you should carefully read the terms and conditions of the contract and contact the credit institution if you have any questions.
Possible additional costs that may be incurred include the following
- commissions
- Closing fees
- processing fees
- Costs for special repayments
Furthermore, you should make sure that your car loan also gives you the option of installment breaks or free special repayments, if possible. These pay off especially if you get into a financial bottleneck and cannot pay a monthly installment on time or if you have to repay a large amount of money at once during the term of the contract.
If you take out your loan with a car dealer, various services such as insurance, maintenance or repairs may also be included in the contract. In any case you should compare costs and benefits.
Customer service and support
Another criterion for evaluating a loan is good customer service and support. Especially with online providers, this point is often one of the weak points. Here, branch banks can score points with on-site advice.
Ideally, you should be able to reach the service staff in a variety of ways and at as many times as possible.
guide: questions you should ask yourself before taking out a car loan
Before you decide whether a car loan is suitable for you, you should know some important points. Therefore, we will explain all important information on this topic in the following sections.
What is a car loan?
Apart from the fact that it is earmarked for a specific purpose, a car loan basically works like a classic installment loan. The loan is paid out in full by the bank at the beginning of the term and must then be repaid at a constant monthly rate.
In most cases, such a loan is granted to private individuals. In special cases, such a loan can also be used to finance company vehicles.
Is it sensible to apply for a car loan??
If you are dependent on a vehicle, for example for your commute to work, but at the same time lack the necessary liquidity, it can make sense to take out a car loan. However, you should make sure that you can afford the monthly payment without any problems.
If this is not the case, we advise you not to take out a car loan. If you are dependent on a vehicle in any case, we recommend that you take out a small loan for a cheap car that does not go beyond your financial limits.
The following options are available for buying a car:
- If you want to become the owner of the car directly, we recommend you the classic car loan or the cash payment of the car.
- If you want to decide whether or not to buy the car only at the end of the financing, a balloon financing Be sensible.
- If you don’t want to own the car in the first place, this can also be a leasing can be a good alternative.
What requirements do I have to meet for a car loan??
- You must be be at least 18 years old Be old.
- You must have a fixed residence in germany have.
- Furthermore you need a account with a german bank.
- Another important factor is your income. In the best case, this should be paid regularly and by a fixed employer.
- In addition to your income, your credit rating an important role. The lending institution usually asks a credit agency, such as schufa, for this information. all banks in germany are obliged by law to take this step in order to protect the borrower from loans he cannot afford.
How and where to apply for a car loan?
the second way to get a car loan is through an online application. This offer is now available from almost every provider and is generally easier and cheaper than going to the store. For this reason, we will discuss the online application process in more detail below. You have to go through the following steps if you want to apply for a car loan online:
- In a first step, you should use a comparative calculator to find out the current conditions and compare options. We recommend that you use the verivox comparison calculator here.De to use. Here you can get an overview of the most favorable and most suitable providers of car loans for you.
- Once you have found a suitable provider, you will be directed to the website of the respective lender to a corresponding application form forwarded. Here you must first provide some personal information.
- In the connection you still have to do some upload documents.
Once you have submitted the loan application, the bank checks your details and obtains information on your creditworthiness.
- In a further step, your identity verified become. Most providers offer the videoident or postident procedure for this purpose.
- Once the bank has all the necessary data and documents, and the identity verification process is complete, it will notify the consumer about the acceptance or rejection the credit application decided. Once the application has been successfully submitted, all that is usually required is your signature to make the loan application binding.
The credit application is usually completely free of charge and without obligation. You can therefore submit a request to several lenders and choose the most suitable offer for you in the end. A contractual obligation only arises after you have signed and returned the credit application.
