Car financing – buy a vehicle on installments

Our own car is one of our most important commodities: we use it almost every day to get to work, to go shopping or on trips and visits to friends. In addition to being a practical means of transport, it is often also a status symbol. If you want a new car and need additional capital for the purchase, you can simply take out auto financing. home-and-real-estate.De tells you how to find the right loan for your desired vehicle. Calculate your car financing directly on home-and-real estate.De and benefit from a favorable interest rate with online immediate commitment and fast payment.

Apply here for a low-cost car loan at 2.95% with an immediate online commitment and fast disbursement!

Apply here for a low-cost car loan at 2.95 % with immediate online approval and fast disbursement!

Our excellent online offer for your car financing

Car financing - buy a vehicle on installments

home-and-property.De recommends the degussa bank car loan for online car financing! In June 2020, the German business newspaper "handelsblatt" named degussa bank’s car loan the "TOP car loan with interest rates independent of creditworthiness".

With us, you can calculate your car financing conveniently on your computer or smartphone and benefit from the advantageous conditions when concluding the deal online.

  • Only 2.95% effective annual interest rate
  • Loan amounts from 2.500 to 40.000 euro
  • Flexible terms from 12 to 84 months
  • Financing of two-wheelers is also possible
  • Uncomplicated: fully digital application, immediate online approval and fast payment of the desired amount

With car financing for a new or used car

You can use the car loan from degussa bank, the product provider here, for the vehicle you want, regardless of the brand, dealer or condition of the vehicle. Finance a new car or buy a used one at a reasonable price. Car dealerships and other dealers often offer attractive conditions for one-day registrations or annual vehicles, allowing you to save money without having to make any major compromises on the quality of the vehicle. Take advantage of the offer from home-and-real-estate.De and find the optimal car financing for your project here.

The right car financing on
home-and-property.Find De

To find a favorable car financing, simply use the free car financing calculator on home-and-real estate.De. In just a few minutes, you can calculate the exact car loan that will best meet your purchase requirements. The subsequent application process is also quick and simple.

Step 1: Select the loan amount and specify the term

For requesting a credit offer, start with the desired credit amount. Sums of 2.500 to 40.000 euro possible. When buying the vehicle you want, include any equity capital you can contribute to the financing. The lower the loan amount, the better the conditions are.

If you take out a car loan, you will have to pay it back in monthly installments. In the next step, specify the period over which you want to repay your loan. Possible terms are 12 to 84 months. As the term of the loan varies, so does the monthly rate and the total interest cost of the loan. Compare several terms and tailor your loan to your income situation and needs.

Step 2: complete personal information

In order to prepare an offer, degussa bank requires just a few details about you in the calculator, as well as information about your employment and income situation. This serves to check your creditworthiness so that degussa bank can determine your individual interest rate. You need to specify something like this:

  • Full name and address
  • Date and place of birth
  • Family status/number of children
  • Employment, income and expenses

Step 3: get immediate approval and sign the loan agreement

Immediately after sending the form, your credit request will be checked by degussa bank. If the assessment is positive, you will receive an immediate online commitment and a binding offer in real time. In this form you will find all the information you have provided. If you like the offer, you can finalize your loan application in two different ways:

  • Digital conclusion:
    you take out the loan fully digitally. You can legitimize yourself in a short video chat using the video-ident procedure. You also receive the contract electronically and sign it on your PC or smartphone. thanks to the fully digital closing process, your loan application will be processed particularly quickly, and you will receive your money no later than the next working day.
  • Postal closing:
    degussa bank will send you the contract in the traditional way by mail. Enclosed you will find a post-ident-coupon, which you can use for legitimation by an employee in a post office. After signing the contract, send it back to degussa bank by mail. Since sending and returning the documents takes longer, the processing of your request and the payment will also take a little longer than with the fully digital version.

What documents are required for car financing?

For a car financing you need some documents to prove your identity and your creditworthiness. this includes a valid identification document, i.e. an identity card or passport. In order for the bank to assess your creditworthiness, you will also need to provide information about your income. For this, you must have your salary or wage statements as well as the account statements of the last three months available.

Close your car financing as an online loan via home-and-real-estate.De ab, you do not need to visit a bank or post office for the legitimation as well as the provision of the proof of income. There is also no need to copy and send documents. You simply confirm your identity using the video-ident procedure – in addition to your ID, all you need is a smartphone or a PC with a camera and microphone. Even the submission of evidence is entirely digital – simply scan or photograph the necessary documents and then upload them to the customer area of degussa bank.

If you would like more detailed information about applying for a loan online, this guide article will help you.

Car financing or leasing? What is better?

With classic car financing, you acquire the vehicle with your or. With borrowed capital. Once the loan has been repaid, the car is yours – even if you deposit the vehicle title with your lender as collateral during the term of the loan. So you can use the car without restrictions and equip it as you like.

Alternatively, you can lease the vehicle from a provider of your choice. You do not buy the car, but only receive the right to use it through monthly rental payments. At the end of the contract period, you return the car to the leasing provider or you can often buy it for its residual value. This has various advantages and disadvantages:

  • Low monthly installments
  • Access to the latest models
  • Sale of the old vehicle is not necessary due to the return of the vehicle
  • Maintenance and repairs are taken over by the leasing provider (if agreed)
  • Tax savings and no burden on the equity ratio as an entrepreneur
  • Vehicle is not your property
  • No permanent countervalue for the capital invested
  • Restrictions on use, z.B. Often limited mileage
  • Often no free choice of repair shop
  • Contract can hardly be terminated before the end of the term
  • Additional payment required on return if vehicle is not in contractually agreed condition

If you already know that you want to use the desired car for a longer period of time, car financing is often the better choice. If you are undecided about which car to buy, or if you are a business owner with a fleet of vehicles, you may benefit more from leasing. Compare the advantages and disadvantages of both options and weigh up which alternative is best suited to your personal situation.

Leasing is an alternative to car financing, with both advantages and disadvantages. Our experts explain which option makes sense for you!

Many roads lead to car financing

Car financing can be implemented in various ways. For example, you can decide whether to take out your desired loan with the dealer or an independent lender. There are also various options for structuring the repayment. The different possibilities presents you home-and-real estate.De briefly:

Installment loan at the dealer
you can purchase your vehicle directly through the provider or. Finance your credit partner company. The processing of the loan is very convenient, and a lot of organizational work is relieved of you. The dealer may also offer particularly attractive terms, such as zero-percent financing. However, there are a number of things you should consider. While it may sound tempting at first to pay no interest on a car loan, a cash rebate often results in significantly greater savings, even if you have to take out a car loan with a dealer-independent institution to do so. So check zero-percent financing carefully and compare the cost of the "interest-free" vehicle with that of similar models obtained via an interest-bearing loan.

car loan at a branch or direct bank
take your car financing to an independent branch or direct or. If you choose an online bank, you have the advantage of being able to choose between several providers and are not dependent on the dealer’s credit offer. In addition, you can buy your vehicle in cash with a loan from an external lender and thus often secure a lucrative cash discount. You can also obtain favorable interest rates from independent banks if you specify a special purpose when taking out the loan. In the case of a pure "car loan", which only serves to purchase the vehicle, credit institutions know that there is a countervalue for the loan. The car then acts as collateral and reduces the risk of non-payment, which usually gives you better conditions than if you borrowed money for free use.

3-way financing
a 3-way or balloon financing is a special form of car financing. This type of insurance is offered by almost all car dealers, but you will rarely find it at a bank. with balloon financing you only have to pay small monthly installments. At the end of the contract, a (usually predefined) larger final installment is still outstanding. You can either pay this off, continue financing with a second loan, or return the vehicle to the dealer. In the latter case, its residual value serves to repay the remaining debt. As with leasing, however, certain conditions apply to the return of the vehicle. If the vehicle is worth less than the outstanding loan amount, or if you have not adhered to previously agreed limits on mileage, you will still have to pay an additional fee.

How to secure your car financing

If you take out car financing with a bank or car dealer, you can secure the loan in various ways:

  • A residual debt insurance – usually called credit protection bond or installment protection called – is used to protect you from non-payment. For a monthly fee, the police will take over the payments if you are unable to do so yourself, for example due to incapacity caused by illness or accident. If taken out in a plus or premium variant, a credit protection policy often also pays the installments in other cases, such as in the event of a loss of employment through no fault of your own.
  • With a purchase price insurance insure yourself against the loss of value of your vehicle. If you have an accident with your financed car and it is totaled, or if the car is stolen, the vehicle insurance will only cover the current value of the vehicle, which is often much less than you borrowed when you financed the car. The purchase price insurance will then also pay you the difference: this way you can easily pay off the loan or quickly purchase another vehicle of equal value. Purchase price insurance is mainly offered by dealers or car services such as ADAC; independent banks usually do not have it in their portfolio.

Example of car financing

If you take out a car financing, the loan could be as follows: we assume in our example that you discover a cheap yearly car at a price of 22.000 euro. You have already saved up half of the purchase costs yourself for the car purchase and now you have to take out a loan for 11.borrow 000 euro. As your creditworthiness is given due to your income, the bank offers you an effective annual interest rate of 2.95 % for your car financing. you pay back the loan to the credit institution within five years.

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