With a car loan, cars are financed. This can be for cars, motorcycles or mobile homes. With classic car loans, the financed vehicle serves as collateral. This increases the chances of obtaining car financing, while the conditions are more favorable. Some car loans are designed as annuity loans. Then borrowers repay at a constant rate over the term of the loan. Other variants provide for a final installment. Now you can easily compare your individual car loan online with our car loan calculator here and find a favorable provider.
Comparison: what is a car loan?
Photo: visualgeneration / depositphotos a car loan is needed to finance vehicles. Private vehicle financing is available for new and used cars, motorcycles and mobile homes.
A significant proportion of car loans on the German market are granted directly by dealers or manufacturers. These car loans are often more favorable visually. However, those who take out financing from the dealer or manufacturer forego discounts. These discounts are possible with a free car loan.
Car loans from banks can be structured as an installment loan or balloon financing. With an installment loan, borrowers pay equal monthly installments. Such loans are also common for other consumer goods.
With balloon financing, part of the loan amount is transferred to a bullet final installment. This is financed during the entire term (d. H. interest), but not repaid. The consequence: the monthly installments are significantly lower during the term of the loan. The final installment can be paid off by selling the vehicle or with another loan. Car loans with final installment are thus similar to leasing contracts in some ways.
Good to know: if an annuity loan and balloon financing have the same interest rate, balloon financing is more expensive in absolute terms. This is due to the balloon rate. This extends the average loan period. With a suitable car loan calculator, you can quickly compare the two options. Prerequisite is that the car financing calculator provides for both variants.
Many banks also advertise ordinary installment loans as car loans. A real car loan, however, provides for a transfer of ownership by way of security. The financed vehicle serves as collateral from the bank’s point of view. This tends to lead to more favorable conditions and a higher acceptance rate.
Even if the vehicle serves as collateral, the borrower must have a sufficient credit rating. Typically, a sufficient income and a positive SCHUFA information are necessary.
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A car loan is also called car financing. This is an earmarked loan for the purchase of a new or used car. In the calculator, we show you the five best conditions for the loan you need.
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Provider: which take out a car loan?
There is a large number of providers for car financing on the German market. A car loan comparison is therefore urgently required. The offers differ in a number of aspects. A car loan calculator is often the best guide for borrowers.
when comparing car loans, consumers should look for the lowest possible interest rates. Free special payments are also advantageous – ideally both as full and partial repayments.
An important aspect concerns the disbursement procedure. With a low-cost car loan, the bank pays out the loan even before the car is purchased. Car buyers can then start looking for a suitable vehicle with the financing behind them. The documents necessary for the transfer of ownership can be sent a few weeks or even months after the payment has been made.
In the case of car financing, the acceptance criteria apply to both the borrower and the financed car. Many banks set a maximum age for the vehicle. Often there are also upper limits for the financing. some banks only finance cars and motorcycles and not motor homes.
A good car loan is uncomplicated. Application and disbursement should take place quickly. For example, upload functions for necessary documents and digitalized application forms for identification are helpful here.
Attention: especially uncomplicated often appear installment loans without earmarking. Since no transfer of ownership by way of security is required here, the applications are particularly fast. However, the bank does not have any additional security as with a real car loan. This can lead to higher interest rates.
The above aspects are taken into account, for example, in our car loan comparison.
Rates: What does a car loan cost??
Photo: visualgeneration / depositphotos the costs of a car loan consist primarily of the interest on the loan. These are higher in absolute terms for a car loan with a final installment than for a loan with constant installments.
Additional costs may apply for optional insurances. However, these are not mandatory. The interest rate depends on the creditworthiness of the borrower, the financed vehicle and the respective bank. The market situation also plays a role. Interest rates for car loans are based on money and bond markets. The higher the interest rate here, the higher the interest rate on the loan.
To calculate the costs or. To calculate the price of your personal car loan, use our comparison tool.
Guide: the best car loan providers in comparison
The best car loan depends on your individual data. To calculate the best offer for you with our calculator use our free auto loan comparison. Here we show you the best offers for your needs.
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Car installment loans are special-purpose installment loans. They are granted by car manufacturers and dealers as well as by credit institutions. An installment loan is considered to be earmarked if it is intended for the fulfillment of a specific purpose. The aim of a car installment loan is therefore to finance a vehicle, to carry out repairs or a conversion. It is one of the most common types of credit, because although the car is an everyday commodity, consumers are rarely able to finance it entirely out of their own pockets.
Evidence for earmarked loans
Photo: ldprod / fotolia due to the earmarked nature of the car installment loan, lenders require proof that the borrowed sum is actually used for the purchase or repair of a car. In such cases, the vehicle registration document usually serves as collateral. If the borrower is not able to pay outstanding installments, the lender has the right to sell the vehicle title and thus the vehicle. The still unpaid loan amount is covered in this way.
The various providers of installment car loans often advertise low interest rates. However, the loan interest rate is not the only decision variable. In addition, there are other criteria, such as the amount of the down payment and the monthly installments, as well as the nature of the final installment.
Find favorable terms online with the car loan comparison tool
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Take advantage of the discount for cash payment
When it comes to financing the purchase of a car, those who opt for a credit institution that is independent of the dealer usually benefit from a faster processing time. Accordingly, the desired amount of money is available to the borrower without a time delay. The borrower can act as a cash payer to the car dealer and take advantage of appropriate discounts. This option is not available if the car installment loan is taken out directly with the dealer or manufacturer. However, a comparison is also worthwhile here, because every now and then car dealers can come up with special offers.
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