Car loan comparison

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In our car loan comparison, we compare the current interest rates of up to 21 loan providers. This is how you can quickly, safely and conveniently find a favorable loan for your car.
(updated: january 2022)

Partner banks (excerpt)

Whether it’s a new car or a used car, a youngtimer or an oldtimer – we show who offers the best interest rates. The car loan comparison is also suitable for the financing of motorcycles or mobile homes and can be easily carried out with our car calculator.

Content

Types of financing

How can I finance the purchase of a car? Here we present you the most common options.

The earmarked installment loan for car financing often offers the most favorable car loan interest rates. In addition, there are other financing models, such as z.B. Private leasing or 3-way financing.

Installment loan

Special-purpose installment loan granted by banks, credit brokers or via credit marketplaces. The interest rate on the loan and the monthly rate remain unchanged during the entire term of the loan. It is available as a used car loan and as a new car loan.

With our car loan calculator, you will receive the expected installments in euros after entering the net loan amount and the term.

Balloon loan/final installment loan

In essence, an installment loan, with or without down payment, constant very low monthly installments, but a very high final installment (balloon). The car loan with final installment is often offered as part of dealer financing, but is also available externally. The advantage lies in low monthly installments, disadvantages are high total costs due to the redemption backlog and that, due to the high residual amount, a follow-up financing for the car may be necessary.

Three-option financing (dealer or manufacturer financing)

Loan with monthly installments and a higher final payment, a down payment is required. The three options at the end of the term give the loan its name:

The borrower can make the high final payment and the vehicle is his own.
He decides to take out follow-up financing.
It returns the vehicle to the dealer in proper condition.

Balloon loans and 3-way financing are offered in addition to private leasing, primarily through dealers and manufacturers, respectively. Offered by car banks, while the loan for the car purchase can be applied for at any branch bank or direct bank as well as through credit agencies or credit marketplaces for the loan from private individuals.

5 tips for a favorable car loan

Apply for the best car loan with these 5 tips. Our comparison already brings some savings, but with these tricks, the car loan will be even cheaper.

Tip 1

Second borrower

A second borrower increases the creditworthiness immensely. Banks reward the lower risk of default with a favorable interest rate.
Perfect for married couples as they are liable for the partner anyway.

Tip 2

Do without residual debt insurance

Credit institutions are happy to arrange residual debt insurance. Here one should examine exactly the costs for the RSV, because these can reduce the credit fast around some 100 or even 1.Increase by 000 euros. Some insurance cases, such as unemployment, are also only covered after a certain deposit period and often limited to one year.

Tip 3

Keep the loan amount low

Prioritize your car purchase and negotiate the price to keep the required purchase amount, and therefore the loan amount, low.

Tip 4

Choose short terms

Long terms reduce the monthly rate and are therefore very popular. However, the total costs increase disproportionately, because

1. If the interest rates for long-term loans are higher than those for loans with a maximum term of 4-5 years.

2. If the residual debt is significantly higher for a long time, more interest will be charged.

Tip 5

Obtain several offers

Online banks in particular offer low-cost car loans.

Using our inquiry form, you can, for example, check the conditions for over 20 reputable banks inquiries. At the same time and with only one request.

You will already receive the first offers after a few minutes by email.

Online – fast& low-interest

Consumer loans, such as the car loan, are nowadays mainly concluded via the internet.

Many major national and international banks and savings banks have online branches with an extensive online offering. Furthermore, you can find online credit agencies without schufa.

If you are looking for an offer without a bank, you will find what you are looking for on the credit marketplaces for credit from private sources such as lendico or auxmoney. Our comparison takes into account the various providers of online car loans and thus opens up the right choice of loan for the different target groups.

What makes the car loan cheap

There are several factors that make cheap car loans favorable: compare, the purpose of use and negotiate as a cash payer.

Online loans for buying a car are characterized by a favorable interest rate and special conditions. This results from the fact that direct banks and online credit agencies save money through the online banking of the customers themselves and pass this advantage on to the customers.

The house banks of the renowned car manufacturers such as VW, audi, mercedes or Renault often offer favorable financing conditions. It should be noted, however, that the discounts available for cash payments are generally not available for merchant credit. In almost all cases, it is worth taking out a loan with a direct bank.

Intended use

The car loan is intended exclusively for the purchase of a vehicle. This earmarking guarantees favorable interest rates and flexible terms. However, the conditions vary from provider to provider, a car loan comparison quickly shows which car loan best meets your own requirements and prerequisites.

Buying a car: beware of this financing trap! Thousands of euros are at stake

many car dealerships advertise zero percent financing on new cars and young used cars. However, this is often only apparently cheap. If you choose a different financing option instead, you can save around 5 percent on your car purchase.save 000 euros. This is shown by calculations of the comparison portal verivox.

rebate beats financing

the catch in the car dealers’ appealing-sounding offer: "there is no such thing as genuine zero-percent financing", says verivox managing director oliver maier. "Zero-interest offers at the dealership are subsidized by the dealer or manufacturer to boost sales." there is nothing wrong with it for now. But since they already subsidize the financing, many dealers or manufacturers don’t want to give discounts on top of that. And at this point, the model falters.

If you pay cash, you can negotiate a substantial discount – and get a new car at a lower price.

An example

even if you negotiate a 4.85 percent cash discount at the dealership, you’ll have the same financing costs with a low-cost installment loan as with zero-percent financing. This means: as soon as your discount is above 4.85 percent, you save on the purchase by installment credit.

Cash discounts of more than 4.85 percent on new car purchases are by no means uncommon. The discounts offered by new car brokers on the internet are even higher: according to the center automotive research (CAR), they amount to prof. Ferdinand dudenhoffer the average dealer discount here is currently 17.9 percent.

This calculation shows the savings potential

On average, car buyers spend 36.340 euros for their new car, the average online discount is 17.9 percent (see above). This is what they pay with each financing model:

With zero-percent financing without discount 36.340 euros
With installment credit and 4.85 percent discount as well 36.340 euros – discount and interest cancel each other out
With installment credit and 17.9 percent online discount 31.355 euro

In the third variant, you can save exactly 4 percent with an installment loan.985 euro. to keep up, your local dealer would have to give you almost 14 percent off – on top of zero percent financing.

zero-percent financing without discount financing with installment loan and cash discount installment loan and purchase via new car agent

discount	/	4.85 percent	17.9 percent
purchase price	36.340 euro	34.579 euro	29.835 euro
term	60 months	60 months	60 months
effective interest rate	0,00 percent	1,99 percent	1.99 percent
total cost	36.340 euro	36.340 euro	31.355 euro

Banks give cheap car loans

"Because the vehicle is collateral, some banks grant car loans at a particularly favorable interest rate", says maier. He recommends the following procedure before buying: "negotiate the highest possible discount first, no matter if you buy online or from a dealer. then look for an independent loan with the best possible interest rate." this is the way to get the most out of your investment.

This is how it was calculated
an effective interest rate of 1.99 percent was used to calculate the financing costs – the most favorable fixed interest rate in the verivox car loan comparison. All of the bank’s customers receive this uniform interest rate.

balloon financing not recommended

Car buyers should also carefully examine so-called balloon financing. It promises very low monthly installments – but at the end of the term you have to make a high final installment.

Hidden cost advantage:here the e-car is much cheaper
Drastic increase:this is how expensive car insurance gets in old age
Three exceptions to rule:traffic light red! When can I still drive?

What’s more, the ongoing installment payments only partially cover the depreciation of the car. There are risks. "If paint damage or signs of use reduce the value of the car, it cannot always be sold at the price of the final installment", says maier. "Then the borrower has to pay more money out of his own pocket to pay back the loan. With a simple installment loan, the vehicle is fully paid off at the end of the term and belongs to you."

interest also accrues on the final installment over the entire term of the loan. This makes the balloon expensive.

A new car, an annual car or a young used- this is the dream of many car buyers. But you have to put some money on the table for this. This money is often not available at a moment’s notice, or even if the capital is available, it often makes more sense to let it work and use the resulting good credit rating for financing. When it comes to buying a car, a car loan is one of the most popular financing models, which is why in this guide on STERN.De take a closer look at the special loan for car purchase.

What is a car loan, what are its special features, what are its advantages and disadvantages, who offers it and what to look out for in a car loan? A car loan is a classic installment loan, but it is a special-purpose loan and can only be used for certain purposes. The car loan is offered by car dealers or car banks as well as by conventional credit institutions and does not differ from a conventional installment loan in terms of the general conditions. The only difference between a car loan and other installment loans is that it is earmarked for a specific purpose. The loan amount taken out via the car loan may only be used for the purchase of a car, and in some cases the lenders exclude other vehicles such as mobile homes.

For many people, buying a car is one of the biggest investments in their lives, apart from buying a house. A favorable car loan is correspondingly important, because with large sums even small differences in interest rates mean high cost savings. Our comparison calculator will help you find the most favorable loan for buying a car. Often the car loans in the STERN.De-autokredit comparison significantly cheaper than the offers of the dealers. This often applies even in the case of zero-percent financing.

Cheap car loan: these options are available

A car loan is a special form of installment loan. you can use any regular personal loan to buy a car. Mostly special car loans are more favorable. Because your car serves as collateral for the bank in the event that you are unable to pay the installments. They can have it foreclosed if they do not pay properly repay.

Often, therefore, the vehicle registration document (registration certificate part II) must be deposited with the bank. Some credit institutions such as ING (until 2019 ING-diba) do without this deposit. Nevertheless, the car can be collected by the bank.

Dealer, bank or online?

If you buy your car at the dealer, you will often be offered a car loan there. Virtually all major manufacturers have set up their own car banks for this purpose. However, these companies usually only finance vehicles of their own brand usually only if you buy the vehicle through a dealer. In addition, these offers are not always the cheapest.

Loan type definition

installment loan

non-tied, classic loan with fixed or variable interest rate and regular repayments.

Most branch banks and savings banks offer car loans. This has the advantage that a personal contact person is available to help you. As a rule, an online loan is more favorable. Especially since you can easily compare the offers of many banks via the internet in the car loan calculator.

Car loans from independent banks can usually also be used to buy a used car from a private buyer. You can also use it to finance a motorcycle, a camper van or another vehicle.

The table summarizes the most common lenders for a car loan:

lendersspecial features and conditions

house bank or other branch bank

Most people consider their house bank or another branch bank to be particularly trustworthy lenders. Here you will usually get a solid loan for the purchase of a car and benefit from the cash discount on the purchase.

Tip: check the cash discount!

many dealers offer car buyers zero-percent financing. Even the best car loan can’t undercut this discount. However, car buyers must look carefully. You often receive an attractive discount as a cash payer.

If you forego financing, you can often get a discount of 3 to 5 percent. A zero-percent financing can quickly be more expensive than a favorable car loan. In our car loan calculator, favorable offers are available for less than 2.0 percent interest per year. Although buyers must take into account that the interest is payable annually, the purchase price discount is only payable once. Interest is only ever paid on the remaining debt; the discount, on the other hand, is applied to the full purchase price. In addition, you often do not have to finance the entire price of the vehicle with a loan. Even with a term of 3 to 4 years, the car loan can therefore be the more favorable option.

To compare the cost savings of the cash rebate and the car loan, it is worthwhile to look at the framework data in our car loan comparison on STERN.De to enter. The monthly instalment multiplied by the term of the loan gives the total cost. These must be lower than the sales price without a cash discount.

Three-option financing: be careful with the final installment!

In addition to the earmarking, there are differences in the type of financing for the car loan. ÜUsually they pay a part of the purchase price directly. However, the full purchase price can be covered by a loan.

Car dealers in particular often offer balloon financing, also known as a car loan with a final installment. Because a down payment is usually made, this is referred to as three-way financing, since the financing consists of the components cash payment, installment loan and final installment.

At the end of the term, customers can decide whether to buy the vehicle by paying the final installment or opt for follow-up financing. Many dealers also offer the option of returning the vehicle. Financing is therefore similar to leasing.

The table shows an overview of both types of car loan financing:

loan type definition

classic car loan

the classic car loan is an installment loan for a specific purpose and is linked to monthly or other regular repayments. It can be paid off either as an annuity loan over the entire term or as an installment loan with constant installments.

Three-way financing

the great advantage of three-way financing is the low monthly installments that are incurred with this type of financing. In return, however, there is a high final installment at the end, which often accounts for more than half of the loan amount. The installments paid consist primarily of interest and compensate at most for the loss in value of the vehicle over its term. Often, this value compensation is also achieved by means of a down payment.

Requirements for the car loan

As with all loans, car loans are subject to these three important requirements:

the borrower must be at least 18 years old.
you must prove your permanent residence in germany.
The borrower must have a regular income and a sufficient credit rating.

The age limit of 18 years is prescribed by law, there is no exception. A sufficient credit rating and a regular income are also almost indispensable, because otherwise the banks fear that you will not repay your car loan. In principle, lenders are a bit more generous with loans for a car because the vehicle serves as collateral. You will not completely forego a realistic prospect of repayment.

Another prerequisite is often the willingness to deposit the vehicle registration document (part II of the registration certificate) with the bank. However, some banks do not require this deposit in order to reduce their administrative costs.

A loan for the car what is allowed?

The car loan is subject to a more or less strict limitation and thus serves solely for the financing of the vehicle. But what counts as a car? Which vehicles may be purchased with the car credit? these questions are usually clarified in the loan agreement, and it is not always necessarily a car that may be purchased with the loan amount borrowed, but it can also be a motorcycle or a mobile home, for example. Other lenders, on the other hand, work with tighter restrictions, and especially when financing is not provided by a conventional bank, but by a car bank or the dealer, very tight conditions apply and the loan can usually only be used for the purchase of a specific vehicle brand or even only for an individual vehicle. This clearly distinguishes the auto loan from a free, non-earmarked installment loan, where the loan amount borrowed is at the borrower’s free disposal.

But why is there a distinction between free loans and earmarked loans, and what are the advantages of using a car loan instead of a free loan for buying a car? For the bank it can be a certain security if they know, what the borrower uses the borrowed money for. Here we are working with a term that originally comes from the insurance industry, the so-called moral hazard. If the borrower uses the borrowed money for a specific purpose, for example to finance a car, this represents a greater security for the bank than if the borrower gambles away the money borrowed in a free loan, to put it bluntly, in the casino and thus risks house and home.

And even though almost every loan application asks for the purpose of the money and this is also entered in the loan agreement, the bank only has the handle to actually check this in the case of a earmarked loan, i.e. the borrower must actually prove what he has spent the money on. If a car is purchased with a special-purpose loan, it often also serves as collateral and some banks retain the registration certificate part II, the former vehicle title, until the loan is paid off, in order to be able to access the car in the event of payment difficulties.

car loan comparison: five steps to a car loan

A car loan is easy to find in five steps via the STERN.Apply for a car loan comparison.

1. step: enter data into the car loan calculator

At the beginning of this page is the free car loan calculator. He is looking for the best car loan, whether for a family vehicle, a sports car, a motorcycle or a mobile home. It also doesn’t matter whether the car is new or used and is bought from a dealer or privately. Possible loan amounts from 500 to 100.000 euros and terms from one to 10 years.

First of all, two pieces of information are necessary, namely

The loan amount and
The term.

The loan amount is calculated from the purchase price of the vehicle minus the available equity capital. It does not hurt to leave some money in the call money account for emergencies. But it should not be too much. It is cheaper to finance an unforeseen expense with a new installment loan than to leave too much money in the account without interest or almost without interest. ON STARS.You will find offers for small loans starting from a loan amount of 1.000 euro.

You should choose a term that allows you to easily finance the monthly installments, but still pay off the loan as quickly as possible. Furthermore, the repayment must be higher than the depreciation of the vehicle.

The amount of the installments automatically results from these two data, because three-way financing is not recommended due to the many disadvantages in the STERN.De-car loan comparison not offered. The intended use "new/used car is already preset and does not need to be changed.

2. Step: preselection of the provider

The STar.De-autokredit calculator shows the most favorable offers and the monthly rate. If the payment is too high, the comparison can be restarted with a longer term. If you are sure you can pay a little more, you can choose a lower term and thus higher installments.

Then you have to choose the best offer. Three things are particularly important:

1. A low effective annual interest rate
2. The possibility of an installment break
3. Free unscheduled repayments

When comparing car loan interest rates, it is important to know that most loans are based on creditworthiness. This means that an applicant with a secure and high income and few debts has to pay less than another borrower who earns less and has more debts. The 2/3 interest rate provides a rough guide to the actual interest level. This is the interest rate that two out of three borrowers pay at most (see question 3 in the Q&A).

You will only find out the final interest rate at the end of the application process. However, there is no obligation to accept the credit offer. If the interest rate is higher than expected, you can submit an application to another bank. Some credit institutions, such as DKB, ING or the Allgemeine Beamten Bank, offer all customers the same interest rate; TARGOBANK does so, at least for car loans.

In addition to the price, the general conditions are important. You can save a lot of money with free unscheduled repayments. Every euro repaid early not only saves interest, the opportunity motivates you to spend less money. Installment breaks can also be useful. If more money is needed in a month, for example because the washing machine has broken down, an installment can be suspended. It is cheaper than a dispo loan.

3. Step: the actual credit application

With one click on "continue the actual application is opened. First, you specify the number of borrowers. It is particularly worthwhile for couples to take out a loan together. Then both borrowers are liable for the loan. This improves the credit rating. Above all, self-employed people or those on low incomes should get their partner on board. This increases the prospect of favorable credit conditions. But other people can also be second borrowers, for example parents. For this, simply "two people" first and then select "other relationship.

Click on "next" and then öAnother input mask opens up. In this and the next section, you must enter further personal data such as place of residence and age, as well as information on the size of the household and property ownership. In addition, information about the employer and income must be provided. Information on regular expenses for insurance or rent is also necessary.

These steps are the same as taking out a regular installment loan. For the car loan comparison, you must also enter information about the vehicle. Because, as you know, this serves as security for the bank.

4. Step: determine insurance coverage

ÜThe car loan calculator can also be used to take out residual debt insurance. It takes over the installments if a predefined event occurs. In total, there are four different levels of cover, namely

No residual debt insurance
Payment in the event of death
Payment in the event of death or incapacity
Payment in the event of death, disability or unemployment

stiftung warentest considers residual debt insurance to be mostly superfluous for low loan amounts. Especially since many risks are already covered by existing statutory or private insurance policies.

For single people, the residual debt insurance that is always included in the package is a disadvantage in the event of death. This protection is only useful to cover dependents. However, if the death of a wage earner, disability or unemployment would jeopardize the repayment, insurance is a good option. This also applies if you have a high need for security.

5. Step: find out the car loan interest rates and complete the application

Now the time of disbursement is still to be determined. The car loan can be disbursed either at the fastest possible time or at a fixed date. In addition, a concrete offer is submitted. Here you can find out the actual interest rate, which may be higher than the most favorable interest rate displayed in the car loan comparison. Alternatives are displayed in parallel to the selected provider in case the selected bank does not offer the best car loan after all. Now you can still change your mind and download the application for another loan.

The application must be printed out and signed. In addition, you must confirm your identity either in a post office or online via the videoident procedure. For this you should have an identity card ready.

Depending on your choice, the money will be transferred to the specified account either at the next possible time or on the selected date.

3 questions and answers about the car loan comparison

Is there a car loan without SCHUFA??

The car loans in STERN.De autokredit comparison require a SCHUFA information. This is also in the interest of the applicant. In principle, a sufficient credit rating is a prerequisite for car loans without SCHUFA. It is only checked without access to the SCHUFA data. Often, the lenders are foreign banks that have developed their own credit checks.

What is the effective annual interest rate?

Interest is charged on most installment loans- these include car loans- calculated on a monthly basis. The stated target interest rate is divided by twelve. If you take out a loan with an interest rate of 6.0 percent per annum, you will actually pay 0.5 percent interest per month. Due to the compound interest effect, the effective interest charge is slightly higher than 6.0 percent. This is taken into account in the effective annual interest rate.

If the conclusion of a residual debt insurance is obligatory, the costs of this insurance must also be included in the annual percentage rate of charge.

What is the 2/3 interest rate?

Often, only a few customers receive the most favorable interest rate indicated. Therefore, this value is usually not suitable for a realistic comparison. Loans with interest rates that are not dependent on creditworthiness are usually more expensive, but all customers really do receive this interest rate.

For this reason, the legislator has stipulated that banks must always publish the maximum annual percentage rate of charge paid by two out of three borrowers. A 2/3 interest rate of 5.0 percent means that two out of three loans are concluded with an interest rate of 5.0 percent or less.

However, the 2/3 rate also has its pitfalls. Only the credit agreements actually concluded are included in the calculation. If a bank generally rejects customers with a low credit rating (who usually pay high interest rates), this reduces the calculated 2/3 interest rate without making it more favorable for the remaining customers.

That is why STERN offers.De autokredit comparison at the end of the application always alternative offers. Their interest rate refers specifically to the individual case. Here a comparison is possible without any problems. Taking out a car loan that is not dependent on creditworthiness can also be an alternative.

Facts and figures about the car loan

A survey of 337 people conducted by the ARAL gas station chain in 2013 on car financing showed that more than half of all vehicles in Germany are financed at least in part through a car loan, namely 56 percent. A further 10 percent of vehicles were leased, while around a third (34 percent) were paid for in cash. Younger people in particular use financing; in the under-40 age group, 62 percent use a car loan.

According to data from the statistics portal statista from 2014, germans primarily take out a car loan when buying a new car. In the STERN.With 13.3 percent, car financing is the second most important purpose after loans for furniture and removals with 14.7 percent.

In its own statistical survey, Creditolo, as a credit intermediary, sees the car loan in fourth place among the most frequently applied for consumer loans in germany. It is particularly striking that with this type of loan, despite the often high disbursement sum, a car loan without schufa is approved at a rate of around 72 %. This is because the credit institution knows that the car loan is earmarked for a specific purpose, for which the money is used and the car itself serves as direct collateral to which the lender can fall back if a default occurs.