Car loan: suitable offers for new and used cars

Car loan: suitable offers for new and used cars

Car loan: suitable offers for new and used cars

The car is the German consumer’s favorite consumer good. In Germany, more than 56.5 million motor vehicles are registered (Source: Kraftfahrtbundesamt, as of January 2018). Whether as a status symbol, fun car or means for the (transport) purpose, the car is omnipresent.

Most people finance a new or used car through a loan. Special car loans are enjoying increasing popularity.

But what forms of car loan are there? What should I consider if I want to use a car loan?

If you want to find out how you can finance your new car, you will receive all the important information in this guide.

Key Facts: The most important information about car loan at a glance

Only a few can afford the car they want from their savings. One third of all vehicles are financed in Germany because of this – many of them via a car loan. The most important facts about car loan at a glance:

  • The car loan enables cheap financing of new or used vehicles
  • There are different types of car loan to meet different customer needs
  • Car loans can be implemented as a conventional installment loan, as balloon financing or very flexible as a three-way financing
  • Car loan from the house bank, a direct bank or from the Autobank
  • Make the car loan comparison online to save money
  • There are many comparison portals that compare the offers of many lenders
  • Use several comparison portals and get the cheapest car loan

What is a car loan?

Basically, the car loan can not be described as a separate form of credit. It is a traditional loan, but it is intended for a specific purpose.

The purpose is, as the name suggests, the financing of a car or – more generally – a motor vehicle.

It is possible with such loans, both New and used cars as well as Motorcycles and RVs to buy. However, there are various forms of car loan, which we now want to explain in more detail.

The different types of car loan at a glance

There are usually three different types of car loan. Depending on the lender, the following types of car loan are offered:

  • Car loan as conventional installment loan
  • Car loan as balloon financing
  • Car loan as a three-way financing

Many banks and other lenders, such as the largest German car club with its “ADAC car loan” offer a variety of car loans, so that you can customize your preferred loan to your individual financial requirements.

Car loan as conventional installment loan

If you want to finance your new vehicle with a classic installment loan, this is easily possible. You will receive a loan amount – if desired minus a down payment – with which the car is paid.

You will pay the same installments every month over the predetermined term. At the end of the term, the loan is fully repaid.

Car loan as balloon financing with final installment

Some lenders also allow balloon financing. Especially for auto banks, you will find this type of car loan.

Compared to the normal installment loan, the monthly rate is lower here. At the end of the repayment period, there is a final installment, which is a multiple of the monthly installment.

The closing rate must therefore also be calculated during the repayment term. If there is not enough capital to pay off the final installment, it will be necessary to re-finance it, which will incur further costs.

Car loan as a three-way financing

A three-way financing is a special form of car loan balloon credit. At the end of the repayment term you will be offered three options:

You can either pay the outstanding final installment, get a new financing for the final installment or return the vehicle. This “quasi-sale” of the car will pay off the final installment.

Which car loan type is suitable for me?

The type of car loan you choose depends on your financial situation and how it can be planned. In addition, the useful life of the car also plays a role.

If you want to keep the financed car long-term and want to be debt-free at the end of the repayment period, the car loan is the best choice as a conventional installment loan.

If you can not raise the rates, balloon financing may be an advantage as the monthly cost is lower. If you want to drive a new car after the repayment period, the three-way financing is suitable.

They give the car back and finance a new one. This variant is similar to the lease.

Benefits of Car Loan – Why is a car loan worthwhile??

Taking out a car loan has several advantages:

  • Favorable conditions
  • Short period until the approval
  • Often, special repayments are possible
  • Cash payment may allow discounts

Due to the security provided to the bank or financial services provider by the car, lenders are willing to award advantageous terms. They receive financing at favorable interest rates, so that the total interest charge is lower than for other loans.

In addition, the waiting period until your loan is approved, is relatively short. This is especially advantageous if you are short-term dependent on a new vehicle for work or pleasure.

You can also benefit from free special repayments with many providers. If you have more money left over than planned for the repayment, you can thus lower the interest burden even further.

Another not to be despised advantage is a discount when buying a car. Many dealers can negotiate a significant discount if you pay for the car in cash.

The cash payment is of course only possible if you do not get the car loan through the dealer or the Autobank, which cooperates with the dealer. If you take out a car loan from a direct bank or your house bank, you can have the sum paid out and make a cash payment when buying a car.

Are there any disadvantages with a car loan?

There are also disadvantages in car loans, but not in all forms of this financing. You may be limited because of the car loan:

  • Only usable for the purchase of a new or used vehicle
  • Restrictions on the eventual sale of the vehicle
  • Restrictions on a particular brand or model

The obvious purpose of the car loan on the purchase of a vehicle makes the car loan logically limited. Further restrictions apply if the bank retains the vehicle registration document as collateral.

Under certain circumstances, a sale of the vehicle is only possible when the loan is paid off.

If you want to take out a car loan from a car bank, you can only use this credit for models of the manufacturer represented by the Autobank. In addition, special conditions are sometimes offered only for certain models, so you are also limited in the selection of the vehicle.

However, these disadvantages are largely negligible, since the choice of the desired vehicle usually falls before the financing question.

You should pay attention to this with a car loan

When looking for a car loan, there are a few things you should keep in mind. This helps especially to save money. In advance you should be aware of your financial situation.

That concerns your creditworthiness and your income situation. For example, what monthly rate can you afford without running into financial shortages??

Schufa query on car loan

You should also take into account that your Schufa score will be checked on a loan application. Your credit rating should be sufficient for you to be granted the loan.

A Schufa score of 95 or more is a good prerequisite. You can request your Schufa entry once a year at the Schufa by means of a self-assessment.

The better your credit rating, the better the terms offered by the banks.

But you also get the chance, with negative entries at the Schufa, that your car loan will be granted. Some banks attach more importance to a credit check in the form of a regular income from a long-term, permanent employment.

For special hardship a small loan is the last resort despite Schufa. The small loan amounts, however, do not allow for big jumps in car selection.

The terms of the car loan

Furthermore, of course, the loan terms to consider. The costs are composed of different parameters. In any case, you should take a closer look at the following parameters:

  • Total loan amount
  • Effective interest rate
  • running time
  • Avoid unnecessary supplementary insurance

From these four fundamental parameters of a loan, the credit costs are composed. The amount of the loan and the term together with the APR determine the monthly installments and the total interest charge.

If the car is more expensive, of course, the loan amount increases. Most of the time you have to put up with a longer term to cover the monthly costs. As a result, however, the interest burden increases again.

Using the APR, you can compare the cost of a loan very well with other offers. This interest rate includes all costs for the loan, including bank charges, the installment payment agreement, etc..

The borrowing rate, also known as the nominal interest rate, only indicates the actual interest rate on the loan amount. Since the fees differ and there is not always the same method of payment of the installments, the effective interest rates may vary depending on the provider with the same borrowing rate.

Remaining debt insurance for car loan

When concluding a car loan, it should be noted that no unnecessary supplementary insurance is part of the loan agreement. These are not included in the annual percentage rate, but usually drive the borrowing costs unnecessarily high.

First and foremost here is the residual debt insurance. Many car loans include the residual debt insurance as a prerequisite or the option of an additional degree.

However, benefits – assumption of sickness, unemployment or death benefits – are only valid under strict conditions. In any case, look at the clauses on residual debt insurance.

Mostly you can do without it and secure more favorable conditions.

Furthermore, the vehicle registration is a deciding factor in car loan. If you really want to be the owner of the vehicle, you must make sure that the bank does not keep the vehicle registration document as collateral.

On the one hand, this gives you the feeling that it is actually your car. On the other hand, you are free to decide when you sell the vehicle; This is possible even if the loan is still running.

Car banks usually keep the vehicle registration when financing. For other lenders such as direct banks, this may look different.

Compare car loan online

Because of the many differences that can be seen with a car loan, a comparison of offers is essential. Only then can you secure low interest rates and save on credit costs.

An online comparison of car loans gives you the fastest overview of current offers and conditions. Comparing the car loan online offers several advantages:

  • Quick comparison of car loans at any time
  • No appointment needed
  • Large selection of providers
  • Fast processing time
  • Credit comparison and advice are usually free

Of course you can carry out the car loan comparison around the clock. Likewise, the application is possible at any time.

Since you do not need an appointment with a bank consultant, you also save additional time. Anyway, the processing time for an online car loan is short.

If you need help, many of the comparison portals also offer advice. So you also have a personal contact person if questions or problems arise.

There are no costs for these services. The comparison portals earn your commissions on successful deals.

During the comparison, you should therefore use several comparison portals. For example, if you only compare car loans through a portal like Check24, you will not be able to see all the offers available on the market.

Logically, most banks and financial service providers do not have a business relationship with all comparison portals. Using multiple portals to compare car loans gives you a better chance of benefiting from the cheapest interest rates!

Compare car loan online: step by step

For you that means little effort. Comparing car loans online is very easy. There are only a few parameters you need to enter or select:

  • The amount of the loan,
  • The term and
  • Possibly. the purpose of usage.

Then let the car loan calculator calculate the available offers. You get an overview with the best interest rates and the monthly rate.

You can also see more information about the tariffs of individual offers.

However, these are the possible conditions. The actual amount of interest you receive depends on your credit rating.

Therefore, check interesting offers from several comparison portals on the important parameters such as terms, fees and special repayment options. Once you have decided on a provider, you can apply for the car loan.

Apply for a car loan online: step by step

The application of the vehicle loan also succeeds in a few steps and does not require much more from you than to provide your personal data.

However, compared to the application for other types of credit, you still have to prove with the vehicle loan that you have also used the loan amount paid to purchase a vehicle. And so goes the process:

First, apply for a car loan online

In the beginning, it is not necessary to enter your personal data in the application form.

  1. Enter your contact details (name, date of birth, telephone number, e-mail address) in the provided fields.
  2. In this case, select the purpose “Car Loan” when various loans are offered.
  3. If necessary, hire a second borrower or guarantor to improve your chances of getting a car loan.
  4. Choose the offer that best suits your needs.

Second, compare loan offers and fill out the contract

Next, you should check the various car loan offers and apply for your preferred loan.

  1. Apply for a non-binding credit agreement.
  2. Read the loan agreement carefully.
  3. Fill out and print out the loan application
  4. confirm your identity.
  5. Sign the loan application and send it along with the required documents to the bank.

Banks usually offer two methods of confirming identity: PostIdent and VideoIdent. In the procedure of the post office your identity in a post office branch is confirmed.

On this occasion, you can immediately submit the loan application. As an alternative to PostIdent, many banks offer the VideoIdent process, which identifies your identity to a bank employee.

However, you usually have to send the documents by post. Both versions require an identity card or passport.

Third, get money and buy vehicle

After the loan approval, there is not much left to do. You will receive the money after a short while and can now buy the desired vehicle for sale.

You must prove this by means of a purchase contract and a vehicle registration document.

  1. Your money will be transferred within a short time and you can buy your dream car.
  2. The purchase of the vehicle you have to prove due to the earmarking of the car loan. Please send the purchase contract and the vehicle registration document to the lender within six weeks.
    Keep in mind, however, that the period of time during which you must purchase the vehicle may sometimes vary from lender to lender.

To put the loan application online, no great effort to schedule. The bulk of the work is the collection of inputs and expenses and other necessary documents such as salary statements, etc.

But these things have to be done on every loan. Until the signature and return of the loan agreement, the loan request remains non-binding.

The rest of the process is quick and straightforward. This also applies to the verification of personal data or the receipt of the car purchase.

Which documents do I need??

In addition to your identity, the lender needs more details to approve the car loan. Therefore, you should have the following documents and information ready:

  • Overview of income and expenditure
  • Proof of income through payroll
  • Documents about the vehicle

Using the statement of income and expenses, the lender learns that you have enough free capital.

The salary statements insure the future revenues, allowing the bank to calculate the risk. If you have all the documents together, you can submit the loan application.

Car financing for new cars – leasing or autobank?

If you have a new car in mind, in addition to the car loans, an alternative form of financing is available: the leasing. With the private leasing of a new car, however, you only acquire the right to use the car.

The dealer remains the owner of the vehicle and charges the monthly leasing rate for an agreed period. After the end of the term, the vehicle goes back into the possession of the dealer.

Actually created for companies, this form of car financing is also very popular with some private individuals.

The possibility of simply returning the car after the end of the lease can be convincing. However, the monthly installments are often higher than the loan installment.

In addition, damage to the vehicle and high mileage affect the residual value of the car. This increases the costs additionally.

As a better alternative, therefore, offers the financing of the new car on a car bank. Car banks are financial service providers affiliated to dealers who belong to the automakers.

For their models, the special car banks often offer cheap financing. Zero-percentage financing is also possible as manufacturers subsidize these loans to boost sales.

In addition, the direct connection from the dealer to the auto bank means less work because you do not have to worry about financing separately.

In addition to these favorable conditions, auto banks offer the popular three-way financing. This also accommodates low earners, who can only raise capital for smaller installments.

At the end, the final rate is waiting or the car will be returned. This is similar to leasing, and if you are looking for such a model, you should compare the cost of the two alternatives. Otherwise, the possibility of follow-up financing remains.

Take advantage of the Autobank, but you can not – as with an installment loan – benefit from a discount for a cash payment. Depending on the value of the car, many dealers can get a discount of a few thousand euros.

This savings are eliminated, but are often offset by the favorable conditions at the car bank. Calculate here, too, which financing is cheaper in your case.

Car financing for used cars

The financing of used cars is often handled by house banks or direct banks. House banks such as Deutsche Bank or Sparkassen can be reached via the branches and can get advice from a local contact person.

Of course, this has the advantage for you that you will be accompanied personally at every step. So here is the personal customer loyalty a proper say.

So if you value it, you should at least get advice from the house bank and make a condition request. In this way, you can additionally include the offer of the house bank in the comparison.

In any case, however, you should use comparison portals or comparison computers from the internet. As we have shown, the online comparison of car loans has many advantages.

The offers of direct banks are often better because you do not operate a branch network. The saved costs are also reflected in the interest rate for the borrowers.

The processing of the loan application to the payment of the loan amount usually also succeeds very quickly.

You may not be granted credit at the house bank. In such a case direct banks can also join.

The financial service providers have their own internal specifications, which requirements the customers have to meet in terms of creditworthiness. The loan cancellation from your house bank does not have to mean the end of the car dream.

On the following comparison portals you may find the right bank that grants you a cheap car loan:

The large comparison provider Smava also offers cheap car loans. In addition to the classic installment loan and the possibility of rescheduling, Smava offers a good starting point with the car loan comparison.


The large comparison portal is also broadly based on loans. Loans for new cars, used vehicles and motorcycles therefore also belong to the offer comparison. So it is not surprising that Check24 is one of the largest brokers of motor vehicles in Germany.


In addition to mortgage lending and conventional rates Finanzcheck also offers a comparison of car loans. Again, you have the option to request a loan for a new or used car when choosing the intended use.


Verivox, the comparison portal of the ProSiebenSat.1 Group, also offers a comparison of loans for cars and motorcycles. The repayment term can be adapted to your situation – up to ten years are possible.

The cost of car loans can also compare with The German comparison portal provides the widest range of industries and products in our overview, but it also knows the slightest specialization.


Biallo is similar. Not only do you have the ability to compare car loans and other loans, you also have a wide range of insurance, investments and utilities for electricity, gas and telephony.


You can also start various loan comparisons on the comparison portal Financescout24. The portal works with many financial service providers for new and used cars. If you need car insurance, you can also compare offers from many insurers about Financescout24.

Car loan – cheap finance with the online comparison and fulfill car dream

Only if you compare a variety of car loan offers, you can meet with the cheapest credit your car dream. It does not matter if you need a car loan for a new car or a used car.

If you compare car loans online and make the loan application to a direct bank, this is not associated with much effort.

It is considerably more exhausting when you compare different offers from house banks. However, personal advice – which for many is the decisive criterion for each house bank – is often an option.

The Autobank opens up a third option for buyers. Here you get the car and the financing almost from one source.

Favorable interest rates are offered thanks to the proximity to the manufacturer, which subsidizes the sale of their models with rebates. Which option you choose depends on your preferences and circumstances.

If you follow the tips from this guide to car loan, you can finance your new car in any case cheap.

FAQ: Car loan – the most important questions answered quickly

Who can take out a car loan?

The hurdles on the way to car loans are not very high. Basically, anyone can apply for a car loan from German financial service providers who:

  • Is of legal age,
  • Has his residence in Germany,
  • About the necessary creditworthiness has or.
  • Has a regular income.

Where can I get a car loan??

There are usually three contact points for a car loan:

  • The house bank
  • The Autobank
  • The online bank or direct bank

What do I have to consider when choosing a loan??

The most important criteria for credit selection are:

  • The annual percentage rate,
  • The amount of the loan,
  • the period,
  • No unnecessary supplementary insurance and
  • Possibly. free possibility of special repayment.

What collateral is required for car loan?

Traditional banks and direct banks generally do not need any additional collateral. Here, a good credit rating and regular income are sufficient.

A car bank, however, usually retains the vehicle registration as a security. The car will not become your property until the debt has been completely repaid.

Do I have to make a down payment on a car loan??

The house bank or direct banks do not require a down payment. You will receive the full loan amount and can pay for the car purchase. For auto banks, however, usually a down payment is due.

Can the car loan also be used for used cars?

Car loans can also be used for used cars and not just for new cars. However, when comparing online car loans, you should be careful to select used cars as their intended purpose.

The conditions can vary. In addition, many banks and lenders decide how old the car may be. You should read carefully the conditions to clarify this in each case.

Leasing or Car Loan: What is the better alternative?

Private leasing does not give you tax benefits. However, the monthly installments are often higher than a loan, so you should consider a car loan.

With a three-way financing, you also have the option to return the car at the end of the term. Compare these offers with the leasing offers to determine the cheaper method.

Which car loan types are there?

As a rule, one differentiates between the following forms of car loan:

  • Car loan as installment loan
  • Car loan as balloon financing with higher final installment at maturity
  • Car loan as a three-way financing, with the ability to pay off the final installment directly, to finance the final installment or to return the car

Is there a possibility for special repayment in car loan?

Whether special repayments are possible or not depends on the lender. Many banks and financial service providers also allow for special loan repayments for car loans.

Are there car loans despite negative Schufa?

Even with bad entries at the Schufa you can sometimes get a car loan. However, the prerequisite is that you have a sufficient and regular income. Many direct banks, which are provided through the comparison portals, place less value on the Schufa score than on disposable income.

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