Cheap car loan in comparison – with immediate commitment

Buying a car with a car loan

Favorable car loan for car financing

Mobility is one of the most important criteria in today’s society. Without a car it is almost impossible. Since it is usually not possible to finance the purchase of a new vehicle with one’s own funds, a car loan is the best way to finance a car at a reasonable price.

To drive cheaply in the truest sense of the word, you should compare thoroughly. Car loans are offered by numerous house banks, but there are also very good conditions online.

Car loan comparison – with immediate commitment

Car loan advisor – tips for a favorable auto financing

The car loan offers car buyers the opportunity to conveniently finance the purchase price of the new vehicle. The car loan is a conventional installment loan, because the car loan is also repaid in fixed monthly installments. As with the installment loan, the rate is based on the loan amount and the term, which the borrower can specify individually
can determine.

Provider of the car loan

Today, the car loan can be concluded with almost all banks and savings banks. There for the Kfz financing just like with direct banks "normal" installment credits are offered, whose intended purpose is free. This means that the loan can be used to finance not only the purchase price of the vehicle, but also tuning parts, winter tires or other accessories.

For this loan without a fixed purpose, banks generally do not require any collateral, nor is it necessary to transfer ownership of the car as security.

Car banks

As an alternative to loans from banks and savings banks, car banks also offer car loans. These car banks work closely with car manufacturers and therefore specialize in financing cars. The conclusion of the contract with these car banks is possible directly with the dealer, who can then forward the application to the car bank and conclude the contract.

Here is the credit however earmarked and can be used exclusively as a car loan for financing the purchased vehicle. In addition, the car is considered security taken in. The vehicle title is only handed over to the buyer after full settlement of the loan debt.

Insurance for the financed car

As a rule, the bank granting the car loan will require that the financed car be insured with fully comprehensive insurance, provided that it has been deposited as security. However, the bank may not insist on a particular provider, so the customer has a free choice here. However, it makes sense to take out fully comprehensive insurance, especially for a new car, in order to avoid any risks.

Residual debt insurance

A residual debt insurance for a car loan, on the other hand, makes little sense, since the security provided by the handover of the vehicle title is usually sufficient. Nevertheless, some banks try to sell the residual debt insurance to the customer at a high price, as they receive commissions from the partner insurers.

If the customer nevertheless wants to insure the risk of loan default, he can alternatively switch to term life insurance or occupational disability insurance, which cover the same risks depending on the policy.

A comparison of car loan offers is worthwhile

There is no general answer to the question of whether a car loan from a car bank or a third-party bank is more favorable. Especially for new cars, the car banks often offer promotional interest rates, so that the financing here with 0% p.A. Possible is. Here, financing via a third-party bank can only be worthwhile if the dealer grants appropriate cash discounts. Such Subsidized car loans are offered by car banks, especially for new models, which are to be brought so faster to the buyers. This way, both the manufacturers and the buyers benefit.

Direct banks are better for used vehicles

In the case of financing used cars, on the other hand, third party banks, e.g.B. Direct banks on the internet, be significantly cheaper. Especially the car loan on the Internet offers the opportunity to save a few percentage points on the interest on the loan and thus save a few hundred euros during the term of the loan. In addition, it is also possible here, through the cash payment of the vehicle have a not inconsiderable impact on the discount and thus achieve up to 20% save on the purchase price.

Forms of the car loan

A car loan can be concluded in different variants. On the one hand, this is the classic installment loan, on the other hand, car buyers can also take out the balloon loan or the 3-way financing. Each of these options offers both advantages and disadvantages, which is why the conclusion should be well considered.

Car loan as a classic installment loan

If the car loan is taken out as a typical installment loan, the purchase price of the vehicle is financed in full, minus any down payment required. The monthly rate is calculated according to the purchase amount and the credit period. At the end of the term, the loan amount is repaid in full to the bank, so the borrower is debt-free. This type of loan is very suitable for car buyers who want to use their vehicle for a long time.

balloon financing – final installment credit

Alternatively, especially the car banks also offer the balloon or the final installment credit. With this loan, the purchase price for the vehicle is not financed in full, but a residual amount remains at the end of the term. This remainder, also known as the final installment, must then be paid in full at the end of the term. If it is not possible to pay the outstanding amount in full, many car banks also offer further financing of the loan amount. the interest for further financing is then agreed upon when the balloon loan expires.

Advantages of balloon financing with final installment

Since not the complete loan amount is financed, the balloon resp. The final installment loan has the advantage that the monthly installments are significantly lower than with the "classic" car loan, which is why this loan is especially worthwhile for people who have only a low income, but still want or need to drive a new car. However, the final installment must also be calculated at the end. If it cannot be paid in full, financing must continue, so that further interest costs are also incurred.

3-way financing

The third type of car loan is the 3-way financing. this aotokredit is also a balloon loan. At the end of the term of the car loan, the borrower then has three options as to how to proceed with the outstanding sum. On the one hand, as above, it is possible to pay the final installment in one sum, and further car financing can also be arranged.

As a third option, car banks also offer to take back the vehicle and use the proceeds to settle the loan. In this case, the car loan is comparable to leasing and is suitable mainly for people who want to drive a new car regularly.

Interest rates for car loans

The car loan is an important offer for the banks, because according to statistics, between 60-80% of all car buyers finance their new vehicle. So anyone offering a favorable car loan can secure the favor of customers.

For this reason, a car loan is often offered with lower interest rates than a classic installment loan. On average, the providers charge between 2-5% p.A. Only the special offers of the autobanks lure partly with even more favorable conditions. However, these are supported by the manufacturers in order to attract even more customers to such a new car.

However, the favorable interest rates on car loans can also be maintained because the loan is secured by the assignment of the vehicle as collateral (handing over the car title to the bank) and the risk of loan default is therefore lower.

Anyone who uses a "normal" installment loan for vehicle financing must therefore also pay standard interest rates of 3-7% p.A. Pay.

Security for the car loan

If the car loan is taken out with a car bank, they usually demand the transfer of ownership of the vehicle as security. In the case of a transfer of ownership by way of security, the car bank remains the owner of the vehicle, while the buyer is allowed to use the car and is also responsible for its security.

Sale of the car before repayment of the car loan

In order to prevent premature sale, the car title is retained by the car bank and returned only after full repayment of the loan. This of course has disadvantages in the case of premature sale, because without a vehicle registration document, a sale is not possible. Therefore, before the desired sale, borrowers must ask the bank to issuance of the vehicle registration document ask. However, this will often only be possible step by step with the transfer of the outstanding credit amount.

direct banks waive the hedge

Unlike car banks, direct banks often do not provide collateral for their car loans. You do not require a vehicle certificate, because the effort for the safety management is comparatively high for you. you give the car loan, but in blank. this, of course, gives the borrower much more freedom, because a early sale of the vehicle is possible at any time, even if the loan has not yet been fully repaid.

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Christina Cherry
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