Every year, hundreds of thousands of households take out car financing to credit. It is often asked for loans sought from manufacturer-independent banks come. After all, this – according to a widespread view – offers the opportunity for extensive discounts. The cash payer always comes out on top. Too sweeping a statement may be made about the possibility of using car purchase to get away cheaper, are not considered.
In general, however, there is a chance to save. But: by choosing the wrong one car loan this advantage can vanish into thin air. What are we talking about?? In practice, pure car loans offered. Here the intended use is specified. On the other hand, any buyer can also choose to apply for a loan without earmarking. This variant is very flexible because the borrower does not have to give any account of the use made of it. But such loans can also turn out to be significantly more expensive.
The difference is that car loan by assignment as security collateralized. Means: on the part of the bank the financed vehicle used as collateral by retaining the vehicle title until it is paid off. In this way, better conditions can sometimes be achieved because the probability of default is reduced by the collateral and a lower risk of default results in lower interest rates means. The car loan with earmarking as special financing to leave them out would in any case be a wrong decision – which will show up later on.
Do not compare car loan offers
Households take a lot of time to travel or buy a new television set – and compare different offers. At topic car financing some households are much more careless about taking out loans. The dealer around the corner has the car you want and the matching financing in addition – where to sign? In practice, however:
- Purchase price
- Credit interest
- special conditions
Always be checked. It turns out that there are differences between car dealerships that offer the same brands and models. The latter concerns the purchase price as well as the option to negotiate a discount.
At loan interest rate Contractual dealers are usually bound by the banks’ specifications, but in practice. Nevertheless, should never be signed hastily. It is always worthwhile special financing from dealer to independent bank loan compare. The result can be quite surprising in some cases. In case of a credit sum of more than 20.000 euros, 0.5 percent is quite noticeable.
Unfortunately, it happens again and again that such facts are ignored. The money could be invested much more sensibly – for example, in additional equipment or a tank of gas.
Do not weigh all options
It has already been mentioned in error 2 – between dealer and bank finance there are sometimes very significant differences. Who wants his new car financing must keep several aspects in mind. The interest rate is an important aspect. But what about special conditions from – for example, early repayment? This point in particular offers potential for savings.
And there are several other aspects to consider. Banks may offer the more favorable loan. But the dealer offers an insurance package and maintenance as a bonus on top of that. Such aspects can help to save high three-digit to four-digit sums over the term of the loan. Any potential buyer who does not take this fact into account will end up making expensive mistakes.
How to weigh the different options? Not every consumer has the motivation, credit offers to be recalculated with calculator and pencil. No one has to. About internet calculator can be used with:
- Term
- loan interest rate
- Loan amount
It is very easy to calculate which offer is more profitable. Costs for inspection and insurance have to be bank loan of course still with financial advantage deducted – but only if the dealer actually offers this package.
Choose too low a repayment rate
A low rate – many car buyers are happy about this. Who can afford the car purchase however to debits a long term beautiful calculates, pays on it. This procedure only pays off with 0 percent financing. Caution: there are a number of special features to be taken into account with these, which are pointed out by the consumer advice center, for example. Low rates ultimately mean that repayment of the car loan in the long run. And with every month that borrower pays interest, the whole thing becomes more expensive.
A context that some households lose sight of. What ways are there to save on the rate anyway??
- down payment
making a down payment of a few thousand euros to the dealer reduces the loan amount – and thus the rate as well. An effect that is not achieved through the stretched repayment of the loan. Say the running time does not drag on too long. - trade-in
if you already own a car and are looking for a new one to drive, you can talk to the dealer about a trade-in of the old vehicle. This gives the opportunity to realize a few thousand euros, which are offset against the purchase price. The effect is similar to a down payment.
In principle, the term for the car loan should not be too long. Financing a property over 10 years – no question about it. With a car loan however, such a term is to be viewed critically. Many households buy more than one car in a decade.
Arrange residual debt insurance
The so-called residual debt or residual credit insurance actually pursues a positive objective. It is a matter of borrower with the conclusion of this policy to protect against the risk of non-payment. In practice, the RSV – as it is abbreviated – is often viewed critically. consumer rights organizations often even advise against taking out this policy.
But why is there so much criticism of this insurance?? On the one hand, the RSV does not adequately cover all possible risks. In the event of illness, for example, a clause may be included stating that the installments will only be covered for a limited period of time. On the other hand, even in the case of unemployment, often only a limited benefit is provided for. The bottom line is that many consumer experts consider many rates to be of limited practical use only. On the other hand residual credit insurance money. The contributions depend on the loan amount and will generally be the rate for the car loan added.
When it comes to RSV and car financing, there is an additional aspect. the bank has already secured – through the assignment of security – a pledge. This actually satisfies their need for security. In this case, additional insurance would be one thing above all: an expensive additional burden that makes the loan more expensive.
Conclusion: mistakes quickly make the car loan expensive
several million new cars are registered in germany every year. Even greater is the number of used cars. Acquisition cost of 20.000 euro or 30.000 euro hardly a household shakes itself simply from the hemdsarmel. On the contrary: many cars are now financed. manufacturer banks have a perceived advantage here.
Presence directly at the dealer automatically ensures "walk-in" customers. Households should always ask themselves whether the offers actually deliver what they promise. Just at the interest rate or the possibility of agreeing a discount with the dealer, the manufacturer-independent financing calculate. But leaving this completely out of the equation ends up being just one mistake potential buyers can make.