In today’s world, it goes without saying that a car belongs to the household. It is not only needed to go on family trips or to go on vacation. Many consumers also need their car to be able to do work or get to work. Therefore, more than 3 million vehicles are newly registered in our country every year. imisite.org for a critique
However, many of these cars are not paid are financed with the help of a loan for a car. If you take a look at the purchase prices for the different vehicles, it’s no wonder. Because hardly anyone has saved the 20,000 USD for a new Golf or the 40,000 USD for a new Audi as savings.
So that a suitable loan for a motor vehicle can be found, it is not only important to have the best conditions for borrowing, but also to determine the best possible lender so that the financing does not become an unnecessarily expensive matter.we want to show you the possibilities that are available in this regard.
Find the right car with the right price-performance ratio
Before you can think about a loan for a car, you have to find a suitable car for the purchase. In this regard, the selection may be very extensive and perhaps also confusing. But most consumers know very well in advance what their new car should look like, who the manufacturer is, and which manufacturer the manufacturer wants. The only thing left to do is to find the right provider for the preferred model.
As a rule, the route always leads to the local dealer. There are many vehicles there that can also be used for a test drive. In addition, the price of the vehicle can be negotiated directly with the dealer.
However, if you take a look around the Internet, you will quickly see that there are many offers for buying a vehicle. Often even on significantly better terms than the dealers on site.
As a buyer, you have to think very carefully about where to buy the vehicle. With local dealers, where you can see what you get and where you can also use the workshop service and similar amenities, or with the online retailer, who may make a better price but is unfortunately not as the retailer before Place.
The type of financing
Once a suitable car has been found at the desired price, the financing can be considered.there are two different ways of doing this. On the installment loan from an independent bank and on the other the financing offers from the dealer.
Anyone who opts for the installment loan from the bank receives a loan for a vehicle that is not earmarked for a specific purpose. This means that the loan amount can be as high as desired. In addition, installment loans very rate. However, the biggest advantage of this type of financing can be found in the fact that the bank’s installment loan enables the dealer to pay in cash.
Many car dealers offer a generous discount if you pay for the newly purchased car in cash. This can save several thousand euros. So if you lend the money to the bank and then pay the car in cash to the dealer, you achieve a great financial advantage that the dealer’s financing offers hardly achieve.
The dealer only offers two options for financing a loan for a car, but they do not allow an additional discount. There is, on the one hand, balloon financing, in which there are small monthly installments and at the end of the term a high completion rate awaits the car owner. On the other hand, there is the so-called three-way financing, which also has small monthly installments and at the end of the term offers the opportunity to return the car, pay a large final installment or make a new loan agreement based on the outstanding balance.
We recommend taking out an installment loan or a car loan from an independent bank. The possibilities that result from this are better than the financing offers of the car dealerships and thus enable a cheap loan for a car on fair terms.
The requirements for a loan for a car
A loan is only granted in Germany if there is a good credit rating. This also applies to a vehicle. In addition to a positive Schufa, a good credit rating always includes a fixed income, a permanent residence in Germany and a minimum age of 18 years.
On top of that, you should come to terms with the fact that many banks and also car dealerships regard the car as security when it is financed. The vehicle registration document remains in the bank’s or dealership’s possession until the loan has been paid in full. Only then will the vehicle be completely transferred to the owner.