contents
- With a loan for a new car
- Types of Loans
- bank loan
- Loans from dealers and manufacturers
- The path to credit
- Other financial ways to get the car you want
- Conclusion: For whom is a car loan useful?
With a loan for a new car
Some need it due to an accident, a defect that is too extensive or due to major problems at the TÜV a new car as soon as possible. Others have had a dream for a very specific car for a long time. And still others are expecting children and therefore need a larger family car. In all cases, the existing budget may not be sufficient. If you don’t want to hope for a lottery win at this point, you need other help – Assistance in the form of funding. Especially when buying a car, there are a large number of providers who would like to help you with this financing. with credit and leasing There are two main ways to do this.
Types of Loans
Especially when it comes to the topic car loan there are again several possible ways, which we will take a look at. The loans differ first by the different lenders and then through further ramifications as far as the final handling of the car is concerned. But first things first.
bank loan
With the first type of credit, the path leads to your own house bank or to another conventional bank. There, too, there are many special offers aimed at future car buyers. But a “normal” loan can also serve its purpose here. After the usual credit check, the bank will grant you the loan in the best case. With the money you go to the dealer and buy the desired car. The advantage: it’s the best case scenario for the retailer like a cash purchase, which can bring you valuable discounts.
Within the bank loans we still have the distinction between earmarked and earmarked loans. at purposeless loans the bank more or less doesn’t care what the loan is used for. The main thing is that the borrower pays back his loan installments diligently and on time. At the earmarked credit it is clearly agreed that the money will be used for a specific car. The car serves as security. So if the installments cannot be repaid, the bank can take the car and resell it to pay off the loan.
Loans from dealers and manufacturers
As a special service, but also as a marketing measure Many car dealers and manufacturers grant loans themselves. This means that everything can be done under one roof and dealers can win new customers with special conditions. In order to have the right offer for absolutely every potential car buyer different types of credit to select.
installment loan
The first credit variant essentially works like a traditional bank loan. All the important cornerstones such as down payment, installments, interest and term are clearly defined from the start and then dealt with over the months and years. That brings in Maximum planning. Everyone involved knows what’s going on from start to finish. However, the monthly loan installments are slightly higher.
balloon financing
If you want to bet on lower rates first, or even have to, you can bet on one balloon financing To fall back on. However, this has a catch: The Final Rate. She waits like a big balloon at the end of the term. After the first pleasantly low rates – they can be up to 50% lower than the installment loan – then a heavy, financial hammer is often waiting. The car buyer must be prepared for this. In the end he stands out two possible ways.
The first way is the Final installment paid directly and the whole thing is closed. In the second way, the borrower must further credit for the final installment take up. This means further, often high interest rates and thus additional costs. In general, the balloon loan usually performs a little worse financially than the installment loan. Nevertheless, he can often score with the initially low rates.
Three Way Funding
the Three Way Funding is basically just a slight modification of balloon financing. Here, too, it goes first low monthly rates Come on. And here, too, comes the big end in the form of a big closing rate. At this point, however, the borrower has – nomen est omen – the Choice between three ways. In addition to the two ways of balloon credit, that is payment of the final installment or further creditthere is a possibility here returning the car to the dealer.
This variant is therefore ideal for those who want to pay low rates at the beginning and do not yet know whether they actually want to keep the car or change it. As with balloon financing, you pay for these opportunities financially in return.
The path to credit
If you want to finance your car with a loan, you first have to get it Convince lenders. After all, he definitely has no interest in giving his money or his car to someone who cannot pay his debts. Therefore, there is one first accurate credit check on plan. This includes corresponding proof of a regulated, sufficiently high income in the form of salary slips and employment contracts. After that, in Germany it’s all about them SCHUFA. With the necessary permission of the prospective borrower, the lender requests one SCHUFA information at. If the SCHUFA score meets the requirements and there are no negative entries, the lender usually gives green light. After all, you obviously haven’t accumulated any debts in the past and paid all installments or various monthly fees for mobile phone contracts etc. on time.
Other financial ways to get the car you want
The various car loans are not the only way to get the car you want.
cash purchase
The cheapest way without any interest is still the cash purchase. So if you are able to wait a little longer and still put enough money aside, you can make the purchase with one action and often still benefit from one or the other percent Cash Purchase Discounts.
leasing
Leasing is the great alternative to credit. The leasing bank buys the car and rents it out to the customer, so to speak lessee. This pays his rent after an agreed deposit in the form of monthly lease payments. At the end (similar to the balloon loan) a larger special payment is waiting. In most cases, the lessees return the car and lease another vehicle. With appropriate agreements, however, you can also rent the car for the remaining value that has not yet been paid definitely buy.
However, leasing ends up with more uncertain factors. Depending on the leasing variant, either the driven kilometers or the actual value compared to an initially agreed number of kilometers or an expected residual value. Here it can possible additional payments come. In addition, the lessee must pay for possible damage to the car, which has belonged to the lessor all along.
Rental subscription and co
As in so many other areas, the topic of cars has come up again and again in recent years completely new variants on the market. Rental subscriptions can be used for an exciting, short-term solution be. The monthly rental amounts are higher than the loan installments, but things like insurance & co are already included here. If you think about it more closely and realize that you don’t need your car that often, you could also think about options like car sharing think. New platforms are regularly added for this as well.
Conclusion: For whom is a car loan useful?
A car loan can help all those who urgently need a car but don’t have enough money to spare. He can also help those who would like to have a specific, different car and who want to can easily afford monthly installments. However, if you have financial problems anyway, you should think twice about whether it really has to be a particularly expensive car. In these cases, the lender would be suspicious of the creditworthiness anyway. However, if a car loan should make sense in principle, future car buyers will have a wide range of loans to choose from and should find the best possible financing for you be able.
