Not only in the case of a new car purchase is good advice for many consumers expensive and car loan often the only viable solution. For even a small car is often associated with a purchase price in the five-digit range. With a normal income, such expenditures are hardly bearable, especially since the running costs naturally also continue to accumulate and must be borne. A car loan is no different than an earmarked installment loan .
A car loan is therefore usually the best chance for financing – by the way, even in a used car.
Car purchase without credit hardly possible
Financed car will be picked up
Even a well maintained car has to be replaced at some point, even if some owners like to postpone this idea. Often it comes then to the acute need, if you least expect it and the funds for a new vehicle missing. The financial requirements for the car purchase are high. Many households can not save money to buy a new (used) car. This problem is not only known to people with low incomes, even with an average salary, the car purchase is not readily feasible. Of course, the desire of the vehicle decides what the chances are with the financing and what capital needs result from the planned purchase.
Car loan from the car manufacturer or car dealership
Blanket statements can also hardly be formulated, especially in the field of car loans. However, experience shows that the average car loan from the manufacturer or a partner bank is not always the ideal variant of vehicle financing . The house banks of the providers are not always the cheapest, so you should definitely make a credit comparison, rather than hastily accept the first offer. Although car dealers are happy to recommend their partner banks, but sometimes rather because of the commissions that wave for the brokerage of new borrowers. However, the recommendation should not be misunderstood as the only way. If I find a cheaper lending model elsewhere, it must also be recognized for funding.
→ Ask not only the house bank for an individual loan offer!
Home bank loans can offer cheap car finance
The gang only long-standing house bank is close, but is not always promising. Nevertheless, an offer from this body for the car loan and the further comparison can be a first reference in order to have a basis for orientation in the first place. The advantage of personal advice at the house bank or another branch bank is that in the course of a negotiation a certain amount of leeway can be exhausted for the total cost of car loans. It has a positive effect if you can already present favorable offers from other financiers in such loan talks. So the bank may prove to be negotiable.
Car cash payment?
A point that speaks against lending from the manufacturer or the house bank of the dealership, is unfortunately not aware of many consumers around the car purchase. If you finance the vehicle with the involvement of the seller, you take the opportunity to benefit from discounts for cash. And the discounts that you can secure by paying in cash often go far beyond normal discount offers of 3.00% (for new cars). If I finance through the car bank, funds flow directly to the provider. Up to 20 percent, so the experience of many car buyers, are possible as a discount, if the new vehicle (or a younger used) paid in cash. With a retail price of 30,000 euros for a brand new car, you can save up to 6,000 euros.
Even if you pay only 10 percent less, you save a few thousand euros on car loan. Of course, this assumes that you have found a car loan that is suitable and affordable for your situation. The exact extent of the discounts always depends on your skill in the sales pitch. If one takes the ideal case of the 20 percent rebate and the price advantages which borrowers can secure through a digital credit comparison, it quickly becomes clear how significant the savings potential actually is.
Are car loans suitable for every vehicle?
If you are looking for an affordable, low-lending annual car loan online, you will find that many car loans are for new cars only. Other offers are then only for used cars. Still other loans are quite flexible and even allow you to buy a motorcycle and other vehicles. Here it is important to look carefully and in case of doubt to contact the customer service of potential financiers before an application is made. Some loan offer will fall out of the comparison, if you have special requests. Friends of classic cars will find on the market with a bit of luck separate financing offers whose providers are specifically addressed to this circle of customers. While in new cars, list and selling prices largely define the amount of credit, in the case of used cars, the “slack list” etc are summarized according to age, mileage and other details.
Car loan from the family as a cheap option?
Whether the borrowing of friends and acquaintances or relatives is now considered suitable on the basis of the additional emotional level is a question that every borrower has to answer in person. Of course, it can be a burden on the personal relationship when loans are not repaid as agreed, because unexpectedly high expenses are pending. On the other hand, parents, grandparents or good friends are often more patient than banks, which will threaten to terminate the car loan contract after two or three installment failures in a row, so that a full repayment in one fell swoop may be required. Not infrequently, insolvency can then lead to personal bankruptcy. Your own parents are more likely to talk about this when it comes to temporary deferrals or payment breaks and monthly rate adjustments.
If I can get a car loan within the family, it should not be waived on a written fixation of all details. If larger sums are lent and, for example, these payments are incurred by the responsible tax office without the existence of a reliable credit agreement, the loan can in the worst case be considered a donation. This can have detrimental consequences for both the lender and the borrower. Especially: Loans can be claimed by the recipient of the funds for tax purposes. Why should not this be exploited when car loan from the family also?
As with a normal car loan from a bank, all important information in the loan agreement. These data are:
- Names of the donors and recipients
- loan amounts
- Duration of car loans
- the amount of the annual effective interest rate
- the amount of the monthly loan and the repayment
- Agreements on possible payment breaks or deferrals
- Details on special repayments or premature repayment
Even though many personal loans are granted in practice as interest-free loans, all the important framework conditions should nevertheless be laid down in a contract.
Which financing ways exist as a car loan?
For the sake of completeness we would like to briefly list here a list, which calls all possibilities, in order to receive a car loan. The models are:
- Personal loans (family, friends, etc.)
- virtual credit intermediaries such as SMAVA or auxmoney (P2P platforms)
- Direct banks that only operate on the Internet
- the normal house bank
- Automobile banks, as they operate a number of manufacturers
- Placement portals, some of which present a three-digit selection
If you look at this overview, it becomes clear that almost everyone can get car loans one way or the other. It is important to analyze the needs and the advantages and disadvantages of the different variants.
Agency portals as an alternative to the individual request for car loan
Car loan comparison on the internet is fast and free
When it comes to mediation, you have to differentiate exactly between two different approaches. On the one hand there are portals like auxmoney that work in P2P format. This is about private individuals lending money to other private users . If you want to apply for a car loan through the platforms, presents your loan request and often even fixed the payable annual lending rate. The more reliable applicants are and the more you are prepared to pay for a car loan of this type, the better the chances of lending.
Because: Only when the full amount is provided by the community, it comes to the contract. The creditworthiness check is as obligatory on most of these platforms as it is on the normal loans granted by German banks.
For lenders, the agency portals are interesting because they can reap significantly higher returns than normal investments. The risk of payment default is borne by all lenders. How many lenders are involved in such vehicle financing varies according to the size of the loan and the request.
Arranging for loans from banks and other financiers
In addition to private loans, for some years there has been an option to use the services of brokerage platforms that focus on professional banking partners and other financial service providers. The obvious advantage for users looking for a car loan here is that they have a particularly large selection of lenders who otherwise would not have found them on their own . For example, because they are small regional institutes. You will find favorable conditions around the clock. Sometimes more than 100 bank loans are included in the comparisons.
Direct banks bribe with low interest rates on car loans
Occasionally, the portal operators also negotiate special conditions within their network from which applicants can benefit via a car loan. The direct banking sector in particular, which does not operate its own branches, continues to grow steadily. The lower infrastructural costs as a result of the concentration on the online business are passed on at least proportionally to customers for car loans (and other financing such as the classic installment loan ). One group of customers who are still struggling with online car loans are the retirees. They prefer personal contact in the store. In the process, they can often make the most of their online resources, as they often do not have a good chance of success with many branch banks as of a certain age.
On the Internet, there are many retiree loans that can be completed into old age. So almost always attract interest advantages. Since the financed car itself serves as collateral in many cases, the conditions for vehicle financing are often lower than for a comparable consumer loan. If it comes to a default, the car is used by the bank (sold). For this purpose, many providers of car loans at the moment of the conclusion of the loan to hand over the vehicle registration. So borrowers can not make a sale of the car, without banks learn about it. For the holder, this is not a problem because the vehicle registration for TÜV, repairs and similar measures is completely sufficient.
Car loan and query
The “Schufa query” is the gold standard in Germany in the run-up to any lending. This has legal reasons, because the legislator compulsorily prescribes the examination of the creditworthiness. Banks used to charge fees for inquiries from the largest German credit bureau, the Schufa. In the meantime this is forbidden by the highest court, since the inquiry is placed primarily in the interest of the banks. Only if sufficient creditworthiness is recognizable will contracts be concluded. However, handing over the car letter as collateral is beneficial in that some banks are more generous with a car loan than with loans, where only the regular income of the applicants serves to settle the credit debt.
In addition to the credit check, borrowers must also provide proof of their identity. This can be done more and more digitally today – this requires a mobile device with camera function or a computer with webcam. For example, you can submit your ID card or other identification documents online to customer service in order to avoid the usual PostIdent procedure at a branch of Deutsche Post. This will save you time and provide the necessary evidence even outside normal business hours.
Use car loans for other purposes?
Yes, one can partially alienate the car loan. Again, this is an option for many car loan options. So you can use shares of finance for other purposes. However, as a rule, financiers make very clear statements about how much capital extra customers can apply for. The upper limit is usually values of up to 20 percent of the car loan . Get a car loan over 20,000 euros, so could have a maximum of 4,000 euros available for free. You can decide whether the funds should be used as a reserve for possible repairs, the next holiday trip or other eventualities. Or you treat your new mobile pedestal just a few extras.
Collateral on car loan
We already mentioned the essential safety: the financed car. By storing the vehicle letter, banks prevent customers from selling without their knowledge. Another security is, in fact, evidence of your income, whether it is a salary from dependent employment, pensions or other payments. There are some exceptions to the recognition of documents by lenders. The unemployed and recipients of social benefits, for example, should rather not have too high hopes for a large car loan. However, they may be able to optimize their chances by having a guarantor or a second borrower included in the contract.
Self-employed, meanwhile, are in a better position than a few years ago. You can get a car loan from more and more banks and banks today. Self-employed and employees must submit such or income proof in the application. However, freelance or self-employed borrowers may find that banks take a closer look at the documentation.
Which document do I need for a car loan?
The proof of income is without question a major role in the application for car loans. The only documents that you have to submit, however, are not these documents. There are a few more documents that may need to be submitted in addition to the application. These are one possible component of the application:
- Payroll statements, bank statements and / or tax bills
- Copy of employment contract (→ proof of permanent employment!)
- Settlements of utilities such as electricity or gas providers (proof of residence)
- if self-employed: possibly balance sheets of the annual reports of the last two / three years
- Originals of the registration certificate Part II
Borrowers who are on probation during the probationary period or can only show a temporary employment relationship, are more likely to face a rejection in many places. But there are several exceptions on the market, which is why the car loan comparison can once again pay off. The approval of the Schufa query is also obligatory, as already mentioned. Anyone who has just started their own business but wants to take out a car loan should be prepared for the possibility that a business plan may be called in by the lending bank. Submitting a business evaluation (BWA) may also be necessary; Here banks often decide individually which documents are requested in detail. Read more about loans for entrepreneurs . They need a car loan for a vintage car? Then probably also valuations must be presented, so that lenders can get an objective impression of the object of your desire.
How long does a car loan take?
Especially for all consumers who need a car loan at short notice, the question of the lead time is of relevance. For fast loans on the Internet, usually only two or three days elapse after the binding approval and signing of the loan agreement until funds end up in your account. It can sometimes take a little longer for branch banks, although in this market segment, too, there are more and more products such as express loans or lightning loans that can serve as car loans. The contractual details, which were mentioned around the personal credit, should of course also be in contracts for car loans from other providers.
In short, belong in the contract
- the exact loan amounts
- the repayment terms
- the type of financing
- the effective loan rate per year
- the regulations for the premature redemption of the remaining debt (including possible fees)
- Facts about special repayments, if permitted
- the amount of the loan installment per month (incl. repayment portion
Remember not to overstate monthly payments. The installments must be affordable because of the entire multi-year term – even if unscheduled purchases and expenses are pending, which must also be financed with the budget. Each car loan still includes a repayment plan, which is sent to borrowers by mail or digital.