The classic car loan and its special features
Many people who opt for a new vehicle today use financing for this. This can be done either through the house bank or via a direct bank or a car bank.
The car financing
The most common form of financing for vehicle financing is the classic car loan. This loan is a conventional installment loan that will be repaid to the bank after the contract has been signed at constant monthly installments. Both the monthly charge and the interest rate are constant throughout the contract, giving borrowers planning security.
The term of the car loan can be freely agreed with the bank. Terms are usually 36-60 months, with the monthly burden decreasing with increasing contract duration. At the end of the term, the loan is then completely repaid, a residual debt does not remain.
Depending on your requirements, the car loan either finances the entire purchase amount or only part of it. By introducing a down payment, of course, the credit burden can be reduced and thus the monthly rate can be reduced.
The special features of car loan
The car loan can be completed on request directly from the dealer. He works with a car bank, who accepts the loan application and decides on it. Prerequisite for the lending is a fixed monthly income and a positive query of the Schufa information. After a few minutes, the loan application can be decided.
In order to secure the car loan, the automobile banks agree on the security of the vehicle. In this form of collateral, the car remains the property of the bank, the borrower only has the right to use the car. Only with full loan repayment is the security transfer canceled and the car becomes the property of the borrower. In order to secure the ownership, the bank receives the car letter, without which a further purchase is not possible.
By contrast, alternative banks such as home or direct banks frequently forego such collateral and give up their car loan. This has the advantage that borrowers can sell their vehicle as desired and thus remain flexible.
Comparison is worthwhile
Since the offer of car loans today is very large it is worth comparing the offers of the banks. Even if the offer of the dealer seems tempting, the conditions of other banks should be checked before concluding a contract. Sometimes it makes more sense to take out the credit at your own house bank and act as a cash-payer to the dealer, to get a cash-payer-discount.
Calculate and compare car loan
In cooperation with our partner Finanzcheck we offer you the possibility to calculate your monthly installment at your desired loan amount and term. Afterwards, you can make a serious credit request and apply directly for the loan.