Of course, a luxury car should only be bought if you can afford it. But often the car is a purchase that is absolutely necessary. You have to drive to the workplace. Then there are consumers who make a living with a car.
Just think of the self-employed taxi driver or driver. However, very few can pay for a car from reserves and look for a car loan. The first way is usually to the house bank. If all conditions are green, the loan is also approved,
Car loan despite installment loan – requirements
To get a car loan, borrowers must meet the conditions of the banks. This includes the appropriate income, which is above the garnishment exemption limit and shows a garnishable share. In addition, the employment contract must not be limited in time and must not include a trial period. The positive credit bureau is very important.
If negative entries are noted in the credit bureau, this can lead to a loan refusal. The banks see a great risk of default. The bad credit bureau already signals that there have been payment problems in the past. If the borrower can meet all the conditions, the road to car loan is free.
Even if the house bank makes an offer, this should not be accepted directly. Under the good conditions for a loan, the loan comparison is worthwhile.
Car loan despite installment loan – loan comparison as a basis
A non-binding and free loan comparison can be made on the Internet. If you are interested in a car loan, you should first determine the loan amount that is required.
Only as much credit as necessary should be taken out. If the customer wants to use the cash discount from the retailer, he should negotiate the purchase price with the retailer in advance. This sum is entered in the comparison with the desired term. A list is then displayed, with the best providers topping the list.
With the providers, the amount of the credit rate and the interest rate are also visible. With regard to the interest rate, it should perhaps be mentioned that this does not apply to all customers, since it mostly results from the customer’s creditworthiness.
If the credit rate is displayed too high, the rate can be adjusted to the income with a longer term. A short term brings high rates, but the loan is paid faster.
Car loan despite installment loan – financing from the dealer
Car dealers also offer financing and often very good ones. Just think of the 0% financing that seems very cheap. But there is usually a catch. Because this 0% financing is usually only granted with certain loan models.
In addition, the alleged savings were often added to the loan amount. Nevertheless, the financing from the dealer can be worthwhile. Via the auto bank, three-way financing or balloon financing can also be a loan solution. With the three-way financing, however, a down payment has to be made.
The installments to be paid are very low, but at the end of the loan term there is the high final installment. This can either be paid from reserves or financed further. The car can also be returned to the dealer. However, this type of financing should only be used if the final installment has been saved at the end of the term or if a larger amount of money is expected.
Car loan despite installment loan – don’t underestimate cash discount
If you take out your car loan from the bank, you can pay cash at the dealer and often receive a high discount. This discount in particular can top a 0% financing.
If you still have to pay an installment loan, a merger of the two loans might be a better option. So only one installment has to be paid and with a corresponding term it will even be very cheap.
Here it is important to check again whether a prepayment must be paid when the installment loan is repaid and how long the loan term of the installment loan is. If this is only payable for half a year, rescheduling is often no longer worthwhile. The classic installment loan for buying a car or a special car loan can be taken out at the bank. With this loan, the vehicle registration document is often deposited as security.
The customer can then often expect favorable conditions.
Car loan despite installment loan – only the courage to take online credit
Many consumers do not have the courage to take advantage of the cheaper online loan. There are fears that the credit process is complicated, while others criticize the readily available transparency.
In general, an online loan is a simple credit procedure and all the necessary information is disclosed on the provider side. A cheap bank can be found with a loan comparison.
If all information has been read and the customer is satisfied with it, a loan application can be made directly via the lender’s website. All he has to do is enter some personal data in the form provided, and he will almost immediately receive a preliminary loan decision and offer.
If this is accepted, the necessary credit documents will be sent to the lender. After they have been checked, the approval and, at the same time, instruction of the money is given.
Car loan despite installment loan documents
As proof of creditworthiness, customers must provide pay slips from the past three months and bank statements from the same period. A copy of the employment contract is often required.
Banks also like to see a small household bill where all income and expenses are listed. These documents can be sent to the lender with the signed loan application.