A car loan comparison is an essential prerequisite for cheap car financing. The Finanzcheck comparison calculator is particularly suitable for a quick and meaningful comparison of special motor vehicle loans. Cheap car finance doesn’t just mean cheaper car loan. In order to find out cheap car financing, other points are important.
The question is, how much money do I actually have to spend to buy the car?
They offer installment loans on sometimes incredible terms: No or unimaginably low interest, repayments and interest payments only after a certain point in time. But be careful. The credit terms are just one, albeit more important, aspect of auto finance. Other aspects are: What do I get for my old car? Is car financing possible without a down payment? What discounts are available for cash payments?
Taking all the points together, it can be cheaper to forego the car loan on super favorable terms from the car bank and to take out a cheap loan from a third party provider to pay the purchase price in cash.
Car financing: installment loan, leasing or balloon loan
There are three basic models of car finance. First of all, the normal installment loan, as you know it from other purchases. In this case, the car loan is taken out for a certain period of time. You pay constant monthly installments (interest and repayment) on the loan amount.
The vehicle will be released at the end of the contract
With residual value leasing, a fixed amount is agreed for the residual value, for which the vehicle can be purchased at the end of the contract (depending on the contract). Leasing contracts are also possible without credit record. The so-called balloon loan for car financing is becoming increasingly popular. Three ways financing or final installment loan are other names for the balloon loan. Economically, the balloon loan is similar to a lease or a lease. The starting rates are low, the closing rates are high.
The procedure can vary depending on the contract. It is customary to buy the car after paying the final installment and possibly to finance the final installment with a new loan. Sometimes the contract also allows the vehicle to be returned without the final payment. If you choose a balloon loan, you should be sure that it can represent the final installment. Whichever form of car financing you choose, very often the car will be transferred to the lender as security. In practice, this is done by handing over the vehicle letter for the duration of the car financing.
Private vehicle financing
Credit marketplaces mediate alternative vehicle financing from private individuals. Terms of up to 60 months are possible. These loans can be used to finance new vehicles, used vehicles and vehicle repairs. Loan seekers describe their loan request and publish the project on a marketplace. Investors now have the option of bidding for a certain amount of time, depending on the marketplace, from 14 to 20 days. If it is financed within the stipulated period, a loan agreement is concluded.
In many cases, P2P loans are cheaper than comparable bank loans. However, adequate creditworthiness is regularly required. At credit lender, however, people with not so good creditworthiness requirements, but without serious credit record entries, have a certain credit chance, provided the project description creditor is able to convince. Details of these loans are presented in a separate chapter.
Compare online car loans
In the meantime, an unmistakable number of loan providers are bustling in the lucrative car loan market. The conditions are very different. A car loan comparison therefore makes sense – before you even set foot in the car dealership. Different loan providers can be compared online without spending a lot of time and without costs: Lender credit also arranges cheap auto loans. 100% financing is possible, combined with some special services. So you can 50% of the loan amount within 3 months with the sales proceeds for the old car. A rate break is possible once a year.
Carkredit.de claims to be Germany’s largest independent car bank with over 70,000 customers. Car credit is a service of the Cream Consumer Bank. The service has been tested by TÜV and has received several awards. The direct bank not only offers conventional loans, but also cheap balloon loans and leasing contracts for used vehicles. At Creditolo you can find car loans to finance new cars, used cars, car accessories, car repairs, even for tuning parts financing.
The credit request is free and non-binding
Capital Bank also finances motor vehicles as part of its Capital Bank personal loan. These are loans with a fixed, effective, uniform interest rate across all maturities for customers with good credit ratings. The conditions for the car loans of the individual providers can change. Although the information is updated at reasonable intervals, no liability can be accepted for the correctness.
Credit calculator provides an overview of current interest rates and cheap offers
You can find more information and other attractive loan offers in the detailed loan comparison calculator. Enter the desired loan amount along with the loan term in the calculator and set the intended use to “new vehicle” or “used vehicle”. With this setting, in addition to the usual installment loans, you also receive offers for earmarked vehicle financing with particularly favorable conditions.
At some banks you can take out special loans such as final installment financing. Find a suitable provider. Pay particular attention to the average interest rates and conditions such as special repayments listed under the offer.