A credit comparison provides in such cases numerous offers at much better terms. Another advantage of such a rescheduling lies in the increased planning security, since the interest rate of installment loans is fixed over the entire term, while the interest on the credit line are variable.
Compare car loans
Motor vehicles are traded at prices that burden the family budget over many years. Even small differences in interest rates on a car loan over a long term make some hundreds of euros difference.
A very cheap car loan at first glance gets the buyer through the banks of vehicle manufacturers. Here are at almost all groups in the market segment of small and compact cars currently auto loans of 1.9 percent APR and less to have. That sounds pretty easy and convenient, car, car loan and insurance from a single source, but the matter has its price.
Car loan from the house bank
A second possibility of vehicle financing consists in a car loan through the house bank or via a direct bank on the Internet. These online banks do without individual customer service. Here, the borrower has to work out all the information about the car loan itself. The thus saved personnel costs pass on these banks to their customers via a lower APR. These car loans are currently available with interest rates of just under six percent, loan calculator on the Internet help with credit comparison.
With such a car loan, the new and used car customer acts as a cash payer at his car dealer. Since every seller is immediately wide awake, because now ringing cash in the cash register. So motivated it is not difficult for the dealer to grant one or the other percent cash rebate. For example, given the negotiating skills, discounts of 10 percent and more should be possible compared to the recommended retail price.
A car loan is used to finance the purchase of a car. It is used by many buyers and resembles a classic installment loan. However, there are a few differences in the loan rate that you should keep in mind.
What is a car loan
A car loan is a loan that is used to finance the purchase of a car. Since vehicles are a relatively expensive purchase, such a loan is often used. There are different types of car loans that differ in terms of financing and the type of collateral required. The three-way financing is similar to the classic leasing model. Here, the buyer pays a certain amount of the vehicle, then pays the installments spread over several years and returns the vehicle after the financing expires, finances it or buys it. In the latter case one speaks of a so-called balloon loan. This form of financing is offered by both traders and various banks. Far more often than the three-way financing the installment loan is used. The buyer pays only the installments from the bank until the costs are paid. Since the car itself serves as security, the lending rate here is usually much cheaper. In addition to banks, various online portals also offer classic installment loans, which are tied to car sales.
Advantages of a car loan
A car loan has several advantages over other forms of credit. So the conditions are usually better than normal installment loans, since the security is great. Thus, even customers who have a weak credit rating, have the opportunity to complete a car loan.
Another advantage is the possibility of down payment. If you pay a certain amount directly when you buy, you can expect much lower rates. The flexibility in financing is therefore very high and offers you a lot of leeway. The disadvantage is only that you can not take advantage of discounts on installment payments. In addition, you must deposit the vehicle registration document as additional security. On top of that, a car loan is a good alternative to the classic installment loan, whereby there are big differences between the different car banks.
Autobanks: the differences
Depending on the Autobank, there are sometimes significant differences in the completion of a car loan. So there are institutes that require a high credit rating despite the safety of the vehicle. Especially car dealers, who have luxury vehicles on offer, rely on additional collateral and higher rates. Leasing is also an option in many cases. However, auto banks are not always the best choice despite the low interest rates. In some cases, traders offer a so-called cash payment discount, which can only be claimed with a correspondingly high credit. In many cases you can save money, provided the discount is high enough. Here it may be worthwhile to negotiate or directly to claim a car loan comparison. After all, a vehicle is a big investment that you, as a buyer, do not want to pay.