Car loans: Money in a hurry
Buying a new or used car is not that easy. After all, it is not just the variety of vehicles on offer that has to be selected. It is also important to always keep an eye on the financial side. Because a vehicle, especially in mint condition, is not available for a few dollars. Several tens of thousands of dollars are due if the mobile pedestal is to be new or at least as good as new. Lots of money that most car buyers do not have, they use the help from car loans.
You usually buy your new car from a car dealer. In addition to the vehicle, it also offers you repair service, comprehensive warranty services, and various financing options. However, you also have the option of paying for the vehicle in cash. If you do this, there are often high discounts that can be seen as a reward for buying cash.
However, if you opt for a car loan, the dealer offers you three different options, all of which should be explained in detail.
Option one is the classic installment loan, which is also called full financing and where you have neither a down payment nor a large final installment. Rather, consistently large rates are waiting for you, which will accompany you for the next few years. How high the rates are and how long the term will depend on the purchase price of the vehicle you have selected. Never make too little calculations here so that the installment loan does not cause you financial difficulties.
Option two is the so-called balloon financing. Do you want to use this for a loan for a car? Then you have either a large down payment and monthly installments, monthly installments and a large balance or a deposit, monthly installments and a large balance. Depending on how you want to arrange this loan option.
Option three is leasing, which is offered not only to corporate customers but also to private customers. With leasing, you only rent the vehicle. You pay a monthly discount, but this does not ensure that you paid the vehicle at the end of the term. At the end of the term, the vehicle belongs to the car dealer who will take it back from you. You can choose a new vehicle for this and consider which financing you would like to use.
What does the bank offer?
If you want to benefit from the cash payer discount, you must either have saved enough money or use a loan for a car from the bank. We recommend an installment loan or a special car loan. Both versions provide you with exactly the money you need to buy a car.
It is important that you have a precise calculation in advance of how much money you can save with the cash payer discount. If this discount is not eaten up by the interest that is due for the installment loan or the car loan from the bank, this variant is worthwhile. Otherwise, you should use the offers of the dealer, who can optimally match them to your car purchase.
By the way: If you want to take out a loan for a car, the dealer or the bank will keep the vehicle registration certificate as a deposit. In such a case, the purchased vehicle is always considered a security, so you do not have to provide any further security. Just make sure that your Credit Bureau is positive and that your income is high enough so that your loan request and thus the purchase of a vehicle can be realized.