A cheap loan for buying a car is not only offered by numerous branch or direct banks, but also by most car banks. For this reason, it is usually very difficult to make clear statements about which loan is best suited for the specific financing requirement.
Every person who is interested in a car loan and wants to buy a new or used car should carry out a detailed loan comparison on the Internet. It would be ideal if a loan calculator were used. In this way it can be determined within a few minutes which car loan is currently the cheapest.
Cheap credit for buying a car – bank loans
At first glance, many bank loans are considerably more expensive than those from the car dealership. However, this should not hide the fact that it is often easy to use a bank loan to act as a cash payer in the dealership and collect substantial discounts on the entire purchase price there. Not only for a new car, but also for a used car, these discounts can be in the double-digit percentage range.
A cheap loan for buying a car would be recognizable, among other things, by the fact that both the borrowing rate and the annual percentage rate are very low.
The latter includes not only the bank’s interest, but also the fees incurred when borrowing and throughout the term. If the effective annual interest rate is dependent on creditworthiness, all persons who can demonstrate excellent or very good creditworthiness can enjoy particularly favorable interest rates. All other people usually have to pay higher interest rates and should therefore seriously consider whether a credit-independent loan would not be a better alternative.
Cheap credit for buying a car – car banks
It is not uncommon for a cheap loan to buy a car from the car bank. It works together with the car dealership and is able to offer the customer a particularly favorable offer for financing a new or used car. In this context, however, care should be taken that the cash payer discount, which is almost always a matter of course for a bank loan, cannot be claimed here. In return, the car banks lure with low interest rates.
It should also take into account the fact that it is much easier to get a suitable loan from a car bank than from a German branch or direct bank. Anyone who is willing to pay a larger down payment for the car can significantly increase their chances of getting a car loan again. Regardless of whether it is a new or used car, there is a value for the loan amount.
Only when the car has been paid in full and the loan has been repaid in full will the car finally become the property of the buyer. Should he fall behind with one or more credit installments, the dealer would have the right to withdraw the car at any time.