Almost every credit institution offers its customers special motor vehicle financing options. Whether they are acquired new or used, often plays only a minor role. A car loan from the bank always offers the advantage of lower interest rates than normal installment loans. As security namely the acquired vehicle itself is used, whose ownership passes to the customer only with the complete payment.
A car loan at the bank can usually be applied for just as easily as a normal installment loan. After the vehicle has been purchased and paid for by credit, the vehicle owner sends the registration certificate Part II (formerly known as a car letter) to the financing institute. The car loan is thereby a lot cheaper than normal installment loans. A difference that can amount to two to three percentage points.
However, there are additional benefits: By borrowing, it is possible for the customer to pay the sum in full and in cash. Of course, retailers like to see this and let them negotiate accordingly. Bonuses or discounts should definitely be there for the customer. Especially the dealer discounts should be taken into account in a car loan of the bank as accurately as possible in comparison. The remaining terms are based on regular installment loans. For example, terms can be chosen flexibly within a period of 24 to 120 months, depending on the provider.
Advantages over loans of the Autobank
Car banks, ie the banks of major vehicle manufacturers, also offer car loans. Their advantage lies in a cheaper interest rate and several variants of the repayment, which is why they do not necessarily have to be cheaper. Customers are here, depending on the financing, tied to the purchase of a specific model. In addition, no discounts can be negotiated with the dealer here. It is thus above all a question of the calculation whether a car loan of the bank or the manufacturer is worthwhile for the desired vehicle. In addition, the borrower in the car loan of the bank has the free choice in terms of the vehicle, and is not tied to a specific manufacturer or even a specific model.
Even ordinary commercial banks are increasingly offering multiple types of repayment. A special role is played by the car loan of the Bank of final installment financing. After a down payment has been made on the vehicle, the debt service is much lower than with normal loans. This is at the end of the term, a high final rate, for which several options are offered. The first way is to pay off with a follow-up financing, which extends the total duration and also the amount of interest paid in total. The final installment can also be paid directly, after which the vehicle passes directly into the property of the buyer. Last but not least, banks offer the possibility to return the vehicle. The final installment is issued to the buyer and he can now choose a new vehicle.