A cheap car loan can be applied for at the house bank as well as at another branch or direct bank. All banks, which are based in Germany, require their credit customers to have faultless Credit Bureau information. This is usually not the case abroad. Here, too, it is of fundamental importance that the income is sufficiently high and sufficiently secure.
Cheap car loan – bank loan
Nobody should take out a car loan until they have obtained several offers and compared them in peace. It would not only be very important to pay attention to the effective annual interest rate, but also to the other conditions. A bank loan always has the advantage that the customer can pay the car in cash at the dealer, which often gives him very generous discounts on the purchase price. It can then also be worthwhile to accept a somewhat higher interest rate.
Cheap car loan – dealer credit
A dealer loan also has a number of advantages. A very important role is played by the fact that the car purchase and financing can be handled under one roof, which means that the buyer has only one or at most two permanent contacts on site. In addition, it should never be forgotten that in the dealership, even people who have been rejected by many banks have a chance of lending.
These primarily include the self-employed and freelancers, whose income fluctuates greatly, or employees, whose monthly income is very low. The main reason for this approach is that the amount of the loan by car has a very specific value. If the borrower is in arrears with at least two installments, the car dealer would have the right to move in the new or used car and only to return it after the customer has made the payment.
For this reason, anyone who has financed a car with a loan and is experiencing serious payment difficulties should immediately seek a conversation with the bank and seek an amicable solution. For example, the rates can be reduced or deferred for a while.