To finance a used car through a loan
Without your own vehicle, you will not get far today. You do not need the car just for private trips, but often for the way to work. Of course, cars offer many advantages, but they are also not cheap. New cars in particular can quickly cost several thousand euros. This one does not just lie on the bench. That’s why many interested parties opt for a used car. Here you get a vehicle that has been in use for some time. However, it does not have to be worse than a new car. The big advantage is that you can save a lot of money.
To finance a used car through a loan
- Buy a used car with a loan
- What must be respected?
- Comparisons help further
- How to proceed with the credit for used cars?
- Types of used car loans
- What role does credit rating play?
- The used car loan with insurance
- What is possible with low income?
Buy a used car with a loan
Even a used car can cost a lot of money . If you have not saved anything or negotiate any installment, then a used car loan will certainly help. There are today different loans, which come for a used car in question. Of course, the big advantage is that you do not have to spend the whole amount at once .
You just have to apply to your house bank or another bank and apply for a suitable loan. This loan is then paid off month after month. The term is of course always dependent on the loan amount, the interest and your own income.
What must be respected?
The monthly installments of the loan must not exceed your own possibilities . It is best to keep a household book so that you have an accurate overview of the finances. Only then can you find a loan that fits into your own environment. It is important that one also includes the maintenance costs of a vehicle . These include not only petrol and taxes, but also repairs and insurance.
Good to know:
The loan should have a short term. Although there are offers over 48, 60 or even more months, but this often has the consequence that the interest rate is disproportionately high . In most cases, the shorter the repayment term, the cheaper the loan. The repayment term should never be longer than the time in which you want to drive the car. The loan amount can also be pushed down a bit. This is possible if you pay about 20 to 30 percent of the purchase price.
An alternative is to invest the saved money at a low interest rate . It then offers security. Before you buy a used car through a loan, you should be clear how much the car is worth. If the rates are too high, then the vehicle will not make much fun. One should not get too big financial restrictions through the loan.
Comparisons help further
Of course, it is not always easy to find the right loan for a used car. So you do not choose the wrong offer, you should start a comparison. In this then many important questions can be clarified . Special repayments, maturities, installments, hedges and other items are also included in the comparison.
In addition, you can save a lot of time and effort with a comparison. After all, the comparison portal handles all the work. You look at the end only the best results . Surely you will be able to quickly and easily find and use a suitable loan for a used car.
How to proceed with the credit for used cars?
Before concluding the contract for the (online) used car loan, read the general terms and conditions (GTC) well, because all duties and rights of the two contractual partners are specified . Sign the contract only if you agree with all contract options, in case of doubt, the Consumer Center is available to advise you.
Print out the entire contract or save it on your own PC, because in this way you will have to prove later in case of any ambiguity what has actually been agreed in writing. In addition to buying real estate, buying a vehicle is one of the most common private investments, and you can often get a cash rebate with used car loan.
Types of used car loans
There are different types of car loans, with the installment loan for free use, the financing of the used car is possible . A special car loan may be used only for the purchase of the car, other consumer needs can not be financed with the car loan. The “zero percent financing” by the used car dealer should have the advantage that no interest and fees are incurred. As a disadvantage, however, immediately noticed that for the discount for the cash payment of the used car deleted.
The house bank is not always the best address for the cheapest car loan, credit comparison portals are the right place to find the used car loan, which currently has the lowest interest rates and other fees.
What role does credit rating play?
Consumer advocates often complain that credit-based car loans are not transparent enough because banks can grant benefits to higher-earning applicants that ordinary earners can only dream of. However, future borrowers with excellent creditworthiness are welcome to use credit-based used-car loans to save interest.
Short maturities with relatively high rates have the advantage that the money can be used to pay in cash for the used vehicle and the total interest burden remains low .
In addition, the current interest rate policy contributes to the fact that car loans are cheap for many banks, who wants to keep his savings as a reserve, uses the car loan for the realization of the used car purchase.
The used car loan with insurance
Comprehensive insurance is mandatory for most car banks offering car loan. When financing with an installment loan, the borrower can freely choose whether a partial or full insurance is to take place. The residual debt insurance is also offered by many banks, a lucrative business for the banks, the borrowers are hedged with financial difficulties.
In times of digital change, everyone can be affected by downsizing and the residual debt insurance paves the way to a life without residual debt, because in case of job loss, the rates are quickly priceless. The final installment financing keeps the monthly installments for repayment of the loan for the next used car as small as possible.
What is possible with low income?
Trainees, students, the self-employed or job seekers often have a limited budget , the dream of used cars can still be realized with the right bank. For self-employed, there are some banks that tolerate the irregular income with a reasonable credit rating and approve the loan after consultation. Anyone who selects a bank that presents offers for self-employed from the beginning increases the chances of accepting the loan application.
For the other target groups it is similar, often it is already clear on the Internet appearance of the bank, whether the desired credit for the used car is also granted for borrowers with a tight budget, because these applicants in many cases urgently need the car, for example Time-saving to get to the apprenticeship or to the applicant interview in the city.