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5 ways to finance the new dream car
You finally want to do it and buy your dream car? Then the question of the right financing arises, because very few people have the necessary money on the "high edge". In principle, it is possible to take out direct dealer financing in almost every car dealership. However, this is only the right option under certain circumstances, because there are viable alternatives. We will show you the best ways to finance your vehicle cost-effectively and effectively.
Dealer financing - when it's worth it and what to look out for
It's simple and effective Financing through the car dealer. You choose the vehicle you want, the dealer presents you with the documents and all you have to do is sign. But whether this makes sense depends on many factors. Many car buyers compare the quality of dealer financing to gambling. If you are in Play NetBet Casino Legally, it depends entirely on your luck whether you win or not. If you win big, you save yourself the question of financing, but for everyone else, keep your eyes open!
The problem with dealer financing is that you have few comparison options. Most dealers work with a bank and you have to use their conditions. The offer is only worthwhile if the interest rates are fair. However, the fees are often much higher than with a classic loan and you also have no option for cash payment!
Caution trap: There are car dealers who will entice you with a particularly favorable 0% financing. In the end, however, this can bring disadvantages. On the one hand, with this financing you often waive the statutory right of withdrawal and on the other hand you rob yourself of the cash discount.
Cash payment when buying a car – this works with a bank loan
Borrowing for the car is in Germany the most common reason for a loan at the bank. The car loan is primarily considered here, because it scores with lower interest rates. The reason for this is that the car is deposited with the bank as security (in the form of vehicle documents, etc.). This makes it possible to achieve fair conditions and pay less than with a classic (and unbound) installment loan.
The disadvantage is that the registration certificate is held by the bank and you therefore have no possibility of selling the vehicle early. An official note will be made that prevents it from being passed on. The advantage of this method is that you can compare different loans with each other. This is also where the biggest difference to dealer financing can be found.
A little hint: Should you choose a car If you are interested, be sure to find out about potential state support and bonuses!
Examine leasing offers carefully – when they make sense and when not
Leasing is a popular method if you don't want to buy your new car, but only want to rent it for a certain period of time. The leasing partner can be the manufacturer itself, an intermediary leasing company or a car dealership.
Your costs consist of a monthly installment that is lower compared to a loan. Are you self-employed this can have tax benefits, since the installments are deductible.
However, the monthly rental cost is not the only fee, which can become a disadvantage. In addition, your vehicle is almost always tied to an authorized workshop that charges significantly higher fees. In addition, you are obliged to take out fully comprehensive insurance in order to protect the vehicle in the best possible way. If you return the car after the leasing period, it must be in perfect condition, otherwise the residual value will be affected.
The car subscription - the new trend as an alternative to leasing
Newer options include getting a car subscription. The car is not booked long-term here, but only for a period of about three months. For the period of use you pay a monthly rental fee as well as the costs for electricity or petrol. The subscription already covers other costs (maintenance of the vehicle, insurance) so that you no longer have to worry about them.
However, this method is not always cheaper than leasing. Depending on the type of vehicle, costs of 1.000 euros and more per month are conceivable. In addition, depending on the offer, there is an obligation to pay a deductible in the event of an accident.
This method is only advantageous if you want to drive a new dream car regularly. You can access full service packages that save you a lot of work. Compared to leasing, however, the subscription is often more expensive and therefore not necessarily the best option.
3-way financing - it can reduce costs
The so-called balloon financing is based on three pillars, which is why it is also referred to as 3-way financing. You sign a contract with the car dealer for a period of two to four years, during which time the vehicle is financed. First you have to make a down payment, but you can alternatively choose financing without start-up capital. During the term, you pay monthly credit installments, which are cheaper due to the down payment.
A final installment is due at the end of the contractually agreed term. This is determined based on the residual value of your vehicle and can be high. Depending on the type of car, more than 50% of the total value is possible. If you decide not to buy the vehicle outright, you can return the car to the dealer.
This form of financing is always worthwhile when the car is returned or the money for the final installment is available. If another loan has to be taken out for the last payment, the financing option is almost always more expensive. In addition, there are clear restrictions on the number of kilometers driven. If these are exceeded, this can result in additional costs.
Conclusion: The car financing should be weighed according to personal criteria
How you should finance your car depends on various factors. An important question is how long you want to use your vehicle. For short-term users, subscriptions and short-term leasing are good solutions. If you know from the start that you want to keep your car for the long term, borrowing is almost always the better solution.
Compare different options to find the most cost-effective option for your needs. In addition, it is always helpful if you can make a cash payment (e.g. with a loan), because this allows you to negotiate good discounts with the car dealer.
