Finding the right car loan for a new car is not an easy task. Because the selection of offers is gigantic, so that the layperson quickly loses the overview. For this reason, we would like to take a closer look at the most important aspects of financing a new car and show how an optimal selection can be made.
What are the options for a car loan?
In order to find out where the best place to buy a new car, it is first necessary to know what types of car loans are available. Because only then can it be decided where to look for the loan and where to get the best financing for the new car.
In the first place is the classic car loan. It is offered by the car dealer as well as by the house bank, an online bank, a local bank or the direct banks. Private lenders or the Schufa-free loan are also classic installment loan offers. A distinction can be made between the installment loan without a fixed earmarking and between a car loan that is provided with monthly installments. The amount of the monthly installments remains the same over the entire term.
It is advisable to always opt for a car loan with such a credit model and not for the installment loan without earmarking. Because the installment loan without earmarking has higher interest rates than the earmarked car loan.
A second variant is the so-called balloon financing. It is very popular with car dealers because it looks cheaper at first glance. The monthly installments for the loan are low, but have the disadvantage that a large total amount remains at the end of the term. This large final monthly installment must then be paid in one fell swoop. If this does not succeed because no corresponding financial resources have been saved during the term of the car loan, follow-up financing must help out in order to be able to repay the portion of the loan amount from the last large installment to the dealer.
It is advisable to always compare balloon financing with other models of car financing. One should not concentrate on the discounts, but always calculate everything completely and also see whether it is even possible to pay off the large last installment. Follow-up financing is possible. But it also means that you have financial obligations to a bank for a long period of time.
A third variant for a car loan is the so-called three-way financing. It is similar to balloon financing. However, the borrower has the option of returning the car to the dealer at the end of the term instead of paying the last large final installment. With three-way financing, it is not necessary to take out follow-up financing or use saved capital. In return, the borrower can return the car to the dealer.
What are the requirements for car financing?
So that a suitable car loan can be found for a new car at all, the buyer of the vehicle and thus the borrower must be able to meet some requirements. There are lending guidelines that must be followed. The most important lending guidelines are the same for every bank. This includes having a good credit rating so that the repayment of the loan can be secured. Other procurement guidelines can vary from bank to bank. Here you have to look in detail which offer is best suited in the end.
The following requirements must be met in the context of a good credit rating:
- The borrower must be able to prove permanent employment without a trial period
- he must have sufficient and regular income
- He must be able to raise additional collateral if the loan amount for the car is high
- The Schufa must be flawless and free of negative entries
If the borrower is unable to meet all the requirements on his own, he can secure the loan with a guarantor. In a new car, this protection by the guarantor is only possible to a limited extent. A new car usually entails a large loan amount. And here most banks assume that the main security comes naturally from the borrower and not from a guarantor or a second applicant.
The documents for a car loan
In order to find the right car loan for a new car, documents are required that must be submitted for the loan. They serve to check the creditworthiness of the borrower and to see what personal and economic circumstances the borrower has. Proof of income, expenditure and permission to have Schufa checked.
Pay slips are required for proof of income. The bank also reserves the right to view the bank statements of the last 4 weeks or even 3 months. Depending on where the financing for the new car is applied for. The query of Schufa must be approved by the borrower. The bank may not query Schufa independently, but requires the borrower's approval. As additional security for the car loan, the registration certificate part 2 is then deposited with the bank to secure the car loan and to ensure that the vehicle is not sold during the repayment.
It doesn't work without comparison
In order to find the right car loan for a new car, a comparison must always be made. Only the comparison shows where the best and cheapest can be financed. It is important that the requirements have been checked in advance and that some preliminary considerations have been made. Only then is the comparison worthwhile.
An offer should be obtained from the dealer for the comparison. It can then be compared directly with the offers from the Internet. If a comparison calculator is used, various key data can be specified so that work can be carried out even more precisely.
Online loans are usually particularly cheap and ideal for financing a new car. They can be customized, applied for conveniently from home and allow the borrower to act as a cash payer towards the dealer. In this context, the dealer will issue a cash payer discount, which can amount to several thousand euros and significantly reduce the purchase price of the new car.
The cash payer discount also automatically reduces the loan amount, which has a significant effect on the monthly installments and / or the term of the loan. In this context, it is always worthwhile to finance directly through a bank, not through the dealer.
Different ways lead to cheap financing for a new car. The borrower is free to choose which of these routes to take. Financing with an online bank usually brings the best benefits for the borrower.