Today many people have their own vehicle. Often unnecessary in the city , but indispensable in the country. Without your own savings, however, it is not possible to finance a new car from the postage fund. A bank can help by approving a car loan. However, this should by no means be concluded without a prior comparison, as reality shows.
Independent bank or manufacturer-linked bank?
When buying a new or used car , drivers usually have the choice of taking out a loan from an independent bank or from a manufacturer-linked bank. Both variants offer individual advantages, but also disadvantages.
- Cash discount
- mostly without a deposit required, therefore well suited for people without savings
- mostly favorable conditions
- often even zero percent financing
- At certain promotional periods (or certain configurations), manufacturer-linked banks can actually be cheaper
- special offers are often only valid for certain car models, only for new cars or only for certain equipment
- special offers are often only available during certain promotional periods
- a deposit is often required
- Contract can only be entered into with an affiliated bank
Good to know: if you enter into a contract with an independent bank to finance a car, the money will often be transferred within a few days. This money could be used to pay for the vehicle in cash, so that borrowers benefit from the cash discount. This type of discount is therefore not possible through dealer financing.
What to look for when comparing car loans
With a loan comparison on the Internet, it is very easy to find out which conditions of a bank are really good. Different data can be compared in a matter of seconds, which would be difficult to overlook with a manual query.
The following points are particularly important when comparing car loans:
- Purchase price: In the first step, those interested in a loan enter how high the purchase price of the desired vehicle is. This defines the final loan amount that is required
- Duration: With this bar you can change a lot individually. A long term results in a low monthly rate. So if you only have little money available per month, you should choose the longest possible term. If, on the other hand, the monthly capacity for installments is higher (or if, for example, a higher down payment has been planned), the term can also be shorter.
Depending on these three data (or only depending on the desired purchase price and a desired term), the first loan offers can already be determined. Now it depends on the further details.
Important: Of course, the monthly rate that is offered in a car loan comparison is particularly interesting for the borrower.
Conclusion on the car loan with previous comparison
When buying a car, it is often about particularly high sums. Here users should rather compare two or three times before signing a contract. Instead of just consulting a car dealer, it makes sense to also include offers from independent banks. This often results in significantly better offers.…