The German favorite child, namely his car, is now financed mainly with the help of a car loan. MaxdaCredit also helps you with car financing. This is not limited to new cars but is also possible for two-wheelers, caravans or used vehicles. We will make you a non-binding offer in 24 hours.
Forms of auto finance
The classic variant of financing cars represents the car loan, which is a normal installment loan. This means that the bank provides the borrower with an agreed loan amount and the borrower repays the loan amount plus interest and handling fees in installments to the bank. Details of the amount of interest and monthly installments as well as the term of the loan are set out in a written contract. In the case of a classic installment loan, collateral is, above all, a salary transfer or a guarantee by another person. The car letter serves as security in this form of auto-financing and is deposited in the bank. This ensures that the borrower can not sell the financed vehicle before a final repayment of the loan.
When comparing several installment loan provider of the APR or is in each case effective interest rate to be used. Some loan offers contain only the nominal annual interest rate, which, however, contains no information about processing fees and any other costs. These burdens must also be used for a meaningful credit comparison. The APR includes both interest and other costs and fees, making it a reliable benchmark.
A special form of the installment loan is the so-called balloon financing, also called balloon loan or final installment loan. The balloon loan is mainly used for the financing of motor vehicles. This is a high-end car finance, which makes the monthly installments relatively low over the life of the loan. At the end of the financing, the buyer can either pay off the remaining sum at once or he chooses a follow-up financing. It is also possible to return the financed vehicle at the end of the term again. It must be determined whether the value of the car corresponds to the remaining loan amount or whether the borrower still has to pay a balance.
The leasing of motor vehicles is a transfer of use. The leased vehicle remains the property of the leasing company, it is left to the customer only for rent. For this, the customer pays a monthly leasing rate, which is often lower than a credit rate for a car loan. At the end of the lease period, the vehicle will be returned. This may lead to a repayment obligation of the lessee, if the car has defects or the agreed mileage was exceeded. Self-employed and entrepreneurs can claim the lease payments as business expenses.
Provider of financing
Car buyers can contact either a bank branch, a direct bank on the Internet or us to get a car financing. After receiving the loan amount, the car buyer can act as a cash payer to the car dealer and negotiate high discounts in many cases. Since, in particular, the manufacturers often offer extremely cheap financing, which leads to so-called zero-percent financing, it pays to compare different providers, before a buyer decides on a particular financing.