New vehicles are so expensive these days that they can rarely be bought immediately by the savings. Numerous banks as well as motor vehicle manufacturers offer financing for new cars. Since the conditions can vary greatly from bank to bank, a loan for a new car purchase should be compared with many offers.
A car loan can also be compared on the Internet
As with a consumer loan, a detailed loan comparison only provides information about the offer for the most favorable terms when it comes to a loan for a new car. Credit calculators, which allow different entries for terms and loan amounts, can be used to differentiate between cheap and expensive loan offers.
In contrast to a consumer loan, a down payment can be made on a loan for a new car purchase.
This down payment can also be entered into a loan calculator for car loans on the Internet. The down payment has a positive impact on the loan conditions, regardless of which bank the loan is taken out with. The higher this down payment, the lower the loan amount to be taken out.
The banks of the car manufacturers offer financing models
In the meantime, many motor vehicle manufacturers offer their own financing models for vehicles. Large car manufacturers either have their own banking company or work with a large bank that finances new cars. If you take out a loan for a new car purchase from a manufacturer, you can fully finance your vehicle. In so-called balloon financing, the borrower makes a down payment and pays a constant monthly rate until the end of the financing.
In most cases, however, the last installment is very high. Many banks also offer follow-up financing on poorer terms for the last outstanding amount. Another form of financing is vehicle leasing. Since the monthly installments for leasing are relatively high, this form of financing is rather unsuitable for private individuals.
Financing at 0.0 percent does not necessarily have to be cheap
Many car dealers have also offered 0.0 percent financing for several years. However, this does not mean that the loan for the new car purchase is available without running costs. Funding on these favorable terms is often limited to 6, 12 or 18 months. Thereafter, interest must also be paid on these loans. The closing fees for these loans are often higher than those of branch or direct banks. The terms of the loans are often chosen for the consumer so that follow-up financing is always necessary. Anyone who needs a loan to buy a new car should always compare the offers from branch and direct banks and from motor vehicle dealers with one another. The lowest interest rate offer does not have to mean the cheapest loan.