With the increasing number of sunny days, some car owners are thinking about enjoying spring with a new car. It doesn’t necessarily have to be a new car, the dream convertible at the dealer around the corner is far from getting old. The question that often arises in this case is about payment. Even if the “new” is a bargain, buying a car is at best a four-digit amount, usually a five-digit amount. If the savings book does not give this amount, the next consideration of financing applies. But how do you find the right financing?


Dealer credit or bank?

credit loans

Dealers advertise new vehicles with apparently unbeatable financing offers. The crux of the matter is that the car banks have no money to give away. On the one hand, they usually offer extremely short terms, which in turn means that the household budget is overused. On the other hand, dealer financing leaves little scope to negotiate the purchase price. Paying cash is usually still the best argument to get a discount. However, a bank loan enables cash payment. It gets annoying, however, when the laboriously worked-out discount is leveled again by too high interest rates. If you spend the time to find the cheapest car, you should also spend the time looking for the cheapest financing.


Comparison portals offer the best overview

financial loans

Fortunately, credit comparison portals, for example kredite.org, offer a detailed overview of the different providers in just a few minutes. Of course, the first look is at interest. However, other factors play a role in the selection. Does the bank offer the option of repaying part or all of the loan at no cost before the end of the agreed loan term? Is the interest rate uniform or dependent on creditworthiness? In the second case, it is advisable to not only submit a loan request to one bank, but to several. The banks create non-uniform credit characteristics for a loan.

The company that comes first in the sample calculation can suddenly only rank second or third in an individual loan request. The loan request is made online in a short time, the answer will come within a few minutes. This time is well invested. The intended use, in this case car financing, also plays a role in the interest rate. Many banks grant more favorable conditions for car financing, since the vehicle registration certificate is deposited as security. If the loan cannot be repaid, the car can be more easily used as security than, for example, a fitted kitchen. If you want to get started with a new car in spring and take a few points into account when financing, you have double the fun.

James Hollis