Get limited or temporary cash, leasing and car financing offers here! What is the right car financing? If you take a closer look at the offers of the individual manufacturers, you will see how low the monthly rates are for comparatively large cars compared to private leasing. The offer, The cheap car loan of your bank: The easy way to your dream car.
Special offers: Top offers for new federal cars
In addition to the Configurator and the personal composition of your dream car, we offer you as a broker for German new vehicles limited special offers. Use and rent, buy or pay now the top offers. These include, for example, the attractive conditions for companies operating in the Volkswagen and Volkswagen divisions. Equally exciting are the directly available new vehicles or the special offers with short-term or daily registration.
Vehicle Financing – Models and Examples of Financing
There are numerous alternatives: installment loans, dealer financing, leasing or balloon financing, to mention only the most important. Below you will get a detailed insight into the financing possibilities and explain which car financing is suitable for you. Financing can be either through an independent bank or through the dealer. As a rule, the dealer cooperates with the car manufacturers’ banks and in many cases can offer favorable interest rates.
However: really good deals are not always available for all types from one manufacturer and may be discontinued types with a greater loss of value. The one who wants to finance it on the basis of a separate house bank can appear to the giver as a payer and negotiate a larger discount. The installment loan through the house bank can be the cheaper, despite high interest rates.
Although the annual percentage is lower, in this case, the buyer would have paid well over USD 400 in the dealer financing. The reason for this is the higher rebate he receives from the retailer for a “cash purchase”. Balloon financing is a installment loan in which part of the loan amount is reimbursed at the end of the term by a single, large rate (the “balloon”).
Borrowers benefit from relatively low monthly payments, but have to raise a large amount at the end of the deadline in order to repay the balance. If the borrower is unable or unwilling to pay the balloon out of his own pocket, either a new follow-up loan is required or the car is sold to pay the last installment.
Balloon financing thus entails two risks for the borrower: If the interest level rises during the term, a follow-up loan is only possible with a higher interest rate. This increases the cost of vehicle financing. In the event of a private sale of the vehicle at the end of its useful life, the future market value of the vehicle and its conservation status also play a significant role. Second
It is not always possible to estimate the conditions under which the car can be dropped off at a later date. A repurchase agreement with the retailer can pay off: this is a good idea: it sets a remaining value and an annual mileage for the car. The return of the vehicle to the agreed return value is up to the seller and the last installment does not apply.
It can come to disputes over the vehicle condition, comparable to the hire purchase. In the classic three-way financing, the buyer has the free choice and is considered the most customer-friendly form of balloon financing: only when the last installment is due, the buyer determines the payment / follow-up financing or vehicle return.
However, it is always necessary to conclude an individual contract with the car dealer or the vehicle bank. Despite lower monthly installments, balloon and three-way financing is always more expensive than a installment loan with the same maturity and fixed interest rates. Because the repayment is initially lower than a loan, which is why the high completion rates over the entire duration of interest.
Effective interest rate: 3.9% pa 3.9% pa Despite the low monthly rate, the total cost in the example given above for ballooning is more than USD 350 over the total cost of the installment loan. In fact, leasing is not a form of financing, but a form of tenancy: the tenant pays the agreed lease and gets in return a right to use the vehicle.
After the deadline, the buyer returns the car to the dealer. In general, professionals recommend leasing miles to private consumers: while the mileage can be reasonably estimated, the consumer has a greater security risk when leasing residuals and must be more vulnerable.
The advantage of leasing for individuals is the relatively good monthly rates and manageable conditions. However, the direct comparison between leasing and credit or purchase of a loan is difficult: the exact contract costs can only be determined after the return of the vehicle and taking into account the actual mileage and condition.
Damage to the vehicle or increased mileage may lead to disputes between the parties and ultimately to additional payments. In general, leasing pays off especially for private customers who operate an existing car model and replace it with another one after a few years.
In the long term, however, the financing of loans is better: Although the buyer initially has to accept a higher interest rate, he is after a few years actually the owner of the car. In addition, the renter should take care that an early termination of the lease is difficult. In classic financing, installment loans or car loans are often the cheapest form of financing.
Balloon financing carries more risk for the borrower and is almost always more expensive than comparable installment loans. However, it is important to ensure a proper return agreement with the dealer. The leasing business is particularly suitable for those customers who often change the model and / or brand of their vehicle.
Basically, whoever appears to the seller as a cash payer, can often deny the best discount. So it may well pay to talk to the dealer about the purchase price and the equipment of the dream car and only then to clarify the appropriate financing issue.