Are you looking for a cheap car loan? In the following overview we have compiled the best providers of auto loans. This helps you to find the cheapest car loan for your project, from partial financing to the financing of luxury cars.
Information on car loan or vehicle financing
A car loan offers the possibility to finance a car with a loan if a cash payment is not possible. Usually car dealerships offer banks that pay in advance, that is, pay the car “for the time being”. This form of financing does not necessarily have to be the cheapest.
Alternatives to car financing through the car dealership
The credit angels recommend a non-binding and independent online loan comparison before concluding vehicle financing through the dealership. Depending on your creditworthiness, auto loans for your dream car are already available at less than 5% APR, such as Centi loan (see table).
When applying for a car loan, a salary calculation from the buyer is usually requested from the last month for presentation. This ensures that the latter is able to pay a monthly installment in order to repay the amount “initially” financed by the bank for the purchase of the car.
It is possible to set different terms for the repayment. It should be noted that long terms keep the monthly charge within limits, but also quickly increase the repayment value due to interest.
Online credit vs. Dealership financing
- Many car dealerships today offer 0% financing when buying a new car. However, this does not apply to used vehicles. The financing is also registered with the Credit bureau (protection association for general credit protection).
- Credit bureau ensures that a large number of individual loans do not lead to overindebtedness (more information on Credit bureau scoring). – This is usually also the case with online loan offers, but there are alternative offers via credit institutions (more on loans without Credit bureau ).
- If a car is financed through vehicle financing through the bank recommended by the dealership, the vehicle letter of the vehicle purchased is deposited with the bank as security. The buyer receives the vehicle documents to be able to drive the car, but the owner is the one who has the car letter of the car, in this case the bank. After the total amount has been paid off, the buyer of the car receives the vehicle letter and is therefore the legal owner. – In the case of financing via an online loan, on the other hand, you are completely free to use the loan amount, which is why you are the full owner of the vehicle purchased from the start and therefore have the vehicle registration document from the start.