Around 20% of all car purchases are now made in cash. Financing is required or desired for the remaining 80%. And that’s not even surprising. Has the credit for buying a car become so cheap that as a cash payer you have to be afraid to pay even more in the end.
Many discounts make the credit for buying a car so cheap
You get a discount almost every time you buy a car. The dealers are happy if they can sell a car. They like to give a discount to get the customer to conclude a deal. Because if you don’t, another dealer will.
Discounts are usually offered at the list price. Benefits in kind, such as a better radio, sanitary box, warning triangle, vest or a set of winter tires, also count as a discount. If you also finance the car with a loan to buy the car, you often don’t even have to pay interest. Or the interest is so low that it hardly matters.
Where to get a loan to buy a car
As a rule, you take out a loan to buy a car directly from the dealer. They work with their banks and can therefore make these good offers. To benefit from a loan here, you have to meet the same requirements as with any other installment loan. A work must be proven that generates a good income.
In addition, the credit rating must be correct. This is checked straight away in the dealership, so that as a borrower you save yourself a lot of travel. As a security, the vehicle registration is retained on a car loan. It is only available when the loan has been paid in full.
But car loans can also be taken out directly from a bank. Whether at a branch bank or a direct bank is not critical. It is important that you choose the best offer and that the terms and conditions match the borrower. Here, too, the vehicle registration document will have to be deposited as a deposit. Protection that is particularly popular with new cars.
A comparison is worthwhile
But before putting your signature on a loan agreement, you should always compare all offers with one another. Usually you get the best deals from car dealerships, as they specialize in car loans and work with their own house banks. But loans outside the car dealership don’t have to be bad. You just have to look exactly where and how you can and want to finance the beloved car best. And then you will definitely find what you are looking for and can fully enjoy the time with the new vehicle.