At first glance, a car loan from a house bank appears to be significantly more expensive than a car loan from a dealer. Nevertheless, it would be advisable not to resort to a dealer loan early, but to compare all offers thoroughly. Under no circumstances should we ignore the fact that a car loan from the house bank often offers the opportunity to pay the car in cash and thereby negotiate substantial discounts on the total purchase price.
Requirements for a car loan
If you want to get a car loan from your house bank or another German bank, you have to meet roughly the same requirements that apply to a normal installment loan. It is particularly important that the Credit bureau information is completely in order and that the income is sufficiently high and secure. Employees or civil servants therefore have the greatest chance of getting a car loan from the bank.
Unless otherwise specified, the interest rates apply for the entire term. They could be both credit-dependent and credit-independent. Civil servants and well-paid workers can benefit to a very special degree from credit-related loans. You are often awarded the cheapest interest rate possible on the loan.
All other people, whose credit rating is not so good, but is still sufficient, should opt for a credit-independent car loan. In this context, it should be mentioned that a normal installment or consumer loan can also be used for a car.
The same applies to the overdraft facility if it is sufficiently high. With the money from the bank, the customer can go to a dealer of their choice, choose the vehicle of their choice and pay it directly in cash. Unless the car dealer points this out himself, the customer should not fail to inquire about the cash payer discount.
Repayment of the loan
After the loan approval, the customer must sign a loan agreement that clearly regulates when the repayment must begin, how high the monthly installments are and when the repayment ends. In many cases it is easily possible to make additional special repayments. If you have the opportunity, you should make use of it.
In this way, the loan can be repaid faster. Payment arrears or incomplete monthly installments should be avoided if possible. Otherwise, there are serious consequences that could lead to a loan termination and a serious negative entry at Credit bureau.