To be mobile at last: In principle, everyone dreams of this or at least sees it as a necessity to get to and from work comfortably. Much of this dream depends on whether you can even afford a vehicle.
A car loan from a bank is often necessary for this. The following text is intended to provide a little information about what this actually means.
Car loan from a bank: The car loan aspect
A car loan is actually the best way to secure a loan that can be used to finance a vehicle. And of course, a car loan is granted by a bank. This provides the means for which the name came into existence only on the condition that the borrower uses the money to actually finance a vehicle. If he does not do this, then he is no longer entitled to the money.
However, the aspect of financing goes beyond the actual payment of the vehicle. It also includes things like insurance costs, TÜV costs and often also taxes for the first year. Where the banks draw the line differs from bank to bank. Most of them all do so when it comes to debt rescheduling using the means they give out. A new car loan must not serve to replace an old car loan.
The car loan from a bank: the aspect of the bank
If you want to take out a car loan, you have two options for what type of bank you can go to. Since the classic banks took a long time to realize the important role that cars play in general social life, many financial institutions have started to set up their own financial institutions that are specialized in managing the purchase of their own vehicles.
These money houses are called car banks and often offer particularly cheap loans. But actually only for the purchase of a vehicle from our own production. For other vehicles, you have to go to the car bank of the respective manufacturer or contact a normal bank. In principle, all financial institutions now also carry out such loans from traditional banks.
The car loan from a bank: the special financing model
A car loan from a bank often offers a special financing model in order to be able to afford an expensive car: the so-called balloon loan. With this one only pays off half (or a little more or a little less) over the normal loan and the rest of the money remains for the final installment. To settle this, you can either sell your vehicle or get follow-up financing from the money house.