If you want to take out a loan for a new car, you have several options. He could not only contact a branch or direct bank, but also his car dealer. The latter variant has many advantages. It is not uncommon for car dealers to lure with extremely cheap loans that can go as far as zero percent financing.
Nevertheless, it is advisable to make a comparison before borrowing. This is the only way for the customer to be largely certain that the loan he prefers for a new car really is a low-cost and low-interest loan.
Bank loans can basically be divided into general installment loans
Most bank loans can basically be divided into general installment loans and special car loans. When financing a new car, it is generally irrelevant which type of loan the customer chooses. Only the amount of interest and the length of the term should be decisive.
Since an installment loan is available for free use, it is irrelevant for the bank whether the customer uses it to finance a car or another consumer good. Many car dealers offer their customers high discounts on the purchase price. However, the most important prerequisite for this is that the customer pays the car in cash. With a bank loan that is paid out in full after the application and approval, this would be easily possible.
There are numerous reasons to take out a dealer loan.
This primarily includes the fact that interest rates are usually very cheap and in some cases are even completely eliminated. Zero percent financing is not only limited in time, it is also tied to a specific model or a specific car brand. In addition, anyone interested in a loan for a new car should be aware that even with zero percent financing, regular monthly installments must be paid and financed with your own income.
For this reason, the monthly installments should be chosen so that they can be easily managed in any case. The car bank or the car dealer will carry out a corresponding check here. If the loan for a new car is approved, it would be very important that the agreed loan installments are paid regularly. If payment arrears persist, it could quickly happen that the car dealer pulls in the new car and, in the worst case, uses it elsewhere. The main reason for this is that the car remains the dealer’s property until it is fully paid.