In Germany, a car is no longer just a commodity, but much more. It is a status symbol and testifies to success and power. You are more socially acceptable when you drive a new model of a car. Just to cope with this social pressure, many cars are bought these days. However, most people do not have the financial resources to meet these expenses. That is why more and more people are looking for alternatives and a cheap car loan is becoming interesting. See satori34.com for the scoop
Cheap car loan from a bank
Many banks have recognized this development and are trying to generate new sources of income with various loans. To do this, however, you have to understand the relationships between loans and banks. A bank is an economic company and wants to make a profit. To make a profit, there is interest. This interest is payable on each loan and the bank makes a profit. In order to make as much profit as possible, as many loans as possible must be granted. Of course, this is only a part of the banking business, nevertheless the banks try to poach the credit applicants from each other by offering particularly low interest rates.
Getting a car loan from a bank is actually not that difficult. All you have to do is obtain positive Credit Bureau information and, in the best case, also have various assets, such as real estate or condominiums. In this case, you can assume that you will get a loan. It becomes more difficult if you are self-employed or a freelancer and at the same time subject to high income fluctuations. In this case, a loan from a bank becomes very unlikely. Therefore, you should always first contact the bank of trust, where you have had your account for years. Through personal contacts and reserves, you can get a loan.
Cheap car loan directly from the dealer
The dealers also lure buyers with direct financing. These loans are nothing more than loans granted by an intermediary bank. In many cases, you do not even have to bring Credit Bureau information or proof of salary to receive such funding. However, many retailers require a high down payment to get a cheap loan. You should also check every so-called 0% financing. The fine print of many financing contracts says that with many of these 0% financings, an interest rate hike will become due in the following years and so a cheap loan for the car is only really cheap for a short time. But there are also financings where you have to pay very low interest rates through high rates and short terms. However, you have to have a high average income and have several collateral.
Another form of cheap car loan is online research. There are numerous financing offers on the online market. However, you should compare them and also check for seriousness. Among many offers, there are unfortunately a lot of black sheep. That is why the extensive analysis of the various offers is of the highest priority when it comes to credit.