If a new car is needed, but the bank account is at low tide, good advice can sometimes be quite expensive. How should the car be paid when there is no money? Financing for the car is needed. Which paths can be taken in such a case and what is the cheapest alternative is to be considered at this point.
Financing for a car bank or car dealership?
There are two ways to finance a car. On the one hand, you can take out a conventional installment loan from almost every bank in order to have the money you need at your disposal. In the case of an installment loan, the amount of the loan and the duration of the payment can be freely selected. If you compare the available offers well, you will certainly find an installment loan with very low interest rates. The house bank should always serve as the first port of call, since it can usually offer its customers quite attractive offers.
If you don’t find anything suitable, a look at the Internet is worthwhile. Many online offers have a lower interest rate than those offered by banks with branches.
However, financing for the car can also be run directly from the dealership. These usually work with banks that offer very cheap financing models. With a very good credit rating and a corresponding income, it can even happen that you are offered a financing model without interest. However, certain conditions must be met for this. In addition, a larger residual rate is sometimes due. All these things should always be clarified very carefully before signing the contract, so that there are no misunderstandings afterwards.
Which bank has best offer?
A comparison should be carried out to determine which financing offer is the best. Each bank and also the car dealer will advertise their own offer as the “most attractive”. However, you shouldn’t be blinded by it and decide for yourself what a good option is. The best way to do this is to compare the effective interest rate. This really includes all costs and makes it possible to draw up an exact invoice in this regard. Because only if you know what the credit actually costs in the end, can you assess whether it is worthwhile or not.