If you want to fulfill your dream of finally owning your own vehicle, you usually take out a car loan. These are earmarked loans, which banks issue directly with the stipulation that they should serve to finance a vehicle and only that.
For certain car brands, the car banks of the respective brands give the best loans. The car loan is no exception.
About the car loan in general
The car loan exists in two variants: with target financing and with basic financing. The website also gives you the opportunity to compare the two models again. There is also a special used car solution, which, however, is basically based on basic financing and therefore should not be presented in detail here.
The car loan with target financing
Target financing is the classic offer that practically every bank has to enable its customers from the weaker income brackets to buy an expensive vehicle. The model is usually called final installment financing or balloon financing. You save about half the loan amount for the final installment, which causes it to inflate like a balloon.
The normal rates, which can be chosen between 18 and 60 months, are getting smaller and smaller. After the time has expired, you have the option of returning your vehicle, selling it, or paying the rest of the money through follow-up financing.
The car loan with basic financing
The basic financing is a normal installment loan, which works with installments of constant amounts. The loan period ranges from twelve to 120 months.
The advantage of this model: As soon as you have paid off all installments and the loan has been paid in full, there is no longer any doubt that you are actually entitled to the car or all ownership claims on the vehicle. The loan has now definitely been repaid in full.