A car loan is a magic word for your dream car. You still dream of it, but now want to finance a new car. Then you are exactly right here on this page. Because we have analyzed the car loan market for you and present some of the best car loans in comparison.
Which bank has the best car loan? We have put together what is probably the most detailed test scheme for car loans and are testing all offers in six categories with a total of 37 test features based on current values.
The car loan index
Good Credit creates a monthly car loan index. At the end of each month, the average development of advertising interest, i.e. the minimum target interest, as well as the two-thirds interest rate on car loans are considered. The two-thirds rate is the maximum rate that two-thirds of all customers have to pay for a loan offer, as shown in the representative example of the bank.
For the car loan index, the monthly interest rate development of car loans within the past year is taken into account. The trends shown can support the creation of forecasts for future interest rate developments.
While the development of car loan interest rates has followed a falling trend over the past twelve months, interest rates have recently risen again, or at least remained unchanged, with the shorter review.
Are car loans always cheaper?
As a rule, the borrower does himself a great favor if he uses a special car loan to buy the car. This is due to the security thinking of the lenders.
So yes, often these loans are a little cheaper than personal loans. Because if the borrower gets into payment difficulties, the car could be a good pledge for the lender to pay the outstanding debts. A car represents a certain value, which quickly, but not immediately, loses value.
It is different from “normal” personal loans without a purpose: The money may be used for a long trip. Then there is nothing that a bank can use to pay outstanding debts. Maybe the new furniture was also bought. If they are assembled and show the first signs of wear, they are difficult to compensate for a loss of credit rates.
The car is protected by insurance. With new cars, almost always even with fully comprehensive insurance. This means that in comparison to a personal loan without a purpose, the bank usually has a counter value as collateral for car loans. Completely irrespective of whether, by the way, the vehicle letter was given as security or not.
The big BUT in the matter: It is not uncommon for banks and savings banks to use the same product for the personal loan and car loan sectors. In these cases, it is a marketing strategy that does not bring any particular advantage to the end customer. However, this approach is not harmful to consumers either.
Facts and figures about buying a car with a car loan
How do consumers most often finance their new car?
Financing a new or used car using a car loan is common today. This is also shown by the Aral study on the trends for buying a car in 2019. According to this, cash payment is still the favorite means of payment for Germans when buying a car, but is now closely followed by financing, i.e. car loans. According to the study, about one in three Germans buys their car on credit:
Germans take up more car loans
Even if a new lending business has recently grown due to increased consumer borrowing, this does not apply to auto loans. The volume of new business in car finance for private buyers fell by 0.5 percent in the first half of 2019 compared to the first half of 2018, and 1.6 percent for car loans to companies.
However, this is a very new trend that may only last for a short time. Up to and including 2018, the volume of new business in car financing has continued to grow in recent years, particularly as a result of annual growth in the purchase price increase.
What should you watch out for when comparing car loans?
When consumers partially or fully finance their new car, an affordable offer comes first (52 percent). The best possible interest rate comes afterward (37 percent). An uncomplicated conclusion of the loan is important for every fourth consumer.
This is where the banks featured in our car loan calculator come up trumps because their loan offers can usually be filled out completely online and in many cases can also be applied directly online using Good Finance. In banks that do not offer a video ident, the borrower cannot avoid going to the next post office in order to go through the posting procedure. But that was the end of it.
Who offers a car loan?
Regardless of whether new or used, very few car owners can pay for a vehicle from the postage account. Cars have now blossomed into an investment. It is therefore not surprising that two-thirds of vehicles registered in Germany are now financed. If we look at the interest rate situation in this country in the years since 2013, it hardly makes sense to save on a new car.
The loan interest rates invite you to finance the new vehicle. “Saving” is the order of the day. For consumers, of course, the question is where to ask for a loan. The path to the house bank around the corner, as it quickly becomes clear, usually turns out to be only the second-best solution.
Tips for buying a car and financing a car
When asked which car to buy, there are no model solutions. For some, a car is a cult object, for others, it is a mere commodity. What does the car mean for you? You should ask and answer these and other questions before buying a car. Our tips for buying a car and financing will help you.
1. What do I need the car for?
Should the vehicle only be used for fun or should several children be transported? Does the dog have to go into the trunk or does it need storage space for sports equipment? Even if the heart tends towards a mini – a lot has to be transported, the emotions should be left out.
2. How much money do I have available for car financing?
The next important point is the question of affordability. If the car is not to be financed, the maximum purchase price is based on the available credit. If financing is considered, the rate must not be so high that there is no money left for fuel and insurance. Here, however, a credit comparison calculator or a financing calculator helps to determine the ideal rate and thus the possible purchase price.
3. Car from dealer or private?
If it is a new car, this consideration does not apply. The only option left here is to look for a suitable vehicle at a local dealer or an online dealer. Against the background of the massive decline in the value of a new car in the first year of use, day registrations or annual cars offer an interesting alternative.