If the dealership does not offer its own financing option or only offers poor conditions, a car loan from the bank can be the better financing option. The money from the bank puts the buyer in the rank of cash payer. Car dealers like to see that, because - unlike with financing - money comes into the cash register immediately. If cash is waving, many dealers are generous and are more accommodating to buyers when it comes to the vehicle price or they offer additional free extras. The bottom line is that a high discount on the purchase price often brings more than lower interest rates for dealer financing compared to bank financing. The decisive factor is the total costs, i.e. the cost of the car plus the financing costs.
Requirements for obtaining a car loan:
House bank or online bank?
Not all banks offer car loans. When looking for a credit institution, RV buyers should pay particular attention to interest rates. These differ considerably from bank to bank. But there are also differences between branch loans and internet loans. Car loans in bank branches often cost more than on the Internet - the expensive branch structure has its price. In addition, some direct banks refrain from providing the vehicle registration document as proof of the earmarking of the loan. Read More
The following points are important when comparing conditions:
Benefits of online car loan
Bargain hunters look for a car loan on the Internet, which is best done via independent comparison portals such as biallo.de. The application and approval of the car loan are just as quick as in the branch thanks to the video identification process ; the money is usually in the account after a few days. Since these are purpose-tied loans, borrowers benefit from low interest rates.
Disadvantages of the car loan
If there are major repairs to the motorhome or if the costs grow over your head, you cannot simply sell the vehicle. If the car loan is earmarked, you first have to ask the financing bank. This is especially true if the bank has withheld the vehicle registration document and is therefore the legal owner of the vehicle. If the bank allows the sale, the borrower must be aware that the entire loan amount then usually has to be paid at once. You should therefore think in advance about whether the respective amount can be paid effortlessly. Because when selling a motorhome there is a risk that the proceeds may not cover the remaining loan debt. Then the missing amount has to be controlled out of your own pocket.
Reduce the loan installment for the motorhome by paying a deposit
In addition to the loan amount and the interest, the amount of the loan installment is primarily determined by the term. The following principle applies: the longer the loan term, the lower the rates. However, with a long term and a large number of installments, the total interest to be paid adds up. So don't set your rates too low. The opposite applies: Do not keep the installments too high so that you do not get into financial difficulties.