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Car loans

Credit for new cars

For most people, buying a new vehicle means fulfilling a long-cherished dream. Despite major savings efforts, very few succeed in saving a new car completely. The loan for the new car must close the funding gap. On the financing route, it is even possible to only drive new cars regularly.

Credit for a new car – the provider

Credit for a new car - the provider

The financing market for new vehicles is particularly interesting for many financial service providers. The prices of new vehicles are often very high. The financing framework required is correspondingly large. With low interest rates and long terms, online providers in particular qualify as partners for such a financing project. Unfortunately, many vehicle buyers are still blinded by the zero percent financing of the car banks.

Nobody has anything to give away. With zero percent financing, the car dealerships are asked to pay. You have to take the sponsored interest rate with you. Not infrequently, the credit default risk is at least partially transferred to the vehicle seller.

In the event of a possible vehicle recycling, the dealers sit in the boat of the car banks. The possible discount frame is correspondingly lower. The possible price reduction for dealer financing is only around five percent.

Whoever finances through the car dealer loses a large part of the currently possible cash discount discounts. Only financing outside the dealer chain enables a discount of up to 20 percent.

What is the right financing model?

What is the right financing model?

People who use their vehicle for a long period of time should also finance it in the long term. Long loan terms are the guarantee for small installments. A new car can be paid in up to 84 small monthly installments using a loan from the Internet. The key interest rates are historically low, a loan for new cars at fixed interest rates, which secures the current interest rate advantages.

Balloon loans or final installment loans are particularly suitable for people who expect a larger amount of money. A savings contract or life insurance could be due for payment. Whoever expects payment in 12 months, for example, finances the bridging period with this variant. The first 11 installments are small, the final installment is repaid from the savings contract.

Always driving a new car, how does this feat work?

Always driving a new car, how does this feat work?

Always being able to drive a new car is possible with a special loan for the new car, the three-way financing. It is a balloon loan. With him, the vehicle can be financed or returned when the final installment is due.

What appears inexpensive at first glance is often a mock pack of car dealers. If the monthly installments are small, the down payment is “eaten up”. In order to be able to always re-order a new car, the actual loss in value of the vehicle must be balanced out on an ongoing basis.

When it comes to the return, there are often discrepancies in the valuation of the end-of-life vehicle. Similar problems as with vehicle leasing are inevitable. The three-way financing is therefore neither a particularly cheap loan for the new car nor explicitly recommended.

All about loan collateral: secured and unsecured loans

Moving Estate loans are secured with real estate and generally with a first-rate mortgage. When making the decision to invest in debt or loan, it is important to understand the risks and be aware of how the security deposited for your investment works should something go wrong. Not all debts are equal, and this is generally reflected in the debt ranking system. In this blog article, we will look at the types of rankings that are generally found in the peer-to-peer real estate loan sector. For simplicity, we have listed them from the safest to the most risky kind.

 

Primary debt

Primary debt

Senior debt, also known as senior debt, is a debt that takes precedence over other “subordinated” liabilities. It is usually realized through real estate collateral that has a higher value than the debt and is sold in the event of a default or liquidation to ensure the repayment of the debt. In the case of Moving Estate loans, the senior debt is secured by a senior mortgage. And when we talk about collateral at Moving Estate, we mean real estate assets. This should be clear, as companies can also provide inventory, receivables or machinery as security (commercial lien). However, in the case of liquidation, only real estate has a high value.

In practice, this means that the borrower must go to the notary’s office and sign a mortgage contract with our security agent before we can provide him with the money. This mortgage is held until the loan is repaid in full. In the event of default or non-payment, this contract enables us to initiate enforcement proceedings and take possession of the collateral provided for the loan. These real estate collateral can then be auctioned off or sold to recover investor funds. This form of secured senior debt is considered the safest for investors, but conversely, it generally has a lower return than the riskier types of debt listed below.

 

Subordinated debt (mezzanine)

Subordinated creditors are usually provided with collateral other than a senior mortgage. This can range from secondary mortgages, equity in the borrower’s business to investments or other assets. Should a loan default, the subordinated debt holders will not be repaid until all senior debt obligations have been met. The higher risk profile of subordinated bonds means that investors can usually expect a better return on their investments. Moving Estate has few secondary mortgage loans on real estate.

 

Equity

Equity

A direct investment in a company with the intention of making a profit or income could be a good idea if the company or project is successful. But as soon as things go wrong, it is important to understand the ranking that shareholders have in the repayment hierarchy. When a company is liquidated, the senior and then the subordinated liabilities are repaid first. Only when these higher debts have been fully paid can the remaining funds or funds be distributed to direct investors or shareholders.

If you look at the latest news in the Estonian crowdfunding scene, then mostly subordinated loans and equity investments on our competitors’ platforms have failed, so the loss of capital is probably inevitable.

 

How does it work at Moving Estate?

When a borrower applies for a loan to Moving Estate, one of our first tasks is to do a thorough risk assessment. We look at the business plan, the borrower’s track record and analyze whether his project meets our strict profitability requirements. Once we are certain that our strict standards are met, we will review the value of the collateral offered. Since we are active in the real estate sector, the collateral for most of our loans is usually the property to be developed itself, although we also accept other properties.

Here we calculate the loan to value (LTV).

Here we calculate the loan to value (LTV).

Although a finished property may theoretically be worth USD 100,000, it would indeed be very risky to offer a loan for that full value. For example, we generally strive for an LTV relationship that we are certain will result in full capital raising at an auction.

The fact that we secure loans with a senior mortgage means that our investors are the first to claim when a borrower falls behind schedule and that they are the first to be able to recover their funds from the sale of the collateral. By adhering to this practice and keeping a close eye on the LTV, we have been able to operate without losses for our investors for over four years. In all cases where a loan is in arrears, we have been able to fully recover the funds. Since loan defaults are obviously burdensome for every investor, the security that guarantees a priority claim should let every investor sleep peacefully.

Property On Estate sells the collateral of its first defaulted loan

In October, Toome avenue development loan in the amount $ 224,000 reached its maturity date, however the borrower had become insolvent and was therefore unable to repay the loan. Property On Estate’s COO Andrew Wilsons comments that the bailiff agent has declared an auction process that starts on 14th of November 2017 and has a starting price of $ 313,280. The collateral is a 544.7 m 2 private house that is situated on a 1577 m 2 property in Nõmme district Tallinn. The collateral has been valued by an accredited valuation company Life Estate Company in the valuation of $ 440,000. The auction can be found on the following link.

Taken possession of its first defaulted loan’s collateral and has started the sales process to regain investors’ funds. 

“Toome avenue development loan is the first loan among all facilitated 220 loans for 3 years that has been declared defaulted, however a good thing is that our risk model is efficient and investors’ interests are covered. During the entire process, Property On Estate’s representatives have been in constant contact with the borrower who remains fully cooperative. The borrower has the chance to repay all debt and regain control over the property before the auction has ended, ”Wilsons adds.

How to make and have a growing investments

money loan

As Wilsons explains, the first default evidently illustrates the reason behind Property On Estate only facilitating property-backed loans. “In our current portfolio, the average loan to value ratio is 58%. This means that in case the borrower becomes insolvent Property On Estate has a strong chance to regain all investors’ funds through selling the collateral property. In this particular case we have informed the Property On Estate security agent and the selling process has been taken over by our partnering bailiff agent. Property On Estate team is confident that the proceedings from the sales process will be sufficient to cover the entire cumulative debt. “

Toome avenue development loan was funded on 28th of October 2015 and the loan was financed by 294 investors. The loan collaterals are a private house in Nõmme, a 6.26 hectare property in Keila parish and a 6.31 hectare property in Keila parish.

 

The sales process of the collateral – how does it work?

money saving

The public auction will be held by the bailiff on the www.Investmentslife.com.ee platform starting from 14th of November 2017. The interested parties have 20 days to register for the auction after which the bidding process lasts for 5 working days. Additional information about the collateral property can be obtained via email buroo.sepp@taitur.net and the same contact can be used to arrange a personal inspection of the property.

The person who wishes to participate in the auction bidding process must register on the Investmentslife.com portal and make a prepayment of $ 5000. The prepayment will be repaid to all participants who are not the winners of the bidding process the day after the auction has ended. After the auction has successfully ended, a notice will be forwarded to the E-land Registry and a new ownership will be established. The collateral will be released of all transaction prohibitions. All funds will be transferred through the bailiff agent and after the end of the auction process the buyer has 15 days to make the payment. The process will be stopped should the borrower pay all cumulative debt before the auction process has ended.

Overview of the problematic loan portfolio

The new year is now in full swing and we have put together our first overview of the problematic loan portfolio in 2020 for you. In addition to the statistics for the fourth quarter, it also contains some important updates from the current month. So far, crowdfunding funding has flourished under the good conditions of economic growth and no major crisis has yet occurred. However, the first platforms in Europe are now in bankruptcy, some investor funds have been lost and fraudulent activities have been uncovered in recent weeks. It is now all the most important to be aware of all associated risks when investing and to exercise special caution.

Carefully pre-analyzing the platforms and projects that you are considering for a potential investment.

As the market leader, we have an additional responsibility to work closely with regulators in all countries in which we operate and to ensure that the industry is healthy and fit for the future. Europe-wide rules for crowdfunding should come into force at the latest in 2021, according to which all countries of the Union will find the same conditions for the registration and operation of crowdfunding platforms. Until then, the sector in Estonia is self-regulated through the “crowdfunding best practice”, which corresponds to the European regulatory principles. The purpose of the crowdfunding best practice initiative is to support market players in effective self-regulation and to strengthen trust and transparency in the industry. Astro Finance was also awarded the FinanceEstonia Best Practice Label.

 

Astro Finance loan portfolio

Since 2014 and to date, Astro Finance has financed 1,246 loans, the amount of which exceeds $ 180 million. Of these, 560 loans with a total of $ 87 million have already been successfully repaid to our investors.

There are currently 21 individual projects and 42 delinquent loans (in various loan levels) worth $ 6.4 million in the Astro Finance portfolio. There are no significant changes in the portfolio structure by country – Estonia continues to be responsible for most of our loan defaults (since this country’s overall portfolio is the largest), followed by Latvia. In other countries in which we operate, no loans are currently outstanding.

 

Loans Obtained

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There were no capital losses for our investors in the fourth quarter of 2019 or January 2020. The current current average loan return is a solid 10.9%. Our recovery speed is exceptionally high and from the time the credit default was declared, we got investors’ money back on average in five months

In the fourth quarter of 2019 and in the first month of 2020, the number of loans we received almost doubled (from 11 loans to 17 loans). The total amount of the loans collected reached USD 3.2 million. Loans worth USD 0.6 million were recovered in January 2020 alone.

 

Open communication

money saving

In addition, we learned from the bailiffs that until January 31, 20, the collateral for four offending loans had been sold at auctions in Estonia and Latvia. We are now busy with the official process, in which the amounts paid are transferred to the security officer and from his account to the accounts of our investors. There was no loss of capital on these four failed loans and the exact rate of return is now calculated after deducting the costs associated with the process and other related costs.

However, this success does not allow us to sleep peacefully – the work continues. For example, our entire risk team is actively looking for buyers to secure our non-performing loans. We have also signed cooperation agreements with debt collection agencies and law firms in all of our countries of operation and are in the process of concluding more. As we are more than just a service company, we have also improved our communication (including updating credit) regarding failed and late loans. Investors should expect an update on a failed loan on our platform at least every 35 days.

Credit for a car – it’s that easy.

 

These are numbers that underline how important the cars are for the Germans. There are 55 million vehicles on the road in Germany (16 percent new vehicles), and around six million cars are manufactured in the Federal Republic every year. This means that there are more than 500 vehicles per thousand German residents. More than one in two Germans owns a car and even more dream of buying one. This is usually done through a loan for a car.

What is a loan for a car?

What is a loan for a car?

In theory, any loan can be taken as a loan for a car unless its purpose is clearly different. But if you want to have the cheapest possible loan, you should take a so-called car loan. These are special purpose loans from banks that they issue on condition that they are really only used to actually buy a vehicle. Any other use is explicitly prohibited. Because the Germans have such a special relationship with their vehicles, practically all banks offer corresponding loans. If someone wants to have a car of a special brand, they can also contact the car bank of that special provider and apply for a loan there.

A loan for a car: the specialty of financing diversity

A loan for a car: the specialty of financing diversity

The special aspect of car loans, that is, car loans, is that there are more funding options than a traditional loan. So-called balloon financing, which is often also called final installment financing, is particularly popular. With this, you pay off only a fraction of the normal loan through the installments.

It is usually around 50 percent that are repaid in this way. The rest of the money is saved for the final installment, which of course is immensely high. When it comes to paying the final installment, the borrower has the choice: he can return his vehicle and repay the final installment, he can simply repay it (if he has the money) or he can also pay it via follow-up financing.

Requirements for a loan for a car

Requirements for a loan for a car

Basically, a person does not have to have any special requirements to get a car loan that go beyond the requirements for other loans. It is important that he has sufficient creditworthiness (meaning that the income is high enough) and that he does not have a negative entry in the protection association for general credit protection.

In both cases, the hurdle for a car loan is actually somewhat lower, since it is a “good” loan, since the car is used to acquire a specific equivalent for the money.

Motor vehicle insurance comparison.

Car insurance absolutely necessary

Car insurance absolutely necessary

If you want to register a car with the respective vehicle registration office, in addition to the vehicle documents and your ID, you also need proof of vehicle insurance. In the meantime, you can use the simplified procedure and only receive a so-called eVB number from the respective car insurance company, with the help of which the registration office immediately receives all the relevant data that it needs to register the vehicle. If you cannot prove insurance coverage, you will not be granted the desired vehicle registration. With so many providers, it is not difficult to find an insurance company, but there are huge differences in the individual tariffs. Insurance premiums vary depending on the brand, model, age and previous mileage.

Save up to 850 USD a year with your car insurance

Save up to 850 USD a year with your car insurance

But the contributions also vary considerably from provider to provider. Therefore, a car insurance comparison is always worthwhile, which clearly shows the individual advantages and disadvantages of the providers. When comparing motor vehicle insurance, it is crucial whether you want partial or fully comprehensive insurance for your motor vehicle. Each car insurance company then determines the contribution that will be payable annually, semi-annually, quarterly or monthly. The cheapest option is usually the annual payment. By direct debit from the current account for the unemployed or by transfer, the policyholder pays the motor insurance premiums easily and simply.

A car insurance comparison is also worthwhile in between

A car insurance comparison is also worthwhile in between

Once a suitable car insurance has been found and the vehicle has been approved, many vehicle owners no longer take care of the car insurance. Since there is permanent insurance coverage when the agreed premium is paid, many stop thinking about car insurance. However, car insurers often change their premiums and can adjust them flexibly. Thus, a car insurance comparison for vehicles that have already been registered is definitely worthwhile. The car insurers also have to fight for their customers and prefer to lower the premiums a little rather than losing their existing customers to a competitor. As with a loan comparison for the unemployed, you can note the respective advantages, but also negative aspects of car insurance and compare the prices at a glance.

This can be helped, for example, by insurance calculators or customer reviews, which can be found on the websites of the individual providers. If the car insurance comparison reveals that another provider offers the same insurance protection at a significantly better price, you can confront your previous car insurance company with it and possibly move them to adjust the tariff in favor of the customer. Otherwise, changing insurance will save you money. If you cannot pay the annual premium for car insurance at once, numerous credit institutions offer instant credit for the unemployed. Whether as a car loan for the unemployed or as a loan for the unemployed without private credit checker, the list of providers to be found on the Internet is long, but here too, as in every industry, there are some black sheep.

Taking out a loan for car insurance?

Taking out a loan for car insurance?

After completing the car insurance comparison, you have found the cheapest car insurance for your vehicle, but the insurance premium is far from being paid. The cost of car insurance varies so much depending on the brand and model that a small fortune may be required for annual insurance coverage. However, since car insurance is essential for every vehicle owner, nobody can avoid paying the car insurance premium. In financial emergencies, for example, the Maxcredit unemployment loan or the Trucredit loan without private credit checker information helps to provide you with the short-term liquidity you need to pay car insurance. You can also borrow the necessary money in the form of a loan using a credit intermediary, such as a Good lender loan, in order to apply for the necessary insurance cover in good time and to be able to pay the contribution to car insurance.

In addition to the unemployment loan, a credit card for the unemployed can be applied for, if this is required or desired. However, it is not relevant for the payment of car insurance. Before you decide to take out a loan, you should first use a car insurance comparison to determine whether it is necessary at all. Due to the various payment methods, car insurance companies generally offer plenty of flexibility.

When to use a bridge loan?

On the current real estate market, it is quite hard to achieve a situation where it is possible to use the funds gained from the sale of a property immediately with the goal of financing the purchase of new real estate. It is common that the dates just don’t match and the sale of the old property takes more time than predicted. An even more difficult situation occurs when a person wishes to buy a new property before the sale of the old property is completed. In this situation, it is wise to use a bridge loan to cover the gap between the two dates and find a solution. This article will give further details about the uses of a bridge loan.

 

Bridge loan is a short-term financial instrument

Bridge loan is a short-term financial instrument

Which helps entrepreneurs “make a bridge” in order to finance necessary purchases before the sale of property. For a borrower this is a way to lower risks and it gives time to clear up the capital structure or plan the sale of real estate.

Bridge loans have risen in popularity lately and find use on real estate markets all over the world. Real estate developers mostly use a bridge loan to cover short-term capital needs and buy new real estate or develop existing property. It is often used to buy property, renovate it and then sell it quickly for a profit. Old property is used as a security for the bridge loan and the loan size is dependent on the value of the asset. The loan is returned from the funds gained from the sale of the underlying asset during a period previously agreed with the loan originator.

 

How does a bridge loan work?

In order to demonstrate how a bridge loan works, we bring in a short example.

Let’s say that a developer that wishes to sell existing property, has found a buyer and agreed that the funds from the sale will be transferred on the 10th of November. At the same time, the developer wishes to buy property from the bank, but has agreed to make a down payment on the 30th of October, which is 11 days earlier. In that case, the borrower turns to a credit provider that gives out bridge loans. The credit provider then takes the developers existing property as mortgage for the loan and finances the purchase of the new property.

There is a saying about bridge loans that the bridge should be long enough to reach the other side of the river. This means that if the borrower thinks he can sell his property in 3 months, the bridge loan should cover capital needs for at least 6 months. Usually, the interest rates for a bridge loan are higher than what banks offer because a bridge loan is a high risk loan for the credit provider. It is common for bridge loans to have 8% and up interest rates, with additional fees to the borrower.

A bridge loan can be 3-24 months, although a 12-month period in order to flip a property is the most common. The maximum loan-to-value is 75%.

 

Use of bridge loans has increased on the global real estate market

bridge loans

And thanks to strict lending rules in commercial banks, which leave developers to search for alternative financing options. Crowdfunding helps developers get the necessary capital for their business and at the same time allows investor to invest in high-reward projects. Bridge loans help boost the economy and enable starting real estate developers to reach their goals. In the near future, the trend will surely continue and the number of alternative financing options on the market increases every day.

Car loan calculator ➤ Comparison of car loan.

Buying a car with credit or leasing?

Buying a car with credit or leasing?

If you have the money in cash or in your bank account or savings book, you should use it and not use a car loan or car leasing. If you don’t have the money to buy a car or don’t have all of it on the high edge, you are spoiled for whale and often have to grapple with the jungle of leasing offers and car loans. Warning – even if you don’t want to spend too much time on the subject of fundraising, it is really advisable to take at least some time for the information below regarding leasing & car loan.

Unfortunately, it’s not easy to make a blanket statement about whether a car loan or leasing is cheaper. The mere comparison of the monthly loan or leasing rate can only be used as an indicator to a limited extent. Both credit providers, such as direct banks and leasing companies, are obliged by consumer credit regulation to report the total burden and the so-called effective interest. These are the two key figures that can actually be used to compare car loan offers with leasing offers.

The basic difference between a car loan and a car lease is that you usually do not acquire ownership of the car when leasing . With a car loan, on the other hand, you actually own the vehicle.

Another advantage is the bargaining power over the car dealer. As a buyer who takes out a car loan from a direct bank and can then pay the car directly at the car dealer at a higher price, you have a far better bargaining position and can usually get a better discount because the dealer receives his money immediately after the contract is signed.

Conclusion – credit or leasing

If you want to change the car every three years anyway and do n’t want to keep it , leasing can certainly be a sensible option. However, if you would like to keep the car for longer, a car loan is to be preferred. Another advantage of a car loan is that you can negotiate the purchase price of the car directly with the dealer, which is often not the case with leasing.

In addition, absolute caution is advised when it comes to direct financing offers from car dealerships. Sure, handling is extremely convenient here. Nevertheless, you should always compare a financing offer from a car dealership, whether credit or leasing, with other car loans or financing options. Often, a potential buyer in the dealership is also told that there is only a certain discount on the car if the loan or leasing contract is actually processed through the dealership. In addition, the alleged “super special offers” are also limited in time, which the dealer only wants to influence in your purchase decision.

Warning: possible stumbling blocks in car leasing

The residual value is a very sensitive issue in car financing and at the same time the greatest uncertainty factor. In the calculation of the leasing rate, which is why it always appears very cheap in the first step, it is assumed that the vehicle can be sold at a certain value, namely the residual value, at the end of the term. The higher the residual value is assumed, the lower the leasing installments that you have to shell out. When calculating the residual values, however, the leasing companies do not let themselves be looked at on the cards.

A test by the Chamber of Labor showed that depending on the leasing company or bank, the residual value was assumed to be between $ 4,000 and $ 8,800 for an identical vehicle. It is logical that the bank that offers a residual value of $ 8,800 can offer cheaper leasing rates. But the bad awakening usually follows at the end of the term.

As a lessee, you are generally liable for the difference between the residual value (which the leasing company accepts) and the actual market value at which the vehicle can be sold at the end of the term. As a lessee, you may have a juicy additional payment at the end of the term. Attention: purchase right at the end of the lease term.

Make sure that you are granted a purchase right in the lease contract at the end of the term. Often this is not granted by leasing companies, mostly for tax reasons. If you really only want to use the vehicle, leasing can also be an option. 

The third, often underestimated sticking point in leasing contracts is the prescribed mileage, which you are allowed to drive at maximum during the term. It doesn’t take much, for example a job change to a job that is suddenly 30 km away, and the limited mileage that is defined in the leasing contract will no longer be met. Even then, you have to pay a surcharge for the kilometers traveled at the end of the term.

These three stumbling blocks do not exist for car financing through credit. With an auto credit, you are usually the owner of the car, without an assumed residual value, and thus without the associated risk. In addition, you have no KM limitation.

Another advantage of car loans is the free choice of the scope of insurance. Compulsory comprehensive insurance is almost always mandatory for leasing contracts.

Car loan from the house bank

Car loan from the house bank

Of course, branch banks usually even offer several different vehicle financing options. However, financing via your own bank is usually associated with at least two dates and a longer internal lending process. In addition, Austrian banks are of course looking for new sources of income in order to compensate for the poor interest rates and at the same time comply with the tougher EU requirements. Decide for yourself based on the criteria presented above whether you would like to take out a leasing contract or a loan or a loan to finance the car purchase, and then do not deviate from this point of view – no matter what “exciting product” the bank advisor only have “a few days” and “exclusively for XXX-Bank customers” at hand.

Financing through car dealerships

Car dealerships have discovered not only the insurance business but also the financing business due to the increasing competition and the low margins in recent years. Therefore, the car dealerships often work in cooperation with your house bank, or they also offer financing offers from the respective car manufacturers.

Depending on the sales and production volume, it can actually happen that car manufacturers make really attractive leasing or financing offers available for a short time, but this is more the exception than the rule. However, the temptingly low leasing rates or exciting sounding third-party financing or “zero percent financing” are often more expensive in the end, since financing and special promotions are usually only possible in combination with the purchase at list prices. In most cases you will already lose approx. 15% room for negotiation. Then there is the big question of whether financing from the manufacturer is actually cheaper.

What car can I afford?

What car can I afford?

Our car loan calculator is designed so that you can switch between your desired amount and the monthly installment in the second field. So you can either specify that you want to take out a car loan of over $ 25,000, for example – that is, define a fixed loan amount. The second option “monthly installment” gives you the possibility to define a maximum credit installment that you can afford. Depending on the loan term and interest, you will then receive the maximum loan amount per bank.

Buying a car on credit often tempts you to choose a more expensive model or order the better equipment due to the low monthly loan installments. However, when choosing the model and equipment, pay attention to higher running costs with more horsepower . In addition, expensive cars are often more expensive to maintain and repair.

A higher insurance premium, a higher engine-related tax, or the more expensive tank filling are often additional costs that are often neglected when buying a car on credit. So think carefully about what equipment and, above all, what motorization you actually need, because not only the interest and loan repayment, but also the ongoing monthly costs should be taken into account when financing the vehicle.

Compare car loans online quickly and easily

In general, if you want a cheap car loan, you have to get a lot of offers and compare them accordingly – using the right key figures. To make it easier for you to compare the different loan offers, we have made our car loan calculator available online. Take your time and really get an online offer from the different direct banks in our comparison calculator – after all, you don’t buy a new car every day, do you? The credit request via our car loan comparison takes maybe 2-3 minutes per direct bank.

How can I buy a car despite a private credit checker entry?

New cars and high-quality used vehicles cost a lot of money these days, most customers can hardly pay these prices from their savings. For example, many car buyers need a loan that is offered by the banks of the car manufacturers as well as by independent credit institutions at acceptable interest rates. However, a good credit rating is almost always the basic requirement for such a loan.

This is checked, among other things, by obtaining information from private credit checker. If there is a negative entry, many banks refuse to grant loans from the outset. For this reason, consumers who have had a negative impact on private credit checker find it difficult to buy a car despite a private credit checker entry.

Financing the car purchase despite private credit checker entry through the car dealer

Financing the car purchase despite private credit checker entry through the car dealer

The vast majority of car manufacturers have their own bank that offers cheap credit to finance the purchase of their brands. These loans are offered in the sales talks by the customer advisor. In many cases, you can get a loan here even with a negative private credit checker entry, so that it is possible to buy a car despite a private credit checker entry.

It is advisable to actively address the problem yourself, because the customer advisor has usually already had experience with car buyers who have a negative private credit checker. He will then often advise you to make the highest possible down payment to increase the likelihood of getting a loan. When financing the car purchase through the group’s own bank, it must be taken into account that the dealer cannot grant any major discounts on the list price of the vehicle.

Financing the car purchase despite private credit checker entry through an online bank

Financing the car purchase despite private credit checker entry through an online bank

Experience has shown that online credit institutions are often more willing to finance a car purchase despite private credit checker. A consumer loan can be applied for without any problems. It differs from a typical car loan in that the borrower is free to use the loan. In addition, the vehicle letter does not have to be deposited as security for the bank. There are some Internet banks that advertise that they do not obtain private credit checker information at all before granting a loan. Most of these credit institutions are based abroad and conduct their business in Germany entirely via the Internet.

Of course, they do not forego checking their customers’ creditworthiness. For this purpose, the applicant must provide extensive self-information about his economic situation. In addition, documents such as pay slips or tax assessments are usually required to be sent. Anyone who can prove that the monthly incoming payments are sufficiently high for the proper loan repayment has a good chance that they will get a loan so that they can finance the car purchase despite private credit checker entry.