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
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?
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 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.