For many who want to have a car financed, the question of financing arises. Many choose an installment loan for a car, because hardly anyone can afford a car out of their own pocket. This is also known to the banks and comes with different offers. The borrower should be careful, because not every offer is really cheap. http://www.nocensor.org/bad-credit-auto-loans-bad-credit-we-offer-instant-auto-loans-bad-credit/ for clarification
What should be considered?
With an installment loan for a car, the conditions can be very different. So the interest rates are just as different as the offers. Some offer a loan for zero percent funding. These offers in particular should be carefully observed. It is not uncommon for there to be hidden costs that make a loan more expensive than initially thought. The shorter the term of the loan, the lower the costs. It would be an advantage if a sum had already been saved and only part of it had to be financed. This is the best way to save costs.
Credit with the house bank
Anyone who applies for an installment loan for a car from their house bank has a great advantage if they appear at the car dealer. The loan amount is transferred entirely to the checking account, so that the vehicle can be paid in cash at the car dealer. Anyone who appears as a cash payer enjoys the advantage that they get many discounts. For example, the winter tires can be traded out or other extras for the car. The loan must then be paid to the bank in installments. The monthly rate is set in advance with the bank so that the borrower knows exactly what the costs are each month.
Credit from the auto bank
Many car dealers work with car banks. So the loan application can be made directly to the dealer. However, there will be no discounts, because the offers often apply to a specific vehicle model. Interest rates can vary widely and should be compared to the house bank’s. The monthly installments are automatically debited from the car bank, just like at the house bank.
What are the requirements?
In order to apply for an installment loan for a car, certain requirements must be met. For example, the applicant must have a fixed salary that is attachable. In order to be able to check the income, the pay slips and the bank statements must be presented. The bank interviewed Credit Bureau to determine its creditworthiness. If you have no work and therefore no income, you will not be able to apply for an installment loan for a car. The applicant must be of legal age and must not work during the trial period.