Credit car | Credit motor vehicle
July 17, 2019
Auto loan | Nord-Ostsee Sparkasse Example: 5.99% annual percentage at 7,500 EUR net loan amount with a fixed lending rate of 5.84% pa, duration 60 months. Lender: Nord-Ostsee Landessparkasse, Südgraben 8-14, 24937 Flensburg.
Rely on the longtime expertise of your bank in the lending business. You agree on a certain time and can come up with constant monthly payments. You choose your duration and the loan amount and decide which vehicle you will drive in the near future.
Credit application requirements: Example: 5.99% annual percentage at EUR 7,500 net loan amount with a fixed lending rate of 5.84% pa, duration 60 months. Lender: Nord-Ostsee Sparkasse, South Trench 8-14, 24937 Flensburg.
As soon as you decide to buy a new car, you are usually faced with deciding how to pay for this new vehicle. In principle, it is possible to conclude a motor vehicle loan at your own bank or at a car bank directly through the dealer. Leasing is certainly a potential financing option for some people, although it is only of interest to the self-employed from a tax point of view.
Often you are faced with the question of whether you take a car loan at your own house bank or whether you want to take the loan directly from the dealership. The dealer’s loan, at first glance, often appears to be much cheaper than the “normal” house bank, as the car banks often advertise in very favorable conditions, often with interest rates of less than five.
When comparing the two service providers Autobank and household bank one must not overlook that one can still get a discount when buying a car, which is in many cases at about 20 percentage points. However, this discount is only granted if you can pay cash at the dealership. This is only possible if you do not take the loan from the dealership but from your “own” custodian bank.
In sum, it often turns out that the car loan of the doorstep bank is cheaper than the mortgage lending, even if the interest rates are lower here. The motor vehicle loan appears almost without exception as installment loan. Ie. The customer is first credited with a loan amount that he can use to co-finance the vehicle purchase.
Get monthly rate of your car loan
This amount is subsequently accrued by calculating the agreed interest rate per term year from the loan amount. It is not uncommon for the lender to charge a one-time processing fee. If you now add the loan amount, the interest for the total duration and the possible processing flat rate and divide the result by the duration in months, you get the monthly rate of the car loan.
In most cases, the lender of a motor vehicle loan would like to obtain a guarantee from the borrower. The transfer of ownership as collateral naturally gives the borrower ownership of the car, but the lender remains the owner of the subsidized vehicle until full repayment of the loan. The delivery of the vehicle registration letter to the lender also prevents the borrower from reselling the loan without the knowledge of the lender.