Interest on car loan – instant loan online
October 6, 2019
This is the result of the consumer credit index of GfK, in which the purchase of a used car is the second most common reason for borrowing. Car finance calculator online / Car loan from the dealer / Calculate alternatives to auto finance and compare / independent and free online calculator for your personal financial planning. The customer has the choice between a dealer financing and a dealer-independent installment or a car loan. So, who wants to borrow, should not speculate on falling interest rates. Anyone who finances a new car and compares offers will focus on the interest rate of the car loan.
Car loans are now cheap.
Against this background, new car prices seem to have fallen as much as they have not done for a long time. The interest rates for car loans are considered to be particularly favorable nowadays. In the months of July and July this year, a discount of up to 46% on a new car should have been granted. At the same time, the effective interest rates for auto loans have fallen to their lowest level in four years, according to experts at the Internet loan portal Centiloan.
In Germany, motor vehicles have been financed since the beginning of the year at an average interest rate of less than 3%. With a good credit rating less than 2 percentage points are possible. The car dealerships would often advertise with even lower interest rates. It may have been worth taking a car loan and paying off the home loan if the home loan is already a bit longer.
Concurrent comparison: According to the market research institute for financial services, the traditional installment loans of a house bank with a term of 36 to 60 years are charged with an average interest rate of around 4.5 percentage points. These reductions are possible because many car brands offer not only the usual discounts but also scrapping and environmental bonus for diesel end-of-life vehicles.
According to Smart Centiloan alone, interest rates on car loans increased by an average in the month of August and September, compared to the same period of the previous year up to and including the month of June. Four years ago, a car loan cost an average of 4.75 a year. Comparison: According to VHF, the share of classic installment loans in January 2013 was almost 7%. H., early 2007 at around 11 BCE. H..
But even when buying a car, an adjustment always pays off. Because often exclude the largest discounts for a car and the cheapest loan interest rates of the car banks, even if price cuts are usually always a matter of negotiation. But not only when buying a car.
Car loan from the dealer
With a car loan from a trader, you usually pay low effective interest rates. You must have waived the cash discount deduction. The car loan of the dealer can thereby become the cheapest financing, if the new vehicle cost more than your own money and the seller does not grant you a discount anyway. This depends not only on the age of the vehicle (there are good discounts, especially for new cars), but also on the market situation.
The dealer’s car loan initially requires an upfront payment, which is usually 20 percent of the list price. The effective interest rates for car loans are often lower than for installment loans of the own bank. The monthly installments themselves are also lower, because with a car loan, you only pay the amount of your car’s impairment over the period of the financing and, if necessary, a higher graduation rate (balloon financing).
If you want to continue the vehicle afterwards, you pay the remaining value with a large additional payment. If you only want to rent the vehicle, you do not pay the last installment, but bring the vehicle as a counterpart to the dealer. In a direct comparison, car leasing of course, cheap. Please note, however, that you no longer have the vehicle in your possession – unlike any other form of financing in which the vehicle will later be yours.
She wants to buy a new car. She looks at a small vehicle, which is available for 9,300 USD from the dealer. Therefore, the house bank advises a installment loan: 36 equal monthly installments at 5.9 percentage points effective annual interest. She could pay the merchant with cash and get a discount.
However, as the business is currently running very well, the retailer does not want to offer a discount. The vehicle was already very cheap anyway. He could top that with a full tank, but with the best will in the world, he can not go down. The dealer, however, grants her a car loan: She can co-finance the vehicle in 35 monthly installments at only 2.9 percentage points of effective annual interest.
In addition, there is a security deposit of USD 2,000 and a final installment of USD 4,600 at the end of the contract period when she takes over the car. And what is cheaper without discount? The installment loan from the house bank or the car loan from the dealer? To calculate this example, enter the above numerical values in the calculator for car finance as follows: Calculation rate: Enter the numbers of the individual scenarios: Effective interest rate: 2.90% pa Effective interest rate: 5.90% paff.