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Loan Calculator: Max. Purchase Price & Calculate Interest Online

Category : Uncategorized

Important to the loan calculator

  • Consider all cost factors
    Include interest rate adjustments, special repayments and other eventualities to get a realistic result.
  • Always use
    Unless already done automatically, you should always specify a purpose in your loan – this will often give you lower interest rates.
  • Use modernization loan for existing real estate
    If you are a property owner, you can finance minor repairs and refurbishments through this loan.

Banks and building societies are increasingly attracting your attention – the focus is often on mortgage lending. In the course of this, the institutes always give a representative calculation example, in which the conditions are included that ⅔ actually receive from all credit customers. However, this is not enough for a comparison because there is a lack of important information on fixed interest rates, the repayment installment, special repayments and the like. An important first step to finding the right loan for you is a loan comparison in addition to the loan calculator.

This is how the loan calculator works

This is how the loan calculator works

Building societies as well as banks generally use statistical data and empirical values ​​in order to assess you as a customer for mortgage lending. In addition, they set the interest rate predominantly on a credit rating basis. However, it often makes more sense to compare different providers and find the best financing for you – the Finance Calculator calculator will help you.

The loan calculator not only calculates the required loan amount for your building project: it also shows how expensive the purchase price of your dream property can be on the basis of the data given by you. The best way to use the Loan Calculator online is to have your financial situation fully reviewed to get a true-to-life result. With the help of the calculated maximum purchase price, you can start looking for a suitable reality – however, you should not sign the contract until the mortgage financing has been completed.

An advantage of the loan calculator is that you can compare over 500 providers directly after the calculation of your loan amount. You can use the calculator completely free of charge and without obligation.

This information is required

If you would like to use the loan calculator correctly, you should enter the following information:

  1. equity
    This aspect sometimes has the most influence on the purchase price: the higher the equity, the higher the maximum purchase price. If all other data remain the same, this aspect does not affect the amount of the loan.
  2. Monthly request rate
    The monthly request rate is the amount you are willing to pay each month for the loan. The smaller this rate fails, the smaller the loan amount – and thus the purchase price of the reality. This is solely due to the fact that the providers want to get the loan back as soon as possible.
  3. Effective interest rate
    This interest rate not only indicates how high the provider pays the loan interest – also incidental costs such as the processing fees and the term are included in its calculation. So he indicates how the total cost of the loan interest. The higher the interest, the smaller the loan amount.
  4. Initial eradication
    Borrowers are prepared to pay this percentage at the beginning of the loan debt. Typically, a repayment rate of 1 percent of the loan amount is set. The higher the initial repayment, the lower the loan will be.
  5. Maklercourtage
    If a broker is commissioned to find a property or real estate, it must be paid. The amount of this commission affects the purchase price: the more the broker receives, the less left over from the purchase price for the home.
  6. Other costs
    The same applies to other costs: this includes all costs incurred in addition to the purchase price. If these are increased, the maximum purchase price becomes lower.

How to get cheap loans

How to get cheap loans

In order to obtain the best possible credit, special attention should be paid to interest, equity, maturity and intended use.

  • As low as possible loan amount
    Use as much equity as you can. Because the more you invest in the future home, the lower the loan amount, which must be repaid later. Also, raise low-interest cash investments and use them for mortgage lending.
  • Short term
    Calculate how much you can pay monthly. Then choose the appropriate maturity – the shorter, the cheaper the loan.
  • Fixed use
    Always choose a loan with a fixed purpose, as these are always cheaper than freely usable loans. For a property worth a real estate loan.
  • Involve second borrower
    Choose a second borrower who is also liable for the repayment of the loan. This gives the lender more collateral.
  • Offer additional collateral
    Provide the bank with collateral to reduce the cost of borrowing. These may be guarantors, but also land charges or capital insurances.
  • To arrange special repayments
    Special repayments can be arranged with the respective financial institution. They offer the possibility to pay additional amounts in addition to the usual repayment, in order to repay the loan faster.

Also, the loan calculator can help you to find a cheap loan : Enter all the important data and compare the individual offers together. Pay particular attention to the interest rate or the annual percentage rate of charge: this indicates what costs you actually pay each year. The interest rate, which is sometimes dependent on maturity, is regularly compared by experts and specialist journals and evaluated as an average interest rate – if the offered interest rate is lower than or equal to this, then it is a good interest rate.

Calculation: How much can I afford?

It makes sense to calculate what monthly amount you can afford before you make a loan.

  1. First, look through the bank statements of the last six months and list all regular income and expenses.
  2. Then calculate the proportionate cost of annual insurance premiums, utility bills or public charges.
  3. From the now visible monthly surplus you still have to deduct reserves for repairs, vacations and the like.
  4. Try to be as generous as possible when deducting the costs from point 3, because there may always be unexpected costs to you that were not planned.

Finally, you get a value that stays on average a month. And that’s ultimately the value that you can use as a monthly installment for funding.

If you want to pay consistent installments in the future, you can also use the Annuity Loan Loan Calculator. In this loan, the monthly rate (annuity) remains the same, it consists of repayment and interest together. The lower the interest rate that you can commit to for years, the faster you can service the loan. Especially mortgage lending, which is completed during a low-interest phase, thus also enable higher loan amounts.

Consider all costs

Always calculate the additional costs for the purchase of real estate. For example, the broker must be paid, and the notary fees and the land transfer tax must be observed. You should also remember the entry in the land register.

Installment loan or mortgage lending: what makes sense?

Installment loan or mortgage lending: what makes sense?

Who needs a loan for his construction project or the purchase of real estate, should first find out which type of loan is best for him: Worth a installment loan or mortgage lending?

What makes up the installment loan?

A installment loan can be used completely freely. Normally, you only have to transfer your salary claims to the bank. How much you can claim from this personal loan depends primarily on your credit rating and your household net income. This loan is usually used only for smaller financings up to € 70,000 – exceed this amount, high interest due. Some variants of the installment loan are:

  1. The real estate loan
    This loan can be used to build or buy a house. Since the purchase of the property is given a certain security, you often get a cheaper credit hereby.
  2. The modernization loan
    The modernization loan can be used if you already own a property but would like to make structural changes to it. This loan is earmarked – you must therefore prove your ownership by means of land register entries, tax declarations or the like.
  3. The renovation loan
    For cosmetic repairs, the renovation loan is suitable – this is earmarked and therefore attracts lower interest than a conventional installment loan.

What is a mortgage?

As a rule, a mortgage lending is used if the cost of a home over about 70,000 euros. This financing is always tied to the respective property – the bank secures the right to exploit the house through a mortgage in the land register. If you can not pay several installments, the financial institution can realize the property and repatriate part of the loan. This approach reduces the risk to the bank or building society. As a result, the institute gives you a much cheaper interest rate.

Additional costs are incurred for mortgage lending, in particular through notary fees and costs for estimates, land register entries and, if necessary, brokers. The land also requires you to pay part of the purchase price in the form of land transfer tax, sometimes up to 5.5 percent.

Sell ​​property only after eradication

If you have completely repaid the loan, the mortgage of the financial institution is also deleted. Before that, however, you can not sell the property – unless the buyer takes over the mortgage.

Step by step to mortgage lending thanks to loan calculator

If you are looking for tailor-made mortgage lending, Financedel’s Loan Calculator will help you find the right provider quickly and easily. It makes sense to first consider some considerations:

  1. What do you need financing for?
    If it is a cheap condominium or minor repairs, use a normal loan at best. If, on the other hand, you are purchasing a larger property, you should resort to mortgage lending. So you can benefit from more favorable conditions.
  2. How does the loan calculator help you?
    Using the Loan Calculator, you can find out what loan amount you received on the data you provided. You can also calculate the maximum purchase price of the desired property.

If you have decided to do mortgage lending, you should determine your loan volume – this is the only way to know how much you can pay monthly to pay off the loan. So check your monthly earnings and expenses and figure out how much you’ll ultimately have to pay for the loan. Also, find out what brokerage commissions you have in your area and what you need to pay to pay for them. With this information, you can finally use the loan calculator.

  1. Enter all necessary information in the loan calculator.
  2. Click on “Calculate Loan Amount”.
  3. You will receive an overview of the loan amount and the maximum purchase price. If necessary, change the initial repayment, the effective interest rate or the monthly installment to check your possible price range.
  4. Click on “Calculate construction rates”. You will get to a list of more than 500 providers.
  5. Enter your postal code, your method of financing and your net loan. You can also specify the repayment installment and the debit interest commitment.
  6. With “Filter & Sort” you can tailor the result list even better. Enter your employment, your provider selection and the sorting of the list here.
  7. Compare the individual offers with each other and choose the right service provider for you.
  8. Some of the listed providers can notify you via contact form, others will take you directly to the respective website. In the best case, contact several service providers in order to balance the offers tailored directly to you.

If you have come into contact with the right supplier, all you have to do is submit the required documents. Incidentally, in some cases it is possible to obtain the loan through an online procedure – however, you will need to perform a post-identification procedure to identify yourself.

Financedel Loan Calculator is the ideal way to find the right lender and loan for your purposes.

questions and answers

 

Can I also use the loan calculator to calculate the annuity loan?

The annuity loan is a loan in which the monthly rate remains the same throughout. However, the more that is repaid from the loan amount, the lower the interest component. In the same turn, however, the repayment share is increased – this leaves the monthly rate the same. So it makes sense to use a calculator designed for this particular loan. Nevertheless, if the above loan calculator is used, it should always be clarified with the individual providers that it should be an annuity loan.

Can I also use the loan calculator to calculate the forward / follow-up loan?

The forward loan can be completed before the loan is even used. Advantageous: If the loan is disbursed at a later date, the interest rate fixed at the time of the conclusion of the loan still applies. This type of loan is mostly used on real estate to prevent rising interest rates. The loan calculator can therefore be used for this – that it comes to a follow-up loan, but should be clarified with the appropriate provider.

What advantages does the online loan calculator have?

An advantage of the loan calculator is that you can use it completely free of charge and without obligation. In addition, the loan calculator can be operated easily and without much time. You received all offers at a glance and can compare them transparently. It should also be noted that the conditions listed are often cheaper online than in the branch banks.


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Loan calculator: online calculator with top rates

Category : Uncategorized

Important in the use of credit calculator

  • Note the annual percentage rate
    When comparing, always pay attention to the APR. The indication of the annual interest rate is required by law and offers you a good opportunity to compare the various offers.
  • Consider earmarking
    Assigned loans usually have lower interest rates. However, this actually binds the loan to a particular use, such as the purchase of a car.
  • Keep running time as short as possible
    Shorter terms reduce the total interest payable. But beware: The higher monthly repayment rate should not exceed your available financial framework.

Although credit calculators are clear and compact, not everyone knows how to find the best deal with them. We explain with which procedure you receive suitable results with top interest rates. At the beginning, think about what you would like to use the loan for and how many months or years you would like to repay it.

Determine the best conditions in the loan calculator

Determine the best conditions in the loan calculator

In order for you to find a low-priced offer using the loan calculator that is tailored to your needs, some aspects should be set out in advance. Decisive for the choice of the credit is, among other things, the purpose. Already with the credit comparison you can decide for the indication of a purpose of use.

You want to use the credit for your home

If the loan is to be invested in a property, the real estate financing is worthwhile: While a real estate loan usually only reaches up to a sum of 50,000 euros, mortgage lending will be increased from this amount upwards. To find a reputable provider for the loan, the use of our loan calculator for the house makes sense. In addition, you should consider some aspects in order to obtain comparatively favorable conditions:

  • Create financing concept
    To finance a property as cheaply as possible, a financing plan should be created. Take into account your life situation, your monthly income and your hedges. Using this information, you can include the real estate financing in your current costs and calculate the realistic monthly repayment. As a result, you can then create the financing concept.
  • Consider equity ratio in mortgage lending
    Although it is quite possible to conclude a construction loan without equity, but for a much higher interest rate is due, making the monthly installments are more expensive. So to get a cheap loan, you should invest equity – this can reduce your monthly exposure.
  • Observe fixed interest period
    The fixed interest period is the period in which neither the lender nor the borrower can change the borrowing rate. If the fixed interest period expires and you, as the borrower, have a residual debt, you must renegotiate the terms of the financing. So be sure to calculate that the interest rate can rise after the interest rate has expired. Be aware in advance of the final installment or the remaining debt of the loan and consider various options for follow-up financing.
  • Negotiable monthly rates negotiate
    For a number of banks it is possible to lower or increase the monthly installments during the term. This flexibility is a good idea: you can always tailor the loan to your current financial situation.

You want to use the credit for a car

The purchase of a new car is usually relatively expensive, which is why the credit is a good way to finance the vehicle anyway. For the financing of the car there are two variants:

  1. Assigned installment loan
    In the case of an earmarked installment loan, the vehicle is considered as collateral: You may only use the borrowed money for this purpose. Since the bank knows about the purpose of the loan due to this condition, usually a favorable lending rate is determined. In the loan calculator, select the purpose “used vehicle” or “new vehicle”.
  2. Three-way financing
    With this variant, you start by paying a fixed amount – then you have about three to four years to pay the installments. At the end of the term, you can either buy, refinance or return the vehicle.

Detailed information on car loan can be found in our detailed guide – the car loan calculator will also help you find the right loan.

You want to use the loan for free use

Classic installment loans can usually be used for free use – so it does not matter whether you use it to finance a new washing machine or your summer vacation. In most cases, however, it is better to find a loan that is tied to a specific purpose: since banks know the equivalent value for this loan, they usually offer lower interest rates.

So if you want to borrow for a specific purpose, like the car or the new TV, you should find out if special loans can be used for this purpose.

You want to reschedule

In the case of long-term loans in particular, it often happens that you are aware of a loan with better terms – if you want to replace your old loan with a new one, this process is called debt rescheduling. The process is particularly worthwhile with conventional installment loans with a high interest rate; earmarked loans are usually from the outset equipped with low interest rates. So, before you start rescheduling, think carefully about whether this will ultimately pay off.

Also note the cost of a prepayment penalty: To reschedule your bank, you will need to pay a transfer fee to your bank – it is always recommended to consult an expert for the credit calculation.

Rescheduling can be rejected

The bank may decline your rescheduling request and demand that you pay off the full loan. In such a case, it is best to contact the bank and discuss how to proceed.

You want to use the credit to balance your checking account

Using a disposition credit, you can cover your checking account and pay bills even when the money is tight. However, the interest on the credit line is often high, with interest rates averaging 11 percent on average. A classic installment loan, which is subject to normal market interest rates, is often cheaper in comparison. So if you take advantage of the current account credit over months, it pays to think about rescheduling.

3 tips on how to get cheaper credit terms

  • Shorter term = cheaper credit
    Important is the optimal runtime: With long term you also pay long interest rates, which makes the loan more expensive. However, if the term is too short, the monthly rates are set high.
  • Remaining debt insurance causes high costs
    Since the conclusion of a residual debt insurance is expensive, it usually pays off only for a high loan amount.
  • A second borrower lowers the interest rate
    If you name a second borrower, who also has a regular income, the risk to the bank is lower – so you can reduce lending rates.

It is therefore worth checking before accepting a loan whether this can be concluded on even better terms.

This is how you will find it in the loan calculator

This is how you will find it in the loan calculator

Here we explain step by step how to use the loan calculator to take out a cheap loan:

  1. Determine the credit volume
    First you have to calculate the required credit: List all the costs that come to you for the respective purpose. For example, if you want to take out a real estate loan, not only will the price of the house be payable – you will also have to pay the fees for the land registry, utility charges, land transfer tax and other sums.
    Collect all costs in an overview in order to calculate the necessary credit volume. Also keep in mind that the equity loan can be cheaper.
  2. Carry out a household bill
    In order to find out what monthly installments you can afford, you will need to prepare a full household bill. In the bill, compare all monthly earnings and monthly expenses. The household computer from Financedel helps you to give all the information quickly and easily. Then he sums up the amounts and calculates the monthly available credit, with which you can repay the loan.
    Incidentally, when calculating monthly payments, it makes sense to give generous financial leeway – so you can be sure that unexpected costs can be paid without too much restriction.
  3. Compare the different offers of the banks
    In order not to find the first credit but the cheapest loan for you, it is worth comparing the offers on the Internet. The Financedel loan calculator allows you to easily compare different credit providers online for free. Enter the intended purpose, the desired duration as well as the desired sum of the loan – our comparison will immediately list all the offers that are suitable for your project. However, the loan calculator will not only show you the monthly installment and the APR. You also have insight into customer recommendations as well as the acceptance rate of the provider. After inquiring about your creditworthiness at Private credit, banks often offer you a credit-based interest rate. Of course, our loan calculator is available to you as a free service.
  4. Complete the loan application
    Using the online portal of the respective bank, you can have your credit rating checked on the basis of some information, conveniently complete the loan application online and then print it out. On the other hand, some banks check your creditworthiness first and send you the documents by mail or e-mail if the result is positive. After completing the application, verify that all information is correct and sign the application at all points marked with a cross.
  5. Have all necessary documents ready
    In order to complete the loan application, important documents must be submitted. These include salary certificates for the past three months, as well as account statements, a copy of the ID card and possibly a copy of the employment contract.
  6. Perform the Postident procedure
    The credit application documents usually also contain the coupon for the Postident procedure. With the help of this coupon, you can identify yourself at a post office – this requires you to present an identification document, such as your identity card or your passport. If you have signed the Postident coupon, it will be sent to the appropriate bank together with the application and all necessary documents. Some banks now also offer the videoident procedure.
  7. You receive the loan
    After accepting your application and completing the identification process, you will receive the credit. This will be paid out within two to four business days after the exam.

It’s that easy

call option

Within 14 days of applying, you can cancel your loan, even if you have already paid the loan or parts of it.

questions and answers

questions and answers

What is a loan calculator and why should I use it?

For the most different types of loans, there are numerous providers in the network. To help you get an overview and save as much money as possible, you should use a loan calculator and perform various calculations. The interest calculator offers you the opportunity to compare different providers and to choose the cheapest loan.

Is the loan calculator free?

Yes, the loan calculator is free and the offers shown are not binding.

Debit interest vs. annual percentage rate: what is more important with the loan calculator?

The borrowing rate indicates how high a loan will pay – it remains the same throughout the term of the loan.

On the other hand, the annual percentage rate of charge is more important for the loan calculator: it not only includes the debit interest, but also essential factors such as the term or the processing fees. So he shows the total cost of the loan. With the same fixed interest period, the annual percentage rate is thus better suited to compare loans.

Is the interest displayed in the loan calculator also definitely mine?

The loan calculator usually provides only a rough way to compare different loans together. Your interest may, however, differ from this statement, because interest is always dependent on credit. The credit rating indicates how likely it is that you repay the loan on time and in full. The better your creditworthiness, the lower the interest will ultimately be.

Incidentally, your credit rating is noted in the Private credit – you can certainly also take out a loan without Private credit, but this usually has poor conditions.

What advantages does the loan calculator have online?

An advantage of the online finance calculator is that it works for free and the loans are non-binding. In addition, the product list of each loan can be compared more easily with the aid of the clear list. In addition, you have the opportunity to deal extensively and in peace with the individual offers.

Using the loan calculator online is definitely worthwhile. Already an overlooked processing fee or a few percentage points more in the APR make itself clearly noticeable in the total. However, this is always shown on the loan calculator, so that you have all the important information at a glance. Our free loan calculator will help you save!

How fast does the loan calculator determine the offers?

Based on your information, the credit comparison immediately calculates possible offers – you can then compare the non-binding information with each other. The quick query on the finance calculator also allows you to play through various options regarding the loan amount and the term (usually between 12-84 months) without having to submit a new loan application each time. Of course, you will only find reputable providers in the loan calculator. Especially good products, which have already convinced in tests, you recognize immediately on the appropriate seals.

How fast can I get the loan paid out?

If you have submitted a loan application, it will be submitted for review. After completing this exam, the loan will take approximately two to four business days to complete. If you want a faster payout, an instant loan is a sensible alternative – in this variant, the amount is usually transferred already after 24 hours. You will normally receive a repayment plan directly with your contract documents.


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Car loan comparison: favorable top conditions

Category : Uncategorized

5 tips for car loan

  1. Use cash payer discounts
    Use a merchant-independent loan instead of financing from merchants or auto banks. So you can pay cash when buying a car and benefit from discounts. Although the dealer credit offers low interest rates for current models, but often higher purchase prices and rigid guidelines.
  2. Compare loans
    With offers from different banks, you can find the most suitable car loan for you.
  3. Increase creditworthiness
    For example, use a second borrower. Additional collateral can increase your credit rating.
  4. Stay flexible
    By keeping special repayments and payment pauses open, you remain flexible during repayment.
  5. Include required insurance
    Car banks often demand a fully comprehensive insurance for the vehicle. This brings further costs.

With the large selection of car loans, it is not easy to keep track. Every second new car is purchased with the help of a loan, in used cars it is more than a third. How do you recognize a cheap car loan? We explain it and show you how to find it with our loan calculator. This will take you to your new dream car without unnecessary additional costs.

How to find the cheapest car loan

How to find the cheapest car loan

Do you know what makes a car loan cheap? Compared to other uses, the biggest cost hurdle for auto finance is not always the interest rate – it’s hidden in the cash payer discount. This discount is possible if you choose a direct bank.

Car loan from a direct bank

A car loan directly from a direct bank can offer you many advantages:

  • Benefit from the cashman discount
    If you use an independent car loan, you can have the loan paid out in cash. With the dealer you can negotiate a discount for the cash payment. With the discount, the purchase price drops, so you need less credit. And with a smaller loan amount you have to pay less interest!
  • Free choice of the bank
    Car dealerships usually cooperate with just one bank or directly with the automaker’s bank. You have no choice. With a free loan, however, all credit institutions are open to you. So you can choose a car finance with the biggest interest advantages and the best conditions.
  • Keep special repayment open
    Loans via a car bank usually do not provide for special repayments or installment breaks. With the dealer credit you are so inflexible, if you pay the loan unexpectedly prematurely and so could save interest, or if you have payment difficulties!
  • No mileage limit
    The car loan independent of the dealer is earmarked and finances the car without further conditions. Merchant loans, on the other hand, often have a mileage limit anchored in credit terms. This is especially true for so-called 3-way or balloon financing. If you get over this limit, you have to dig deep into your pocket again!
  • Lower credit costs
    Through a credit comparison, you can opt for the cheapest offer from a bank. Thus, you reduce the credit costs significantly. At the same time, the independent loans are usually cheaper anyway, as they are earmarked as motor vehicle loans and the bank uses the vehicle as collateral.

Duration of a maximum of 5 years

The chosen repayment term not only influences the monthly installments, but also the interest rates: cheap car loans are available with terms of up to 5 years (60 months) because the risk of repairs and expensive maintenance is lower here. So if the vehicle is needed as security, the financier has greater chances of compensation without discounts, for example due to previous damage or the like.

Benefit from cash payer discounts

Anyone who has ever spoken with a dealer about the purchase price and financing offers, knows the fundamental problems of this type of financing: They are practically only for a limited period, for current models with special features or only if you give your used car at the same time in payment.

However, the favorable interest rates of the car dealers can have a catch: the dealer must give the financing Autobank again a security that the contract is fulfilled. If in doubt, he beats the risk on the purchase price, which you can no longer negotiate in this variant. Keyword here is the already mentioned cashman discount.

The situation is different with regard to financing – whether credit or regular installment credit – through independent institutions that identify you as a cash payer. Experience shows that you can negotiate larger price discounts, especially with predecessor models or standard equipment. Depending on the amount of the purchase price, this discount then exceeds the cost of the cheaper alternative via the car dealer.

Example calculation: dealer credit vs. car loan

A sample calculation illustrates the saving potential. For this, the assumption is that you want to finance a car for a purchase price of 15,000 euros. For this, exemplary interest amounts are selected.

  Manufacturer’s Autobank Independent direct bank
Purchase price of the car 15,000 euros 15,000 euros
Negotiated estate 0 percent 10 percent
Net loan amount 15,000 euros 13,500 euros
Effective annual interest rate 4.5 percent 5.25 percent
Duration of financing 48 months 48 months
Monthly Rate 341.44 euros 311.68 euros
Total cost of financing 16,389.28 euros 14,960.51 euros
saving   1,428.77 euros

As you can see, the monthly charge is approximately 30 euros below the comparable offer of the manufacturer’s Autobank. Thanks to the cash payer discount, savings of over 1,400 euros were achieved here. You can invest this money in new equipment details or use it as a back-up for repairs.

Calculate cash discount

Requirements for a car loan

To apply for and receive a car loan, you must meet these conditions:

  • Age : You must be at least 18 years old to use a car loan.
  • First residence in Germany : You must live predominantly in Germany and have your first residence here.
  • German Account : Your account must be held at a bank in Germany.
  • Regulated income : You must have a regular income. Depending on the bank, this can be income as an employee or self-employment.
  • Creditworthiness : Your credit rating must be sufficient for a bank to grant you a car loan. As a rule, a credit report is therefore carried out. Frequently, credit providers still want additional protection in the form of insurance (eg, residual debt insurance) or capital investment.

In 5 steps to auto finance

In 5 steps to auto finance

If you have decided to buy your new car not only from the savings, the process is usually the following:

Choose your desired car

First, you should ask yourself if you want to finance a new or used car. Used cars usually have the advantage that they are cheaper than new cars. On the other hand, you will have to reckon with repairs or replacement of wearing parts during the runtime. It is advantageous if the car dealer gives a warranty on the used vehicle, similar to what is common with new cars.

  • Price comparison : Check before financing the vehicle, if there is the same or a similar model at another dealer cheaper. For used cars, also use a price comparison on the Internet.
  • Additional costs : When choosing a vehicle, also consider other factors that influence the fixed costs for the vehicle, such as displacement, fuel consumption or loss of value.
  • Make and model: After the question of new or used cars, you decide on a car brand and a corresponding model. Take into account where your actual need is. Does it really have to be the SUV with a lot of horsepower, for example, or is an economical combination enough?

Make a household bill

If you have decided on a car, you should consider your economic circumstances. Take the statements of the last six months and break down each revenue and expenditure. Unscheduled payments should be taken into account, bonus payments are to be calculated out. The difference shows you how high your monthly installment may be.

Choose the cheapest way of financing

For the financing of the car you have various options to choose from. The following table compares all the important aspects of common credit options for you:

  car loan leasing 3-way financing
advantages
  • Paying cash discount
  • unscheduled
  • No mileage limit
  • Low monthly costs
  • Easy return
  • Lower rates compared to Installment purchase with same duration
disadvantage
  • Rates higher than with 3-way financing or leasing
  • Car remains the property of the leasing company
  • No assets are being built
  • Seduced to low eradication
  • Interest rate risk on follow-up financing

According to a study by GfK’s market researchers, in 2016 around 71 percent of financed cars were financed via a classic installment loan. 17 percent opted for 3-way financing, while 20 percent opted for leasing. Only two percent had opted for a different form of financing in 2016.

Have the necessary documents ready

  1. payslips
    When you work in a job, banks usually need your last pay slips. This will show you regular income.
  2. Bank statements with salary receipt
    In addition to salary statements, some banks require the bank statements of the last three months. This applies in particular to employees or trainees.
  3. Registration certificate Part 2 of the vehicle
    The registration certificate confirms that you own the vehicle. Sometimes only one copy is necessary. However, if the vehicle is transferred to the bank as part of a security transfer for the duration of the car loan, the bank will need the vehicle registration document.
  4. tax bills
    Self-employed or freelancers, who do not receive their income through employment, must use current tax assessments to prove what they earn. Often tax assessments of the past three years are required.
  5. BWA – Business evaluation
    When self-employed people apply for a car loan, banks usually require an additional BWA. This applies in particular if the most recent tax assessment date is older. The BWA is usually created by a tax consultant.
  6. Security agreement
    Some banks conclude a separate contract for the transfer of ownership of the vehicle. This contract is then part of the loan agreement.

Credit payment and car purchase

  • Disbursement: If you opt for a dealer-independent car loan, this will usually be paid out within a few working days. The prerequisite is that the bank accepts your application and you fulfill all the necessary conditions. You can then cash out the loan amount directly at the bank and buy the car.
  • Buying a car: Take advantage of a dealer-independent loan and trade with the car supplier. Often discounts of up to 30 percent compared to the list price are possible. Also, try to haggle for optional equipment or a warranty extension for new cars. As a cash payer you usually have clear advantages in all negotiations.
  • Admission and insurance: After the purchase you must allow your car. Many car dealers are taking over this service for their customers. Regardless of whether you allow the car yourself or hire your car dealer, you need valid insurance cover. Register your new car with an existing car insurance company. Or take the advantage of changing vehicles to find cheaper insurance. Carry out a car insurance comparison for this. The eVB number after the promise of the new insurer is then required for the registration.

Use alternatives to residual debt insurance

The residual debt insurance is designed to ensure that the loan can be properly fulfilled, should you fall ill or lose your job. However, such insurance costs accordingly, so they increase the actual cost of the loan. Apart from that, there are waiting periods, so the insurance does not start until after a certain time and has its own definitions of when you are considered “sick” or “incapacitated for work”.

An alternative, therefore, is to bring in eligible investments. Term life insurance or disability insurance can normally be ceded easily to the financing bank.

Useful additional information

Useful additional information

There are many more things to remember about car loan. Here you will find everything you need.

Beware of the three-way financing

Caution is advised when car loan with closing rate, also referred to as three-way financing. In this case, the financing is built up similar to a lease. They make a down payment, some even without offers, and pay a low rate over a period of three or four years.

At the end of the financing, the balloon must be paid, the final installment, which regularly accounts for more than half of the vehicle’s value. However, this depends on the recoverable residual value, which often leads to disputes between traders and buyers. Because even if you return the vehicle, it can still come to an open balance. In this case, you pay for a vehicle that is no longer in your possession.

Check the indicated residual value

Explain in detail the evaluation features of the three-way financing and check the declared residual value by independent experts. Automobile clubs and rating societies keep a list of each model type and make, based on actual sales values.

Check insurance requirements

An additional point that comes into play when financing via car banks, is the insurance condition in the contract. Typically, the dealer will require you to cover the vehicle with a fully comprehensive insurance against any possible damage. Because first the total loss occurs, is also the security for the car financing away. Of course, this will increase the actual cost of the vehicle, which you should consider when comparing.

In the case of independent direct banks, it has meanwhile become customary to dispense with sending the vehicle registration documents. You then only have to submit a copy of the registration certificate Part II and thus have little bureaucracy.

Saving with the insurance possible

Some contracts provide for borrowers, vehicle owners and policyholders to be the same. In more and more tariffs, however, the banks deviate from this regulation. Thus, the financing can run on the woman, as a vehicle owner but the man is registered. Gambling with percentages and other discounts on insurance is possible. The only requirement is that then the woman is in the vehicle registration.

So widespread is the car financing in Germany

According to figures from the German Automobile Trust, more than half of consumers in Germany use a loan for new car financing. Partial and full financing is taken into account. Around 20 percent of consumers opt for leasing new cars and only a quarter pay for the new car without credit.

In the used cars results in a slightly different picture. In Germany around 40 percent of this is partly or fully financed. Only two percent of used cars were leased in Germany in 2015. Around 58 percent of car owners have bought their used cars without financing.

Questions and answers about car loan

Questions and answers about car loan

What is a car loan?

A car loan is an earmarked installment loan for the financing of a new or used car. With a car loan individuals get a loan, which they pay back in equal amounts (installments).

Why are Autobank loans often expensive despite low interest rates?

Many of the dealer-brokered auto loans are tied to specific models or features. You can then only take advantage of the offer for a limited time. At the same time, however, you are not a cash payer, because the dealer and the car bank are linked. This means that the trader takes over part of the risk for you. Therefore, dealers can even offer zero-percent financing, because the higher purchase price, the dealer recovers the self-borne interest rates. But since you can negotiate just with old models or vehicles in need of repair, higher interest rates via direct banks are no problem (see example calculation above).

Are used cars just as easy to finance?

For used cars, most banks make no difference, because here too the vehicle is included as security. Only in the application, more information must be made, such as the mileage, the first registration and the like. In practice, the limit is often 10 years, even mileage over 250,000 are problematic.

Car loan and car leasing, where are the differences?

In the classic car loan, the granting of the loan amount is linked to the purchase of a car, that is, earmarked. The registration certificate Part II serves as collateral, while interest rates are lower than for classic installment loans. The vehicle is in your direct possession, for example, you can easily sell the car or change the owner.

In car leasing, on the other hand, the vehicle is left for a certain period of time, often between three and four years. It is, so to speak, a car rental. For lessees, the leasing rates are deductible, which is why this capital-conserving option is often chosen for models of the upper class. You pay for the loss during the term, so the installments are higher in the loan financing. If the car is returned at the end, it may be that after mileage, minor scratches and the like, a high additional payment threatens. In addition, the requirements for the motor insurance are high (fully comprehensive), you also bear the risk for repairs.

Which types of loans are customary in car financing?

The three-way financing (balloon loan), however, is a mix of installment loan and leasing. Very low monthly rates are followed by a high final installment, in some cases a down payment has to be made. Interesting for those who expect a larger payment within three or four years and then finance the balloon from own funds. Since much of the loan is paid at the end, the interest rate in the monthly installments is correspondingly high.

What are the advantages of applying for a car loan online?

A car loan is always earmarked, in which case you indicate the vehicle as collateral for the financing. Compared to the classic installment loan, this sometimes entails enormous interest advantages, because the credit rating plays a lesser role in the application process. The online comparison summarizes all matching offers, first independent of one’s own credit rating. This gives you an overview and allows you to compare whether, for example, special repayments or installment breaks are possible.

When is a car loan the best car financing?

A car loan is suitable in the following cases:

  • You can not afford your car finance in cash, but you want to become the owner of a vehicle. In this case, the car loan with consistent rates, direct commitment and foreseeable term is just right for you.
  • You want to save the interest on the dispo. If you use your Dispo, you pay very high interest rates (up to 17.50 percent). A car loan can reduce your interest costs by up to 80 percent.
  • A car loan can be made more flexible than a lease contract. Lessees are mostly business people because they can deduct the high cost of leasing tax deductible. As a private individual you can take advantage of a car loan: First, you acquire the car as a property and thus has the opportunity for a possible sale. Furthermore, you can get a car loan without Private credit.

Can I cancel the loan at any time?

Yes, you have the right to repay a installment loan early, eg by taking out a cheaper loan from another bank. However, the loan processing fee paid by you will not be refunded by the relieved bank. During the agreed interest fixing period / loan term you can terminate the loan at the earliest 3 months with a notice period of 3 months and repay the outstanding loan amount due to the legal regulations.

You can also repay partial amounts at most banks during the agreed term, so-called special repayments. In these cases, the monthly rate remains the same and it shortens the term.

The financial institution also has the right to terminate the loan. This happens after two written reminders for two consecutive, unpaid installments. The borrower has three months to pay the debt. As long as you pay off the loan, the vehicle papers usually remain with the bank.

Is only a condition request carried out?

Inquiries made via our credit calculator are treated as “request credit terms” at Private credit Your advantage: This is not visible to every other bank.

For other providers, your request may be stored as a “loan request” at Private credit, which means that it can be viewed by any other bank or corporation, which could lead to disadvantages for the prospective buyer the documents of the Private credit is, that means that no credit has been granted – that you as a customer but only for the loan conditions has interested, let alone whether you would have been accepted or rejected, does not emerge from this entry.

What is the level of the monthly rate?

How much you have to pay monthly for your car loan depends on several factors:

  • Cash payer discounts : The more discount you get on the vehicle when paying in cash, the cheaper the credit will be. Because you can use the money saved as a rule immediately as a special repayment.
  • Special repayment options: The more unscheduled repayments you can realize, the cheaper the monthly installment will be. This is the case when the loan is recalculated over the entire term.
  • Remaining debt insurance: A residual debt insurance can significantly increase the monthly installment. Therefore, check in advance whether this option makes any sense for you.
  • Credit : The higher your credit rating, the lower the credit costs, as you will have to pay less interest on your loan. In order to increase the credit rating, it is therefore often advisable to take two borrowers into the loan agreement.
  • Term: The longer the loan contract runs, the more interest you have to pay and the more expensive the loan will be. However, you can reduce the monthly installments by a longer term.
  • Annual percentage rate: the higher the interest rate for the same duration, the higher the monthly rate. This factor is especially important in the credit comparison.

What happens if I can no longer pay the loan?

If you are no longer able to pay the installment of your car loan, it is best to contact the bank at which you have taken out the loan or lease contract early on. It is recommended that you already inform the bank before a due installment could not be debited. In this way, it is possible to talk to the customer service of the bank in order to possibly receive a short-term installment delay.

If leasing or credit installments could not be deducted from your account, the lender or lessor will contact you directly. Usually, the rate is posted a second time after a first failed attempt.

From a certain number of defaults, the bank has the right to collect your vehicle, because usually the car serves as collateral. When this security can be claimed will be specified in the loan agreement. For this reason, you should read this contract in advance to avoid unpleasant surprises. Because even if the lender has collected the car, the credit continues to run and the open installments must continue to be paid.

I need the loan urgently. Is there a way to get the payout faster?

Usually, it only takes between four and six business days from the application to the payment of the car loan. You can speed up the process yourself by completing the loan application and settling all necessary documents immediately. In some cases, the loan payment can also be made faster if you visit the bank branch directly. For direct banks, however, this possibility is eliminated. Another way to speed up the process is the legitimacy by videoident method. In this case, you can legitimize yourself directly online and do not have to carry out the identification in a post office via PostIdent.

But more importantly, you do not rush to make lending decisions despite the time. Keep in mind that you are committed to paying a fixed rate with a car loan over several years. Before borrowing, make sure that you can service these rates. Also, compare different loan offers to find the cheapest car loan.

How much credit can I get from the car loan?

The deciding factor for the possible amount of credit, as with any loan, is your free disposable income. In addition, your credit rating has an impact on the lending and the amount of the possible loan. In a dedicated car loan, however, the financed car itself plays an important role, because it usually serves as collateral. Thus, it is foreseeable that a bank in a new car generally granted a higher credit than a used car.

Which interest is decisive in the comparison?

The nominal interest rate indicates the interest you have to pay each year for your loan. This interest rate is based on the net loan amount and has an impact on the amount of the monthly loan installment.

The effective interest rate includes the nominal interest rate and also takes into account all possible ancillary costs of the loan such as processing fees or payment costs

Therefore, always pay attention to the effective annual interest rate for the credit comparison because it takes into account all borrowing costs incurred. For example, an offer may appear attractive at first sight due to a favorable nominal interest rate. If, however, the effective interest rate is specified, the supposedly cheap loan offer can become significantly more expensive and no longer the best.


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Mortgage loan: 1 French out of 2 has already changed banks

Category : Uncategorized

More than 1 in 2 French has already changed banks in favor of a mortgage loan, reports Bank in a study published last Wednesday. This is particularly true for Generation Y. On average, the French need 7 years to gather the necessary personal contribution.

2017 will have brought luck to the real estate sector. The French borrowed about 255 billion euros that year, says the Bank of France. This increased activity for the banks goes hand in hand with the fluidity of the clientele. 8 in 10 French have already thought of changing banks in favor of a loan, reports Bank in a study published last Wednesday.

62% of generation Y

62% of generation Y

Bank has studied the behavior of 10,000 borrowers in 10 different countries. The French think more often than others (61%) to change banks. They also concretize this idea more often (52%) than the average (44%). In the overall standings, they come second just behind the British (53%). The Macron law made this operation easier. Individuals can ask the bank to take the steps.

Behaviors change according to the age of the borrowers. 52% of French baby boomers (born between 1945 and 1960) have already taken the plunge. This rate falls to 49% for Generation X representatives (born between 1961 and 1981). On the other hand, 62% of generation Y (born between 1980 and 2000) has already knocked on the door of another bank. When they try the adventure, the overwhelming majority of customers (82%) say they are looking for a better deal.

7 years to make up their contribution

7 years to make up their contribution

The French follow their interests much more than the other nationalities surveyed (55%). This trend reflects the weight of real estate debt, more important in France than in other countries analysis site Money Bursary. The French spend 36% of their monthly income on average, and up to 40% for the youngest. Proof of the importance of this item of expenditure, 38% of French people are afraid of not being able to meet their deadlines.

Three out of four French people (76%) think that they will have a hard time getting the necessary personal contribution. To achieve this, 28% of first-time buyers rely on family financial support. This difficulty in raising funds explains why the French take an average of 7 years to make up their contribution. This falls to 3 years in the UK, compared to 5 years for the global average in the Bank study.