In Germany, every second new car purchase is financed by a car loan – and the number of used cars is increasing. All credit transactions in Germany are subject to a two-week right of withdrawal. Car Loans in Germany? It works with these “tricks”! More than 95 percent of all new vehicle purchases are co-financed in Germany.
Depending on their condition, used vehicles are either paid in cash or with a car loan. Here you will also find helpful hints on how to increase the likelihood of credit significantly! There are several ways in which you can take out a car loan that is eligible for new or used car financing.
The most used options for you: private financing (private credit, can also be done via the net = Creditend). Often people who make such an application first contact their principal bank or other financial institution when it comes to borrowing. Could be a mistake if you do not have a single acquaintance in hand.
Because, if you do not get a credit, you can be a little bit “burned” in the worst case scenario and ask for a real house bank without a real comparison. The installment agreement with the dealer, which is basically nothing more than a car loan, is not used so often. We were able to identify the best results in matching car financing via well-known Internet platforms.
This not only significantly increases the likelihood of a car’s financing, but also lowers interest rates – in some cases considerably – through the simultaneous competition for “your” loan amount from several banks. Comparison over the Internet: By making an Internet comparison, you increase your financing options at favorable monthly rates. If this is not possible, there is the possibility of lending money for vehicle financing from various private individuals via an automatic procedure.
Before deciding on a car loan and thus for the loan application, you should know that you have some framework with almost every lender. Any potential lender will a) check if they are yours for car financing and b) up to a maximum of what amount.
Largest credit rating agent in Germany is the company Cargearfe. By the way, the easiest way to finance a car is to have a permanent job. Because it is unlikely that you will know them and they change depending on the current banking policy, it makes sense to make a reconciliation on the net. As a self-employed person you would at worst apply for a loan application from a service provider who would not be financing the self-employment at all, which of course leads to a rejection of the loan application and worsens your creditworthiness with the authorities!
We know from our own experience that as an applicant, you have excellent opportunities to increase the likelihood of a loan engagement. Often z. For example, the house bank or car dealership will file a request for credit because there is a negative entry in the private credit bureau information. Often the potential customer is not communicated that the credit promise due to the private credit bureau information has been omitted.
If you can choose a second borrower, the likelihood of a loan commitment will increase the most. This is the nicest thing for the house bank, because it now has two people who are responsible for the correct repayment of the loan. With a second borrower not only increases the possibility of a loan commitment enormously, the loan is also reduced for you!
You can calculate in advance whether you can afford a car loan through a budget calculation. Because the house bank has it too. If the amount is very small, consider how to increase it. Can you increase the result? If you have more money than income, getting a loan is not a good decision.
If your projected loan rate is above your available gross income, there is another “trick” to increase the likelihood of bank lending. This at best reduces monthly loan installments so you can afford to finance your car! In addition, the house bank will earn more from you in the longer term.
This reduces the risk of the lender rejecting the loan application because your available money is too low relative to the loan rate. However, to contact the Mortgage Advisor, you must first enter the required credit report and your personal information. Tips for people who have been in Germany for a long time or started to build up wealth:
If all of the above advice does not work or does not help, there is another way to increase your chances of getting a loan for the proposed car loan. At this point, again the biggest lever for a loan commitment is called: a competitor. Then, instead of a borrower, there would be two, which reduces the lender’s credit risk and significantly increases the credit exposure.
Overview for “high flyers” In Germany there are several ways to finance cars. Which way you go to apply for a loan for your vehicle is extremely crucial to the company’s success! If you look at the hints in our article, you’ll increase the chance of a positive loan commitment significantly. Whether it helped you, we can tell from your vehicle financing whether you have your vehicle financing.
Thank you for your help and good luck in financing your car!