Few drivers avoid the loan for the motor vehicle. The great demand for these loans therefore also guarantees a special variety of offers. The following article presents various financing options for the vehicle. Installment loans but also vehicle leasing are addressed.
The loan for the car – new car financing.
It is worth taking a closer look at the loan for the vehicle as part of the new vehicle financing – even beyond the interest rates. Even zero percent financing can be more expensive than paying interest. The cash payment discounts for new vehicles are sometimes extremely high. Up to 20 percent discount on the list price is not uncommon. The financing offers of the direct banks offer low interest rates for loans for motor vehicles and allow the cash payment discount to be realized.
Subsidized interest rates and small installments for car purchases can be assumed for balloon loans via the car bank. For new vehicles, it is often offered as three-way financing. The “clue” to this financing is the cheap running rates. They are made possible by a high completion rate. With this special financing, all options remain open until the very end. The final installment can be paid in one sum. Alternatively, there is, from the financing company offering, the guarantee of further financing through a new loan agreement. But if you prefer to return the vehicle, you can easily return it to the dealer at the current value.
Installment loans outside of manufacturer financing.
The credit for motor vehicles is of course gladly financed by every bank. The real value of the loan provides additional security when securing loans. The offers can be correspondingly cheap. For most people, the house bank still plays a particularly important role in all financing ideas. Nevertheless, a comparison of interest rates with the offers of the direct banks should not be avoided. The offers from the Internet are often significantly cheaper than those from the house bank.
In the case of particularly expensive vehicles, not only the comprehensive insurance of the vehicle should be considered. Securing the loan with residual debt insurance is also advisable. Illness and unemployment lose their terror if the result is not immediate financial hardship. In the case of long-term financing, particular attention should be paid to protecting the family. A residual debt insurance covers the payments if the borrower usually gets into financial constraints. This is almost always the case when you lose your job or have a long illness.
Car leasing – who is it worth it for?
Vehicle leasing to finance the vehicle is offered for private and business use. Basically, leasing has hardly any advantage for private use. The loan for the car as an installment loan is the better alternative to private leasing in almost all cases. Mileage is often limited for leased vehicles. Apart from some advantages through maintenance contracts especially offered for leasing vehicles, there are actually only disadvantages.
However, the situation is different when the vehicle is used for business. The advantages of a leasing contract for business vehicles lie in two different areas. The biggest advantage is the full tax deductibility of the leasing rate. The company’s tax burden can be reduced. The father state practically pays for the use of the vehicle.
Anyone who chooses the leasing rates cheaply for later private purchase can practically buy their own vehicle at a bargain price. In addition, business customers are often lured with generous maintenance contracts, replacement vehicles during their stay in the workshop and much more. While the loan for motor vehicles is recommended as an installment loan for private use, business vehicles should often be leased better.