Car loan despite installment loan – starting point
Well over 90 percent of all citizens have a “clean” credit bureau, which means that the credit bureau has no negative data that could hinder lending.
A simple car loan despite installment loan is not yet guaranteed, but the cornerstone is still firmly anchored. Existing credit, if the installment is always paid on time and as agreed, even increases the credit opportunity. The existing loan itself is known to credit bureau – thus also potential lenders. Since there are no negative comments, it does not fall into the “category of problems”.
But on the contrary. By making regular payments, the borrower is recommended as a reliable loan partner. In addition, the cheap and unbureaucratic car loan despite installment loan also speaks for the fact that it is secured by real property.
Protection via real assets – car loan
In contrast to the freely usable loan, car loan is assigned with a purpose limitation. In addition, in most cases the lenders can be given the Registration Certificate II (formerly title). The vehicle is transferred to secure the loan. This means that the loan is considered secured up to the mortgage lending limit.
Through free sale of the end-of-life vehicle or by saving, a down payment is also available in most cases. If the down payment corresponds approximately to the difference between the lending limit and the purchase price, the bank hardly takes any risks.
Basically, the vehicle value then secures 100 percent of the car loan despite installment loan. To grant absolutely safe credit, that’s why banks “tear” themselves. Favorable lending rates and an uncomplicated procedure are the logical consequence.
Exploit savings potential – cash payer
Since the competition for car loans is very high, there is basically very little savings potential with interest rates. A few hundred USD in interest are “in there” in direct comparison to financing through the dealer.
In view of the often high sums of funding, however, no high savings. It is different if the total costs are included in the invoice. Instead of 0 percent interest, with the new car loan through the dealer, an average of up to 30 percent discount for cash payers.
Such an offer is of course really worth it. Depending on the negotiation skills, a good 20 percent more discount than with a dealer loan, a lot of money. In whole numbers, for example for a new car for 20,000 USD, not only 2,000 USD discount, but 6,000 discounts.
Sample calculation – from the current comparison
Debt-financed cash payments currently cost Lite Lender – 2.69 percent APR. (14,000 USD car loan despite installment loan for 60 months).
Example according to Astro Finance:
2/3 of the customers pay – 2.69% eff. APR. Of this, 2.66% fixed borrowing rate pa, a total of 14,966.15 USD repayment. The monthly rate is 249.44 USD. Thus, total credit costs of just under 1,000 USD for the entire term. This is offset by the additional saving of 4,000 USD.
The bottom line is a “profit” of 3,000 USD. By the way, all that was required was a simple, paperless online application.
Additional credit – solve small problems
Unfortunately, unproblematic car loans cannot be guaranteed to everyone despite installment loans. For example, income levels could become a problem. A maximum of the budget surplus is available for payment in installments in the household account. For families with children, this can be a bit scarce.
However, many banks offer a practical solution for this. If there is no “sufficient space” for the additional rate in the budget, debt restructuring creates the leeway.
With car loans even at a low, earmarked interest rate. Offered, very straightforward, through the special conditions. The credit comparison under Product Details shows whether the desired bank grants the special condition “debt restructuring”.
Carefully selected, applied for at a low rate, the car loan then fits into the budget without any problems.
Car loan – on a knife edge
Banks are only allowed to grant secure credit under applicable law. Although the real value largely secures lending, this is only “half the battle”. For example, there may be difficulties with self-employment or a small income. The way out of the problem is usually offered directly by the bank.
Car loan despite installment loan in difficult cases is safe to grant if a second solvent applicant assumes liability. Basically, a loan with a guarantor or two main debtors. The guarantee for car loans does not represent an unmanageable risk. Despite the high loan amount, the vehicle should of course be sold in the event of a problem.
Only the difference and the costs remain as a liability risk, with car loans despite installment loan with a guarantor.
Risk credit – car loan despite credit bureau
In the event of a negative credit bureau, the car loan required suddenly becomes a question of fate. In many cases, giving up a car would be equivalent to losing your job. But since credit bureau reports a negative entry, borrowing is not an easy undertaking. Negative credit bureau basically means “increased”, maybe even “high” credit risk.
All regular banks withdraw from this loan from the car loan despite the installment loan. All that remains is the risk loan from a specialist bidder. For a bank loan, the “extra credit” comes into question. Alternatively, private credit. Offered through Agree Bank or Capital Lender.
Bank loans are expected to be faster, but only if the risk is manageable. The private car loan takes a little longer, but it is cheaper at Agree Bank than a comparable bank loan. Then, however, even possible for the self-employed and freelancers.
Credit bureau – car loan despite installment loan
Advertising hype can be found especially when car loan is offered without credit bureau despite installment loan. Unfortunately, the advertising slogans are always only part of the truth.
It is true that credit bureau plays no role in credit bureau-free credit. The car loan comes from abroad really free of credit bureau.
But, it is not a special offer to buy a car and in no way flexible. The Sigma credit bank from Liechtenstein awards:
- 3,500 USD,
- 5,000 USD
- 7,500 USD loan
Lending is only possible to employees. Approved credit is not earmarked.
The real value of the vehicle is not included in the credit protection. The bank doesn’t want the title.
He can stay in the drawer. However, without credit bureau, as some slogans convey, does not mean a car loan despite an installment loan without creditworthiness.
The creditworthiness is only proven without attachable work income.