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Car Loan – cheaper than auto banks finance

It’s not just about buying the car cheaply. In addition, it is worthwhile to look closely at the car loan. But car buyers do not always exhaust their options. Instead of using a loan calculator and looking for low interest rates, they opt for expensive car finance.

If you want to finance your next car cheaply, you should not make a hasty decision. After all, the range of car loans is large, not only the automotive banks offer good financing solutions. The Merlo banks have long been at the forefront – and not only in the financing of used vehicles, but also in new cars. A low interest rate in conjunction with a coordinated maturity are close to hand.

We show what is important in motor vehicle loans. Our calculator helps to find the right car financing.

Your benefits in car loan at a glance

Your benefits in car loan at a glance

At this point, we would like to clarify the advantages with which the car loans recommended by us score points and easily outstrip the credit offers of many automobile banks.

  • Attractive interest rate

    It attracts low lending rates, which promise a favorable financing. By means of comparison it is quickly determined which bank offers the best conditions.

  • Coordinated monthly rate

    The term of the loan financing can be optimally matched to personal needs. The result is a monthly installment that fits perfectly with your budget and guarantees a quick repayment of the loan.

  • Paid quickly

    No tough bargaining with the bank. As an applicant, you know immediately whether and on what terms the car financing can take place. If the credit approval of the bank before, the loan amount is transferred immediately to the account of the car buyer.

Car financing process

Car financing process

First, the appropriate car loan is requested by application. Afterwards our consultant informs about the feasibility and conditions of the car loan. Then it is only necessary to send the required evidence to the bank. If the loan is approved, the loan amount will usually be transferred within one to two business days.

There is neither down payment nor a high closing rate. Instead, repayment is based on constant monthly payments. So the financial burden remains the same, which means more security. Here is a tip: The financing period should not exceed the planned useful life of the car in any case. Nobody wants to pay installments for a car that was sold long ago.

Risks in car financing

Risks in car financing

Car dealers and car banks are becoming more and more creative when it comes to attracting customers. Unfortunately, the financing solutions offered are far from being as attractive as they may seem at first glance. Whether term or interest rate, with some forms of financing lurk significant disadvantages that we want to point out.

  • leasing

    It’s sometimes impressive to see what great cars are available for an impressively low lease rate. However, no ownership of the car is obtained, instead the lessee pays exclusively for the use of the vehicle. If he had opted for a car loan, the car would belong to him in the end.

  • balloon financing

    This form of dealer financing is now widely used. With her comes the big end only at the end. The first few years, the financing scores with a very low monthly rate. But then a full final installment is due or the vehicle is on new terms – usually considerably more expensive – further financed.

  • 3-way financing

    Although referred to as financing, is initially nothing but a lease with different connection options. Either the vehicle is returned at the end or the lessee pays a high final installment and takes over the vehicle or he completes further financing. The installments are not credit installments but are initially considered as leasing installments.

No question, the low monthly rates are tempting. However, they bring enormous restrictions because the vehicle must be returned or later followed by a costly follow-up financing. Those who choose a good car loan will in most cases have to spend a slightly higher loan installment or finance longer, but in return benefit from maximum cost security. Once the car loan has been repaid, the car remains in its own possession.

Car loan comparison

Make the comparison now. You determine the loan amount and term, we determine the best conditions for your car loan from numerous loan offers. Whether new or used cars, do not finance prematurely at the dealer. With our calculator we determine for you, where attractive credit conditions lure.

Merlo bank vs. Vehicle bank

Merlo bank vs. Vehicle bank

In distribution, the banks of the automakers are excellently positioned. They are often said to provide the cheapest car financing. However, this is a strong generalization. The best credit conditions do not exist automatically at the dealer. Installment loans can offer the better interest rates. It may also matter whether you want to buy a new vehicle or a used car.

  • New vehicles

    Your dream car is a new vehicle? In a new car, it may indeed happen that the dealer offers the cheapest loan through his Vehicle bank. Often then there is a subsidy of the automaker, in order to promote sales. Otherwise, it is quite possible to finance through a Merlo bank at similar interest rates.

  • Used vehicles

    If you want to finance a used car, you will almost always find better car loans at Merlo banks. Here, the auto banks are relatively expensive, so it is essential to guess synonymous to a credit comparison. The interest difference between a cheap installment loan and the car loan from the dealer is often great. If you finance your dream car with the right Merlo bank, you can really score in the interest rate.

Thanks to the right car loan the purchase price

Thanks to the right car loan the purchase price

There is another reason that speaks against financing at the Vehicle bank. If you finance through a Merlo bank, you can have the loan amount paid out to your own account and offer the car salesman a cash payment in return. Here, many car dealers can not resist and grant a hefty discount. It offers the chance to buy the car cheap and save at the same time thanks to low interest rate on car loan.

Whether the dealer grants the cash payer a discount on the purchase price should be inquired in any case. The cash payment attracts a savings that makes the dream car often much cheaper. Even if the interest rate of the installment loan is higher, sometimes you can still get a nice savings. But that should not be the goal. Ideally, the dealer lowers the purchase price and at the same time the car buyer benefits from low interest rates of the Merlo bank.

Insurance around the car loan

Insurance around the car loan

Almost all banks offer supplementary credit insurance in addition to the loan. If the scope of benefits is considered to be high and, for example, unemployment is included, a degree may make sense, provided that the contribution is correct. In many cases, however, it is not, because the insurance only leads to unnecessary additional costs.

Much more important is a good hedge of the car. If you finance your next car to a considerable extent, you better choose a car insurance with fully comprehensive coverage. Just imagine, it comes to self-inflicted accident with total loss. Without this protection, the car would be gone, but the loan would continue to be repaid.

Car loan with low interest rates thanks to comparison calculator

Car loan with low interest rates thanks to comparison calculator

The choice of car loans is bigger than ever. This does not make the search any easier, as there are sometimes very significant differences in the conditions between the loan offers of the individual banks. These are by no means limited to the debit interest, but concern other financing components, such as maturities and special repayments.

Incidentally, the interest rate differentials should not be taken lightly. Both new car financing and second-hand car financing are usually about stately sums and medium-term maturities. As a result, even small interest rate differences can lead to significant additional costs. Those who compare cleverly find a cheap car loan and thus save money.

The search is easy. With our loan calculator for car loans, it is quickly determined which banks attract the best credit terms. Information about the desired loan amount and financing period is enough to ensure that you receive a coordinated financing offer with a low nominal interest rate in a timely manner.

questions and answers

Do I have to hand in my registration certificate?

That depends on the respective car loan. Some banks insist on this, but in return they also give away particularly attractive annual interest rates. For most loan offers, however, it is not necessary to deposit the vehicle registration letter or the registration certificate Part I.

What if I want to sell my car earlier?

Meanwhile, banks are required to allow the installment loan a simple return. When selling the vehicle, it is thus possible to exit earlier than the dealer financing or even a installment loan.

There may be a fee, the so-called prepayment penalty. It is limited to a maximum of one percent of the remaining debt. Fortunately, there are banks that allow early exit from financing without charging fees.

How do I get out of expensive balloon financing?

It is best not to complete such a vehicle financing at all. If this is already the case, a high final installment will be due at the end of the term. Most banks and dealers speculate in balloon financing that the customer accepts the expensive connection conditions. The smartest way out is usually not to get involved in this follow-up financing. Instead, it is advisable not to finance through the car bank, but to take a cheaper installment loan. With him, the remaining debt amount will be replaced, so that lures thanks to its attractive credit conditions a whopping savings.

Is the lease contract really such a bad choice?

Leasing is so common because this form of dealer financing seems so enticing. Suddenly, the dream car seems to be within reach. But the leasing rate is not that low, the rate for a loan would usually only be slightly higher. The decisive factor, however, is that leasing does not give ownership of the car. If the lease ends, the car is returned. The lessee only paid for the use the whole time, but does not own a car at the end.

Potential lessees should therefore check whether the lease contract is really attractive. Often it would be better to choose a installment loan. In conjunction with a slightly longer duration (eg with a financing period of five years instead of a leasing period of three years), the credit rate may even be lower than the leasing rate.

Which debit interest does the loan calculator offer?

The interest on which motor vehicle financing is possible depends on the individual case. Several factors decide which borrowing rate the loan calculator offers at the end. Above all, loan amount and term influence the loan conditions very much. The fact is, no-one should hastily conclude dealer financing or choose a lease contract. It is better to compare interest rates with the loan calculator. After all, it’s about buying money when buying a car. If you invest this time and choose the right loan, you save money.

Car loan comparison

Make the comparison now. You determine the loan amount and term, we determine the best conditions for your car loan from numerous loan offers. Buying your dream car will make you enjoy a favorable interest rate.

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