Especially in recent years, the number of car loans via a loan or through the dealer house bank has risen steadily. Not infrequently, the background for this is the lack of liquidity. The buyer has several financing options available: On the one hand, a car loan as an earmarked loan from the house bank, on the other hand, the financing through the dealer house bank.
Car loan from the house bank
A car loan from the house bank or an online provider is a special purpose loan. It is granted for a specific purpose, in this case for car financing, and is usually characterized by particularly favorable conditions. Nevertheless, the buyer should compare the sometimes clearly divergent contract conditions among the providers: These include not only the processing fees, which can often make up two percent of the loan amount, commission costs, premium (premium, premium) and discount (discount) and interest. A good way to compare different options for car financing is our comparison calculator.
To the comparison calculator
Especially the effective interest rate is of enormous importance. This includes all fees associated with the loan. Online providers are often cheaper, as they waive the processing and administration fees. This is made possible by the smart online business structure, as the providers do not have to provide any branches and thus no consultants. All processes run fully automatically and online.
Include different aspects of auto finance
Furthermore, the cost of the credit depends on the choice of the loan amount and the duration of the loan. In other words, depending on the term, the monthly repayment burden is reduced or increased. Closely related to the choice of the loan amount and the repayment term is also the amount of the interest rate at which the loan bears interest. The conclusion of a residual debt insurance is an integral part of the car loan from a bank or an online provider.
Of course, when it comes to the decision between bank and online credit, you also have to be aware that there is no direct point of contact for problems with online car financing. Any renegotiations of loans, etc. must be clarified by email or phone and if the service turns out to be inadequate, that can be very annoying or even a real problem. In this regard, traditional banking institutions are still in the lead.
The financing through the car dealer house bank
Not only the hard competition among the car dealers, but also the question of financing leads to the fact that more and more car dealers offer in-house financing at supposedly favorable conditions. But especially here caution is advised: Financing by the dealer bank is characterized first by very low interest rates. Even a zero-percent financing is not a rarity. Nevertheless, the car buyers have to calculate exactly here. Often the fees and the financing costs are already included in the selling price.
In addition, there is no possibility for the buyer to negotiate, so that car financing via the dealer bank can be more expensive at the end of the line. In other words, anyone who pays a car directly through a loan borrowed differently has a much stronger negotiating position than someone who, as it were, takes the loan directly from the dealer.