FINANCING
Few buyers pay for a car entirely out of pocket. We explain the usual routes, how they differ and how to spot an expensive offer. The comparison itself is handled by our partner.
You borrow the amount from a bank and buy the car outright with it. Usually the cheapest route, because you arrive as a cash buyer and can negotiate on price. The interest rate and the monthly payment are fixed from start to finish.
The dealer arranges a loan through the bank it works with. Convenient, but often with a large final instalment, the balloon. The monthly payment looks low, while the last payment is very high and then has to be refinanced or settled in one go.
You rent the vehicle for a period and hand it back. You never own it. Watch the agreed mileage and the condition on return: extra kilometres and damage are itemised and charged at the end. Leasing can make tax sense for a business, rarely for a private buyer.
Offers can only be compared through the annual percentage rate, because it also contains the fees. A low monthly payment on its own means nothing: it may simply come from a longer term and cost considerably more in total. Always work out the sum of all payments.
Frequently sold alongside the loan and it makes the credit noticeably more expensive. It is voluntary, and the loan may not be made conditional on it. Check whether you actually need the cover before you sign.
Typically an ID document, proof of income for recent months, bank statements and a Schufa credit report. Until the final instalment the registration document part II normally stays with the bank, which holds the car as security. Consumer loans carry a fourteen-day right of withdrawal.
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The comparison runs on Tarifcheck, an independent comparison service. You enter the amount and the term and see the conditions of several banks side by side, without the enquiry affecting your Schufa score.
Go to the loan comparisonWe arrange no loans, recommend no individual offer and give no financial advice. The link above is a partner link: if a contract is concluded through it we receive a commission, and the price for you is unchanged. Your contract is solely with the bank.