Very few people can pay for a new car without outside capital – this means that financing is necessary. As you know, there are several ways to Rome, and so it is with a motor vehicle financing – for example, a loan from the house bank or a bank of your choice, financing from the car dealer or a leasing contract. But what should you choose, what are the advantages and disadvantages?
A car loan or a non-dedicated personal loan from the house bank undoubtedly has its good sides: on the one hand, you appear to the car dealer as a cash payer, which means that the purchase price can be negotiated – depending in part on the dealer’s scope and the customer’s negotiation skills , quite large discounts possible. Negotiating the purchase price is much less problematic when paying in cash or using a loan from the house bank than when dealer financing is taken up.
But dealer financing also comes with undeniable advantages: often the interest on such financing is extremely low and not dependent on creditworthiness, often you can even find interest-free car financing – the banks cannot keep up, of course. Nevertheless, you have to compare what is cheaper, because the discount mentioned can be so large that a loan from the bank / savings bank proves to be cheaper than dealer financing.
Leasing is extremely attractive to many consumers – the fault is basically the option of being able to return the car to the dealer at the end of the term. It should be said that as a private person you should basically say goodbye to the idea of leasing a car, and that leasing makes sense, if at all, from an entrepreneur’s perspective.
In addition, there are now also very flexible financing options that are similar to the final options for leasing: the buyer initially buys the car and pays monthly installments, but has not yet decided whether he really wants to keep the car. At the end of the term, a fairly large final installment is due – if this is paid by the customer, the car becomes his property, if he does not pay the final installment, he returns the car to the dealer.