Car loan with little interest – cheap and fast
Only the purchase price is paid in installments. But car dealers don’t have to give away money, of course. Possible “interest gifts” and discounts are already included in the list price. Around 10 percent discount is realistic if the new car is financed “ with dealer credit”. Cashpayers, on the other hand, can hope for much greater courtesy. According to “SZ from 2017”, car dealerships give cash payers around 30 percent off new cars.
The number is always dependent on the brand and model. But, it does set the course. New vehicle buyers systematically save if they take out a car loan with little interest from an external bank. The loan makes it possible to act as a cash payer in the dealership.
Favorably leveraged – sample invoice
For example, the vehicle costs 24,000 USD. It should be financed through the manufacturer’s bank, then the dealer gives about 10 percent discount. That corresponds to 2,400 USD. Interest-free without down payment would thus be financed 21,600 USD. For small installments, 72 months runtime would be appropriate. The bottom line is that the car buyer pays a monthly installment of 300 USD.
Car loans with little interest from a direct bank would make the car buyer a cash payer. This gives him the chance of a 30 percent discount. That’s a whopping 7,200 USD. This leaves a credit requirement of $ 16,800 for external financing. According to 2/3 example, they could currently come from Lite Lender at 2.79 percent APR. Financed at this interest rate, the monthly rate (despite interest) is $ 253.42.
For a car loan with little interest, the total interest costs are 1,445.96 USD.
Conclusion – sample calculation
Monthly, the car buyer pays – despite low interest rates – 46.58 USD less. In a direct comparison, he saves a total of 5,754 USD instead of “only” 2,400 USD – of course after deducting interest.
In other words, he saves an additional 3,354 USD.
Buy used cars – pay little interest
Car buyers are looking in vain for the offer of interest-free vehicle financing for used vehicles. Car dealerships do not have the chance to “slip” interest rate sponsoring onto the price “unnoticed”.
A look at the “Schwacke List” would be enough to expose the trick. Even the car loan with little interest is not the rule if the used car is financed through the car dealership. Quite the opposite. The loan is offered at market interest rates.
However, in line with the market for providers of the higher price level. The offers are roughly in line with the house bank’s interest rate.
For example, at the Best Bank, 10,000 USD can be financed for the used, with an annual interest rate of 3.99 percent.
Current Interest Rates – Comparison
Car loan with low interest rates is not necessarily 3.99 percent APR for car loan. In a loan comparison, Lite Lender offers the same loan at 2.79 percent APR. Or the “Best Bank dream loan” for civil servants at 2.89 percent effective interest per year. Another example would be Cream bank’s quick loan. For this car loan, too, there is only 2.95 percent effective interest on the statement. Incidentally, all of the examples mentioned in accordance with PAngV.
The starting interest rates for car buyers with the best credit rating are still significantly lower. The bottom line is that about 1.0 percent effective interest can be saved through debt financing. With a loan of 10,000 USD, calculated over 48 months, around 200 USD. That makes the “cabbage not fat”.
But there is more in it.
Used cars – from private
Buying a vehicle on credit is always a combination business. With a car loan with little interest from a direct bank, a few USD in interest savings are realistic.
But, the savings potential is much greater if the intermediate trade ceases to exist. With used cars, the desired one can be mostly discover multiple times from private.
- Construction year
- and mileage
Most cars are sold privately, for example to the dealer EK. A realistic savings volume at the retail price of around 20 percent would be realistic. With a car loan of 10,000 USD with little interest, roughly 2,000 USD in purchasing savings. In addition, 200 USD in interest savings. The bottom line is 2,200 USD through systematic savings in the right place. On top of that, all vehicles are “buyable” again for novice drivers. Car dealerships export the “old treasures” regardless of their condition.
Cheap car loan – problem cases
Low-interest car loans are always granted depending on a sufficiently good credit rating. This means that applicants who really need little interest and low installments are often excluded. They are considered a “problem case” because, for example, their income appears too low or their score “leaves something to be desired”. The self-employed are also affected. Again, it is the loan comparison that quickly leads to low interest car loans. Because, also risk credit is included in the comparison.
Employees with a weak score can work out credit opportunities on credit portals. Also at Capital Lender. Your “extra credit” is a proven problem solver.
Freelancers can find offers through the portals and, for example, at Barclaycard.
Clear conditions – apply right away
When the signs are difficult, it is not easy to correctly assess your own credit opportunities. After all, applicants are not financial professionals.
But, especially with “risk credit”, the fluctuations between low interest rates and very high borrowing costs have a very clear impact. The easiest and fastest way to get a cheap loan is to send a non-binding inquiry to Best Bank. The portal checks the loan request in a timely manner. For this purpose, Best Bank provides a “risk-free” credit bureau query. (Condition request).
Both the credit opportunities at the different banks can then be assessed. But also which car loan with low interest rates actually enables the cheapest interest rate.
This saves interest, time and disappointments.
Conclusion – save with a system
Buying a car offers numerous options to avoid paying too much. You can save a lot on car loans with little interest for new cars as well as on used ones. The bottom line is that savings between 20 percent and 30 percent are optimally financed. By the way, a car loan with low interest and a high final rate is also possible online.
However, we still recommend that you conclude with the same rates until the end.