Car loans belong to the category of loans that are granted most frequently. No wonder the car is needed the most. Therefore, it is not surprising that due to total economic losses or obsolete vehicles always new acquisitions must be made.
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But with a car loan many questions arise. How high are the interest rates? What needs to be considered by the borrower and how can lending rates be compared as easily as possible? All these points can cause confusion. Therefore, the necessary answers should be given here.
What about the interest on a car loan?
In a car loan you have basically two options. On the one hand, the direct credit can be chosen, on the other hand, the normal financing can be used.
With direct credit, interest rates are usually much higher. Among other things, this is due to the fact that no vehicle is normally used as safety here. Therefore, the borrower must bear the risk of default alone, which is usually due to higher interest rates.
However, the runtime also plays a role here, because this can be shorter or longer depending on the vehicle. In addition, some banks require an offer for the vehicle, the amount of which then the credit is awarded. As a result, a relatively small amount is claimed, which can be paid off faster. However, then usually also increases the interest.
Tip on car loan: Compare costs exactly
For financing, on the other hand, there are true dream interest rates. These can even be zero, which is usually the case only for new cars. But beware, because the offers can be deceiving.
Although it is zero percent interest, but the expenses and income for the bank, already included in the purchase price. Thus, you pay basically exactly the amount that would have been incurred in the presence of interest. The regular interest rate, however, is much lower, because this is inevitably withheld as security of the vehicle registration. Thus, the bank is always the seizure of the vehicle open.
How can interest rates be compared?
The fastest way to do this is via a comparison calculator. Here, the purchase price of the vehicle as well as the desired duration and the estimated interest rate can be entered. The calculator then calculates exactly what interest is due on the entire term or even per month and must be repaid.
Depending on the system, you can choose which of these functions you would like to use. So you can either calculate only the interest rate for the current month, or those for a quarter. Other calculators also offer a calculation of interest rates for the whole year, so here is a fairly accurate overview.
The values should be as accurate as possible to obtain realistic results for his loan interest rate comparison. But if you want the same results, you can also use one of the many comparison portals on the internet.
Here are all offers exactly set up. So all important positions can be viewed immediately and usually also other facts can be recognized on the spot, so that one can easily decide which offer is best suited for oneself.
What functions does a loan calculator for car loan interest rates offer?
This varies from computer to computer. Some models provide only the default settings and sometimes only fixed interest rates can be calculated. Other calculators allow the free input of the term and the interest, so you have a greater margin here.
However, there are also systems where the make and model can be chosen. As a result, the residual value by year on current lists can be determined immediately and you learn not only the amount of interest, but also whether the purchase price was correctly estimated.
However one should look around with such computers exactly. Of a vehicle, there are usually many models and series. In addition, these are still classified according to different engines and the displacement and power.
This can also influence the price significantly. So if you have a concrete idea about your desired vehicle, you should look as specific as possible for such a variant on such computers. Usually then also equal favorable credit offers for these models are shown.
Which computers can be used?
Loan calculator for car loans, there are many, but which are worth a4m most? The computers of the banks usually offer a lot of comfort, such as the well-known computer of Santander Consumer Bank.
This offers many possibilities to specify and also gives quite accurate results. Also the system of the first bank and savings bank can convince, because this is very simple and every user can understand on the spot, how the computer works. In addition, the results are output in list form, which significantly increases the clarity.
Nevertheless, banks are of course trying to advertise their own offers. Therefore, with these systems can really be expected objectivity at the most favorable interest. Thus one should rather resort to free computers, which are provided for example by consumer protection organizations.
Here one can rely on the objectivity of the results. However, this always raises the question of whether actually all providers were recorded, because on the different pages are sometimes certain providers recorded, others not. However, these are mostly smaller institutions, all major banks can also be found on all comparison portals.
What are the legal bases for a loan calculator?
Theoretically, there are no legal bases governing the use or offering of credit calculators. This means that the computers are not calibrated and can therefore be used freely in this regard.
However, such a computer must not make grossly false statements, because there are clear judgments that such a procedure can be regarded as fraud if the error is known, but not resolved. Even more is this suspicion in the room, if the results develop to the detriment of the borrower. Therefore, it is better to recalculate in case of doubt.
However, the results can not be used as a basis for negotiating a car loan. The details of the computers are not binding and will therefore not be accepted for specific requests.
This even applies to the computers of the offering banks themselves, because here too only approximations are offered that do not claim to be binding. Thus, the results can only be used as a basis for comparison, but in terms of a concrete offer, because here further factors must be included.
Self-calculate or use credit calculator – What makes sense?
But are the loan calculators really useful or should you rather grab a calculator and a piece of paper? In fact, it can not hurt to check the results of the calculator.
Especially on small portals it can come to mistakes, because here the computers are usually not constantly checked. However, your own bill can also provide another advantage.
So models can be calculated here that do not offer the loan calculator. Thus, many different eventualities can be detected. However, the calculators make it easier for mathematically not really interested people. In general, the results are also correct, so you can use the different systems quite well.
However, one should also make sure that the calculator allows it to include items such as down payments or discounts. This allows you to create very accurate calculations, which also include a possibly different final rate. In this way, the car loan can be very cheap, although there is no guarantee that one of the desired offers actually exists exactly as well.