Are you looking for low-interest loan for used cars? Would you like to use the loan to buy a vehicle or take out the vehicle loan on your existing car?
Our used car loan credit advisor presents you with options that are available for financing a used vehicle. You will also learn how you could use your existing vehicle for credit requests.
Used car credit – vehicle purchase
The most common reason to look for a used car loan is to finance vehicle purchases. All buyer groups face the problem of having to spend a lot of money on their purchases. As in the past, driving a student car from the farm for a few euros is a thing of the past. Every car dealership must give a guarantee. Inexpensive end-of-life vehicles are only exported.
On the professional car market in Germany, there are only vehicles whose repair risk is assessed by dealers as manageable. Your prices are accordingly high. Young used vehicles from a premium brand can exceed the original price of less well-known brands. Statistics show that used vehicles are bought by the dealer about as often as new vehicles.
Hoping for interest-free credit for used cars in light of the prices turns out to be a pious wish. Subsidies to promote financing are reserved for new vehicles. For used vehicles, mostly simple final installment loans and regular installment loans are offered at interest rates that are easy to undercut. The aim of interest rate policy is to attract as many cash payers as possible through external financing.
Debt financing of the car purchase – loan comparison
There is no shortage of offers and loan models when it comes to buying a newer used vehicle. Financing models such as those offered by the retailer – simple final installment loans with low current installments or classic installment loans – are also offered by direct banks. Framework credit for vehicle purchases would also be conceivable if the creditworthiness is very good. The peculiarity of this loan model is that there is neither a fixed rate to be paid nor the vehicle registration document.
Credit for used cars as a credit line is particularly interesting if the vehicle is only to be used for a short time. – An example of this would be to bridge the waiting time for the self-configured new car. For example, the waiting time for a Tesla vehicle can currently be around 12 months. However, that is not certain. Thanks to the many pre-orders, the production capacity is to be increased.
During this time, whether driving a used vehicle for 6 months or 12 months, mobility is maintained. The credit line has the flexibility to remain operational at all times. – When the new car finally arrives, the used car can change hands immediately. For less flexible financing requirements, it is advisable to finance the used car purchase quite conservatively. Final installment credit for used vehicles is offered, but problems may lurk if the final installment is to be financed again later.
Car loan with the vehicle letter
Financing the purchase of a vehicle is not the only reason for used vehicle credit. Each vehicle represents a real asset. The real value can be converted into euros by selling. But, even without selling the vehicle, the value remains useful. Used for loan requests, it could improve personal creditworthiness for lending. A real asset loan can be secured in the amount of the mortgage lending value.
Neither banks nor car owners can reliably and neutrally assess how high the mortgage lending value is in individual cases. But experts offer their support. The DAT valuation agencies prepare a valuation report for the vehicle for around 150 euros. The mortgage lending value can be derived from this report. Depending on the regulations of the loan provider, the mortgage lending value corresponds to approximately 50 to 60 percent of the current real value.
Mobility credit with poor creditworthiness – repair of the used vehicle
It is not only vehicle buyers and vehicle owners who are looking to upgrade their personal creditworthiness for lending. Only a few employees can do without an operational vehicle. The older a vehicle gets, the further the risk of repairs increases. The problems are concentrated in rather financially weak households. There is a repair jam. Not everyone can afford a loan to repair or buy a replacement vehicle.
At some point, sitting out just doesn’t work anymore. At least the spare parts would have to be bought. Even so, the household budget is facing a tough test. A quick loan for car repair would be helpful, which despite the poor credit rating bridges the time until the next payday. Mini loan providers have a solution to the problem.
For example, Vexcash offers mini credit, even for first-time applicants, with a payment within 24 hours. You could apply for a quick loan, between 100 euros and 500 euros with a 30-day term. Short term and small loan volume allow lending even in spite of limited creditworthiness.
Used car loan – possible through Good Finance?
Credit institutions are not positive about every loan request. Commercial lenders are now very careful to only approve secure lending. Taking risks doesn’t pay off. Due to the key interest rate policy, many savers also fall by the wayside. Instead of receiving interest, there is a risk of negative interest on the savings book.
With serious credit brokerage from private to private, Good Finance creates a good solution for savers and prospective customers. Good Finance offers savers the opportunity to invest safely and at the same time with interest. Loan for used cars is possible to buy a vehicle or as a loan with the vehicle letter. Securing real assets appreciably increases the chances of financing at a fair interest rate.