Get you dream car - easy and to a great price!

The prices for new and used vehicles in Germany are constantly changing and if one would like to buy a new car he must usually use the help of a financial institution.
If you would like you buy a new car you have the following options of payment:


  • Pay by cash

  • Car loan

  • Car Leasing

  • Installment loan


As you can see banks and other institutions in the area of car financing have many different offers and financing options. In the following article we have provided some information and tips on how you can finanance you car.

The car loan is similar in design as the traditional installment loan. This means that the car loan has the following characteristics:


  • Lending depends on financial standing

  • The money is paid in one amount

  • Repayment has to be made in monthly installments

  • Partial redemptions are always possible

  • There is a fixed rate of interest the whole time

  • With payment of the last installment the financing is complete and the vehicle belongs to the customer



If you want to buy a vehicle using this favourable financing option there are many different providers who can help you.

To keep track we recommend that you always perform a free loan comparison beforehand.

This can be simply done via the internet and save a lot of money and time. You just have to make sure that you compare the annual percentage rate for different offers.

The nominal percentage rate does not include all costs and charges that may arise in connection with your loan and is not a good base for a comparison. German credit institutions have always to indicate the annual percentage rate (listed in the PAngV).

You can apply for a cheap car loan at almost all banks nowadays (a credit without Schufa clause is rarely possible).
Lately, the biggest car manufacturers have their own direct banks which allows them to offer customers car loans and other financial services.
A big advantage of the auto loan is that you can pay your car dealers cash and therefore receive attractive discounts.
The savings can be even bigger than the expected interest charges.
Even people who want to buy their new vehicle directly from the manufacturer can expect attractive discounts.

As already mentioned the car loan will be repaid in monthly installments of constant value. This makes a long-term financial planning possible for the customers.
The loan rates consist of the following parts:


  • Interest amount

  • Repayment



The interest amount is higher at the beginning of the period and will be reduced during the repayment while the amortization portion rises. Of course, this development does not affect the level of rates you have to pay.

Like most other consumer loans the car loan can be secured by a payment protection insurance that is usually optional but always recommended.

In case of disability or unemployment the repayment can become very difficult or even impossible.
The same problem occurs if the main breadwinner of a family dies during the repayment period.
You can be protected with a payment protection insurance.
A payment protection insurance handles the following cases:


  • Disability and unemployment -
    In this case the insurance company pays the installments for the duration of the disability or the unemployment

  • Death of the insured person -
    The insurer will repay the remaining debt in one amount so that the bereaved don't have to worry about the loan.



With such an insurance you can be sure that the funding and the financial situation of your family will not be compromised.