Leasing, financing, flat-rate – How should I Finance my car?

February 24, 2019

A Bank loan is cheaper?

In special promotions to offer car manufacturers about their house banks subsidized financing. Then interest rates of 0 %, and 1.9% are called. Such conditions you can get at any Bank – the financing, the car dealership is worth it. Under “normal” conditions the funding conditions of the banks were not, however, are not always optimal, however, they are also sensationally bad the conditions are in the normal Range.

Currently, we are living in a time of cheap money. With a good credit rating you can get at a Bank is also very cheap loans – may be cheaper than the letters on the financing through the dealership.

With a loan comparison calculator in the Internet you will find a good chance of a better offer. But be careful: often is the amount of the effective annual interest rate with a “from”.

a Low credit rating and “Scoring”

In the case of banks, you get the attractive, lowest interest rate only if you get in issues, “the credit rating” a excellent Scoring. A 1a rating will be awarded with a high and stable income, the best payment and good residential area. You should not belong to the dream customers of the Bank can deteriorate the conditions of the massif. Then, the seemingly “worse” credit the Bank looks to quickly get better. The car banks to offer any credit-worthy customer, the advertised interest rate. Even if you are only a middling customer, you need fear no charge.

problem customers to make good use of this generous scheme, however, is not. Anyone who enjoys a Bank no credit, get at the car dealership, no financing.

Credit protection

the percentage of the customers do not look carefully, in the case of the insurance of the loan against unemployment and other nasties. The banks, the hedges for loans are frequently extremely expensive. Before you sign, you need to examine exactly what the insurance protects, whether it is of use to you and if you need it. Here distrust is appropriate. Just because you are a civil servant, does not mean that the Bank does not want to insure them against unemployment.

I Can negotiate better, if I pay in cash? 16 portals in the Test car portals: Stiftung Warentest warns of cheap Offers From Gernot Kramper

It is often claimed that one receives at the dealer for more discount if you paid in cash, but usually the not true. In the case of a loan with “normal” interest rate, the dealer earns on the completion of the contract. Why should he be generous, if the Bank makes the business? Special financing terms such as Zero-interest-rate actions will be offered as a discount promotion, usually by the manufacturer, and are largely independent of the margin of the trader. It does not work so the money interest rate advantage values to calculate, and to claim as Barrabatt. Tip: Speak to the possibilities dealer is open.

How do I calculate the cost of credit?

If you believe the Ads, a cost of a car is always only a round sum – about 199 Euro in the month. The truth is usually more complicated. Often the financing is made up of three blocks: down payment, monthly payments in the financing phase and residual rate. Down payment is the amount that you bring immediately. The amount of rates times number of months of the cost during the financing. The residual rate indicates the calculated residual value. Should you want the car keep, you’d have to pay this sum. Should you not have the money in-between, you will need follow-on financing. The sum of the three individual factors, the cost of the vehicle plus the cost of the follow-up financing.

Retail lease? Leasing instead of buying a New car for little money: you will find real Leasing bargains By Gernot Kramper

It is often claimed that Private Leasing wages and salaries, because the cost of vehicles otherwise than on Business of the tax are to be deducted. This view is wrong. In a direct comparison of Leasing and buying Leasing performs often worse, because when buying is often a cash Purchase is and no financing costs are recognised. Who financed the purchase for the price, not because with Leasing, per se, bad. Lease deals are also expensive, because it is the use of factory new or newer vehicles. In the first car in years, the loss of value is particularly large. If you are going to buy, to take advantage of a new car only two or three years, suffers the loss of value in the same way as the leasing customer. The calculation of Leasing is for the customer-opaque than at time of purchase. Decisive for the quality of the offer of two factors: the residual value of the vehicle and the interest rate that is subject to the calculation. Both of these factors can subsidize the lease rate of hidden and interesting for the customer. Leasing is interesting, if: a) the new car is changed regularly.) should be no problems with the sale. C.) should be hidden to occur in the lease terms discounts.

A purchase is more is interesting if: a) the car is very driven in a long time b.) the ability to cash Purchase.

good to Know: The liabilities due to the lease terms of the Banking industry as a credit debt. It is thus possible, with two leasing agreements, the own credit rating completely exhausted. Then it may happen that you receive no further credit.

What is flat-rate services? Buying a car flat rates – For whom is worth the “All-inclusive-car”? Gernot Kramper

In the case of Ford, it is called “flat rate” but also the other manufacturers have comparable financing in the offer. For the monthly Rate there is a extensive package. It includes the selected vehicle, the insurance, the cost of maintenance and an extensive warranty. At an additional cost of only Fuel and taxes. The conditions vary, who is interested in such an offer should, therefore, pay attention not only to lock the ends of Headings, but also on the specific design about the insurance protection. Because a “flat rate”offer includes not only the vehicle, it can be difficult to compare with other forms of financing directly. For those that wants to calculate its monthly payment as easy as possible, these offers, however, be optimal. Really exciting flat-rate services are, however, not by the straightforward calculation, but because they are discounted. Typically, a low financing interest rate.

tip: drivers with high insurance percentage of benefit in the case of flat-rate services are often of a comparatively cheap Car insurance

What is a Three-way financing? Daring Stunt not for the faint of heart: adrenaline junkies rush in a convertible in the deep

this form of financing, the number “Three” twice in the game. First, there are the three typical financial components (down payment, monthly instalment and final payment), and three possible decisions come at the end of the financing: Pay the final payment, refinancing the final rate or return of the vehicle. It offers the customer benefits because he has until the end of the vehicle, use the free decision whether he will accept the car or return. Great thing to say, but actually this is nothing Special. In a normal lease contract or of a flat-rate financing you don’t always have the legal right to take the car to the residual value. Practically, the dealer is reluctant, but never against the sale. Who wants to beahlten the car at the end, should a conventional Finance calculate. The Three-way financing usually leads to a relatively low monthly fees and a high final payment. The residual payment shall be the entire term of over interest. This is for normal and high interest rate is rather unfavorable. Is pimped, the Three-way financing with a low interest rate, nothing speaks against this Form of credit design.

The specific offer decides Crazy Ebay offer Buy this Fiat 500, because “I hate the damn thing” By Gernot Kramper

A real decision on which form of financing is the right thing to do, you can’t meet in the theory. In the car industry, there are countless ideas to promote the car sale, any measure that makes some deals more attractive and others less attractive. Suppose you want to buy a model of the upper middle class is very normal, and Finance. Sure, you could also get a discount. If the manufacturer is defending its market shares, but with Zero-interest Leasing Offers, it may be worthwhile to change the form of financing.