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Car financing: credit often better than dealer offers.

The financial burden of owning a vehicle

The financial burden of owning a vehicle

Our own vehicle is not only a necessary means of transport for millions of workers in Germany, but also a symbol of freedom and independence, and serves not least as a status symbol. The financial burden of owning a vehicle is considerable. In addition to the high maintenance costs due to taxes, insurance and fuel, the financing costs particularly affect the budget of motorists: in addition to the repayment, the interest on the loan must be raised so that there is a significant ongoing burden on the private budget. At first glance, the favorable offers from car manufacturers and dealers, who promise to pay zero percent interest, seem all the more pleasing.

The abandonment of the interest arises from the attempt of the providers to generate a higher sales and should by no means be misunderstood as a gift. Classic Financing The bottom line of a bank with which a loan agreement is concluded is often much cheaper than the dealer offers. Anyone who negotiates a loan with his or her bank and acts as a cash payer against the dealer can often make significant discounts on the vehicle price. The calculation is simple: The interest costs, which are incurred with a usual financing of the car over a loan with a term of four years, are the in each case possible discount. A reduction of the purchase price by ten percent or more is therefore not uncommon.

Vehicle loan makes consumers more flexible

Vehicle loan makes consumers more flexible

In addition, a classic vehicle loan makes consumers much more flexible: Dealer offers are often only valid for a limited period of time or are linked to other ones (for example, some retailers may only choose a certain and predefined equipment or an additional insurance must be taken out) and thus easily lead to disadvantages. The purchased vehicle can be deposited with the lending bank as collateral, so that the lending rates are low. Anyone who compares the terms and conditions of different financial institutions or uses the services of an experienced and competent credit intermediary can, with a bit of negotiating skills, realize the car dealer against first-class conditions and drive the dream car at affordable costs.

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