KFZ final installment continue to finance – small load with hook The so-called balloon financing enjoys more and more large popularity. This allows car buyers to finance a car model that would otherwise have been below their means. Due to the low monthly charge, balloon financing is also suitable for customers whose wallets are not so bulging. However, this type of financing has not only advantages but also disadvantages.
Find your car loan
– without obligation& free of charge-
The high final installment can be seen as a disadvantage. Due to the low loan rates, car buyers would have to save up additional reserves so that they can continue to finance the final car payment.
But not all can. So at the end of the term, the final installment must be further financed, which can often mean increased costs.
Customers should know that the calculated residual value of the car makes up the bullet final installment. This is not repaid during the loan period, interest still accrues.
Financing a car with the final installment – advantages and disadvantages
As an advantage can be regarded necessarily that this financing can afford also pensions, which do not have so large margin for installment payments. Thus in the pre-money of the high final installment small rates must be raised, the monthly load keeps within limits.
In addition, the car can simply be sold in order to pay the final installment, which would clear the way for a new car. The disadvantage of financing the final installment of the car can be seen if the car is to be driven for a long time.
Then car buyers must raise the money for final installment. Either reserves have been saved, or the final installment will continue to be financed.
Both variants, however, squeeze the customer's finances for many years. In addition, when you continue to finance the final installment, you can often expect unfavorable conditions.
Especially when the financial situation of the customer has deteriorated.
Car final installment continue to finance – the financing
It does not matter if it was planned from the beginning or if it can be considered as an emergency solution, the final installment cannot always be saved up. Customers must look for continued financing if they want to keep the car.
Credit seekers have then the possibility directly with the car dealer to be inquired whether this provides a follow-up financing. The dealer can then offer a normal installment loan, which is paid in small monthly installments. Thus the purse is spared. The car must not be sold below value. He can, however, continue to finance the final installment of the car at a bank.
If the customer has an excellent credit rating, all credit options are open to him or her. Who then still uses a comparison calculator, which finds suitable offers.
Car final installment continue to finance – which financing fits? The car is selected. Should be purchased. Now the financing is due.
Car buyers can choose from a car loan, the classic installment loan, the balloon financing or three-way financing. Car buyers should thus choose a financing that is economically and professionally viable.
If he chooses the three-way financing he needs to decide at the end of the credit period, whether he wants to keep the car or better hand over. But there are also consumers who opt for a car loan. So they have during the term of constant rates. A fixed interest rate. At the end of the credit period, no final installment needs to be financed, the car belongs to the customer.
KFZ final installment continue to finance – what is to be considered?
With a car loan, two weighty aspects cannot be dismissed out of hand. This is the credit period. The resulting loan installments.
Both can be determined before the start of the contract. Customers should know that a longer term brings low rates, while a short term is characterized by high rates.
Thus the rates are lower with a six-year term than with a four-year term. Even if it is very tempting to pay off the loan within a short term, it should be checked how high the monthly burden may be.
Finally, it must later fit into the budget. Concomitantly, the depreciation of the car must be considered, which then speaks against a longer term.
Thus running times longer than 48 months should not be agreed upon. The loss in value of the car speaks against this.
However, the financial budget must allow for a higher loan installment.
Financing a car with a final installment – the prerequisites
Who decides for an on-line credit, which receives a car financing simply and comfortably. The requirements show the same as with all other installment loans also.
Thus a positive Schufa must be present, the customer must be of age. The reference account is in Germany, he has his residence in Germany.
In addition, he has German citizenship which is proven with a valid residence permit. The sufficient and regular income comes from a non-terminated employment relationship and is outside the probationary period and is not limited in time.
Who wants a car financing, the lender must have pay slips and bank statements of the last few months available. Tax assessment notices are required for a self-employed person.
In addition, a copy of the purchase contract with the visible purchase sum is required or. The vehicle registration document. Make and model of the car are to be indicated, as well as the first registration.
With a used car the mileage is required.
Conclusion:
If you decide to finance a car with a final installment, you should know in advance how the final installment can be financed. If no reserves can be formed during the credit period, the final installment must be further financed.
The car can alternatively be returned to the dealer. Who expects a larger sum of money at the end of the running time, perhaps from a life insurance or another savings contract, has the best conditions for a financing with final installment.
If the final installment must be financed, this can be done at the car dealership or at a bank. But if you choose the latter option, you should do a credit comparison.
This allows you to find favorable providers. However, the credit rating must be impeccable.