Long was saved, much was omitted. When the big day came, the whole family proudly went to the dealership to pick up the good part. Car buying and borrowing or even leasing is always a very individual matter for the self-employed. At the end of the lease, the driver can decide whether to buy the car or to buy or lease a new car. Anyone who is sure he wants to keep the vehicle should opt for financing with a car loan.
What do you have experience with buying a car in installments? I still have my reservations about that.
In my opinion, it is always the means of decision if you do not have the means to buy the car “liquid”, the repayment term corresponds to the expected “life expectancy” of the car and the interest on the loan is not too high. The only downer is perhaps that it is cheaper to complete a comprehensive insurance when lending.
With most car finance loans, interest rates are not as high, so the extra price you pay over the years is relatively low. However, we did not use the installment offer of the seller, but took out a loan from a house bank. In this way, you can negotiate the discount with the seller and usually have cheaper interest rates than with the seller.
After all, it is always more expensive than putting the cash on the tables, because of course you have to pay the default interest. But if you really drive a car that you can no longer afford, has no choice. But I would take the loan at the house bank and then use the discount at the dealer.
Auto Finance Is it worthwhile to buy a car on credit?
Most of them pay for their new vehicle in cash, most of them pay – and often expire in supposedly advantageous conditions. According to a recent Aral study, 56% of all vehicles – whether new cars or used cars – are financed by loans. “Never before have there been so few payers in the trade as in the past year,” affirmed the head of SF Financial Services AG, Anton Bandschmann, at the presentation of the annual results.
In 2003, the cash payer share was still 64 percentage points. In total, nearly 80 percent of them are secured either financially or through leasing, only a quarter in cash. Although the low interest rate phase dampens the view of savers on their portfolio, but the debtors are happy. Lower interest rates make car financing increasingly interesting. This is ensured above all by the automobile banks.
For example, Mercedes-Benz banks are now financing every second Daimler vehicle, and the competitors of SF Banks or SF Banks have little cause for alarm. The contract volume of automobile banks rose by 2 percentage points to USD 90 billion last year – even though the overall market fell by 4 percentage points. For the banks, playing is comparatively easy at the moment.
Although they often make above-average interest payments, investors currently receive 1.4 percentage points of interest at Bank.