We have already said that a car loan is characterized by low interest rates . Are you wondering why? The explanation is simple: the bank has additional security compared to unrestricted loans. The risk for the bank is lower because the car can be turned into money again if necessary.
The bank can also take the car directly as collateral. In the case of such transfer by way of security , in which the bank receives the registration certificate Part II (Kfz-letter) as credit security, the car then belongs until the bank's loan has been repaid in full.
If you want to buy a car, you have several lenders to choose from. For example, you can get your car loan at
your house bank, the savings bank, a direct bank or
close directly with the dealer's or manufacturer's car bank.
There are also some advantages and disadvantages to be weighed, which we do not want to keep from you. In any case, it is important that you find out from the various providers before you buy a car and take out the car loan and compare the loans and conditions in order to get the best offer for you.
If you decide to take out your car loan with your house bank or a direct bank, the loan works like a classic installment loan. Means: You receive the entire loan amount from the bank in one go and can therefore act as a "cash payer" at the car dealer and thus secure yourself a proper percentage on the purchase price.
You then pay your car loan back to the bank in the normal way in the predetermined monthly installments (including the effective annual interest rate ) over the entire term and you are debt-free again when you pay the final installment.
If you go to the dealership for advice on a purchase, the seller will very likely offer you the Car . The dealer will usually speak of zero percent financing . But be careful: Even if this type of financing sounds great at first - after all, you don't have to pay any interest or fees - it doesn't have to be the best offer. This is because the trader has to pay a large part of the interest subsidy himself. It is unlikely that he will give you an extra discount on the vehicle price.
In addition to zero percent financing, car dealers also offer car loans in the form of balloon financing , a car loan with a final installment, or three-way financing .
In contrast to a normal motor vehicle loan, the bank, i.e. the installment loan, finances a balloon only in part no credit check car finance of the loan amount. The remaining amount, which may well be 50 percent of the total amount, must be paid back to the car bank as the final installment at the end of the term . The advantage of balloon financing is that the monthly rates are comparatively low.
An example: While you are repaying the purchase amount of 10,000 euros at your bank over 48 months, only a financing sum of 6,000 euros is required for balloon financing. The remaining 4,000 euros are then to be paid as the final installment. With a loan of 6,000 euros, the monthly installments are of course lower than for the 10,000 euros.
In addition to balloon financing, there is also three-way financing , which is a special form of balloon financing. The main focus is on the final installment, which the borrower can pay in three different ways (hence the name):
The final installment is paid in full in one fell swoop. In this case, the vehicle is completely in the possession of the car buyer.
The final installment itself will be financed again. The auto bank makes a corresponding offer to the buyer with interest costs and the corresponding monthly installments. The car only belongs to the consumer after repayment.
The final installment is exchanged for the car. In this case, the car bank makes the offer to take back the vehicle at the end of the loan term. This will settle the open closing rate and the car belongs to the bank.
Ideal for : car banks are suitable for commercial people aged 23 or over (e.g. freelancers, farmers and foresters, traders or private individuals with a SF-Class I driving license).
How it works : The mobility package is an all-round carefree package that includes car insurance, letters of credit protection, guarantee and repair insurance as well as other services such as maintenance, wear and tear and tires. So there are no additional costs. You do not have car finance no credit check to pay for workshop costs, but the lender. Mobility packages are usually concluded with short installments with monthly installments. This is why this car financing is not suitable for borrowers who pay off long and cheaply and do not want to commit themselves to a repair shop. The mobility package is usually offered by so-called car banks. The monthly rate is based on the purchase price of the car and the duration.
Ideal for : The three-way car financing is ideal for the undecided.
Here's how it works : With three-way car financing, a down payment must be made in a flexible amount. Thereupon a monthly installment due according to the term, eg 36 months, is due. Around 30-50 percent of the purchase price must be paid at the final installment. The borrower can now choose whether to keep the car or return it. If he decides to return the car, he doesn't have to pay the final installment. If he wants to keep the car, he can pay the final installment immediately or negotiate a new contract with the car bank for the repayment.
Ideal for : The installment loan is ideal for determined car buyers who know that they want to keep the car after the last payment.
How it works : The installment loan is the classic car financing. The installment loan is offered by conventional banks, but also by car banks. Installment loans are available as 100 percent financing or with a down payment. In addition to the actual purchase price, interest payments are made. The interest rate always depends on the car model, loan amount, term and your personal credit and financial situation.
Your creditworthiness describes your solvency or your creditworthiness and is checked every time a car loan is granted! If you have a good credit rating, this means that in the past you have always met your payment obligations in accordance with the contract. This will be rewarded with the fact that it is more likely that you will be accepted for a contract or loan and will be offered lower terms. However, if you do not have a good credit rating, this is usually associated with higher conditions. In extreme cases, you may even be rejected with a bad credit rating for a contract or loan!
With a good credit rating, you increase the chances of a successful contract or loan and can even save money!
At bonify you have the opportunity to check your creditworthiness free of charge and without any obligation. If you discover entries that do not correspond to the truth, you can easily have them corrected directly via bonify.
There is no specific state aid for the purchase of a car, dedicated to the most deprived. State aid comes mainly from bonuses which motivate the purchase of one type of vehicle rather than another. Ecological bonuses (bonus) with the purchase of a low-emission car, or the scrapping bonus if you get rid of your old car. This kind of premium can significantly lower the final price of a car.
But nothing that allows the buyer to pay in installments. You have to look at the side of other types of aid, which, even if they will not allow you to buy a car, will help you get around to find a job used car dealerships no credit or go to work: ask Pôle Emploi, which offers mobility aids, or use the Mobili-Pass. I talk about it more in my article on moving.
There are associations which offer to help people in serious financial difficulties to move around, to have a car when they need it. The Aid'Auto association, for example, aims:
In practice, the association rents cars at very reduced prices to people who need them to go to their place of work or to go to vocational training. 23 euros per day the rental of the vehicle, regardless of the number of kilometers traveled. It is, in an emergency, a good palliative to a car loan, don't you think? Especially since the beneficiary will only have to pay 5 euros, the rest being from the pocket of the association's kind donors. This cost can even drop to zero for special situations. On the other hand, and it is natural, the fuel will always be chargeable to the beneficiary.
Another association,makes it possible to have a car at a very low price for the most precarious, who absolutely need it to find a job. Autos du Coeur repairs cars that were sentenced to breakage, sold free of charge by their owners to the association.
It is difficult to obtain a car loan when you are FICP, whereas it would allow you to buy a car, essential for the return to employment. The automobile is a basic good when one is looking for a job.
There is no shortage of media reports listing which groups accept donations, often with little advice on what kind of help these organizations can offer.
After researching disasters and teaching students how to be effective as a philanthropist, I learned that it is difficult to make good decisions about donations - especially when there are many urgent needs and countless ways to spend charitable dollars. Here are some best practices to consider before contributing.
The ideal way to show your compassion is to donate money to a charity you respect, instead of sending boxes of diapers and cans of canned chilli.
It is easy to remember disasters personally: "What if it were me or my family?" And imagine what you would need if you suddenly became homeless: clothes, food or toys. But given donate car to charity houston program goods often eteriorate in emergencies . These donations can do more harm than good if they intervene in disaster relief.
Also, you probably won't know what people need on the (soaked) floor.
But where should you send that money? It is generally a good idea to support groups that operate in the middle of a disaster. You can give money and other help to the people who need it directly.
But do your homework first to learn about an organization's past performance. Established organizations are usually the best choice because they are best placed to have people, experience, infrastructure and roots in the affected communities. National organizations such as the Red Cross and the Salvation Army have many years of success in disaster relief.
Each disaster raises questions about the relief efforts of established organizations, such as the Red Cross funds that were donated to Superstorm Sandy for PR activities and other activities that were not directly related to relief efforts and the Salvation Army decided to with hold relief after the to spend the same disaster later in the recovery process. When you give, it is important to keep this story in mind.
If you prefer to give local support groups that are firmly rooted in the affected area. In Harvey's aftermath, this could meanUnited Way from Greater Houston and the Greater Houston Community Foundation , both of which have set up relief funds and have a long history of serving the local community.
You can help organizations by using tools like charity navigator that assesses nonprofits based on several prformace matrices . It has compiled a list of highly rated Tezas groups involved in relief efforts.Guide is another useful resource. While it doesn't evaluate charities, it does provide basic financial information about them and allows nonprofits to upload information about their programs and results to help you make your decision. Guidestar also offers guidelines on giving during disasters and a list of groups active in relief efforts.
Take a global tour of the vehicle to check the condition of the bodywork, front and rear bumpers, muffler, locks, tires and rims. Open and close all doors, trunk and bonnet included. Drive the vehicle yourself for several kilometers, varying the surfaces and the gaits (in town, on the road and on the highway). Test the braking: the vehicle must keep its course. Shift through all gears, including reverse. Make sure the gears are flexible and that the clutch does not "graze". If noise or smoke seems suspicious to you during the test, ask the seller or ask to have it checked by a garage. If in doubt, ask to have a lift check carried out by a professional.
- Check the general condition of the vehicle:
Shades of paint may be signs of recent renovations; the doors must operate without resistance (doors, electric windows, central locking); the mileage recorded on the drain label stuck on the oil pan, on the get a used car from goodwill inside of the door or on the maintenance booklet must be less than that of the meter. Make sure that the spare tire is present and that all four tires are evenly worn.
- Ensure proper operation:
Check the vehicle equipment (seats, air conditioning, electric windows, headlights, wipers, etc.) and special accessories and equipment (car radio, additional seats, roof racks, baby seat, winter tires, etc.)
- If you are ready to buy, don't forget the paperwork. Ask the seller for the gray card and check:
- - the conformity of the vehicle with the registration card (registration number in particular)
- - the conformity of the vehicle with the description of the advertisement.
Request the technical inspection report (vehicles over four years old), the maintenance book and / or the invoices. Check the dates and mileage of the timing belt replacement if it has been done.
- Above all, do not drive the vehicle you have just purchased without being insured! The operation can be made by simple phone call to your insurer by providing the elements of the registration card, the nature of the use, the place of garage, the desired date of the effective date of the contract. The signing of the contract can take place a posteriori.
Insure your used vehicle. With a simple call to your insurer you can update your insurance. Simply provide the registration card information, the type of use, the place of garage, the desired date of entry into force of the contract. The signing of the contract can take place a posteriori. - Register your vehicle. Send by mail to the prefecture the upper part of the vehicle registration card, annotated with "sold on ..." by the seller, within 30 days of the purchase of your used vehicle. The registration certificate can be completed online.