Debt car loan – in demand debt restructuring
There are two common reasons when car owners reschedule their car loan. First, the plan to change vehicles.
So that the “new” remains as cheap as possible in purchasing, the end-of-life vehicle should be sold privately. Without trade-in, on top of that financed by debt, the willingness of the dealerships to grant discounts is surprisingly high. An average of 30 percent (source SZ) give car dealerships under optimal conditions in the price of new vehicles. The second aspect is due to the popular model of final installment financing.
Because, with the balloon loan, the car owner always expects the big final rate at the end of the small current installments. Many are dissatisfied with follow-up financing through the manufacturer’s bank. Instead of sponsored interest rates, she expects an interest rate that is just in line with the market, of the upper middle class. Alternatives to keep car loan debt quick, cheap and convenient are in demand.
Debt car loans – refinance final installment
The first option, if, for example, the final installment for debt restructuring is due, comes from the car bank. If a new vehicle was originally financed, it usually offers a guarantee for follow-up financing. But only if the economic circumstances have not changed negatively. In addition, rescheduling a car loan is always a new loan.
Even as a pre-arranged follow-up financing. This changes the credit terms from the bottom up. The monthly rate usually rises significantly. Interest rates in the upper midfield are responsible for this. For this reason, we strongly recommend a loan comparison. Refinancing car loans using the loan comparison is usually much cheaper. In addition, many banks now allow additional liabilities to be settled “in one go”.
Debt – Debt at the same time
Debting car loans is one of the most common loan requests with earmarking. At the same time, applicants also like to choose to reschedule other liabilities. Basically “tidy up”. They speculate on transferring the low interest rates on car loans to other debts. When it comes to car loans from direct banks, the “little trick” is even allowed in many ways. The loan terms can be seen in comparison by clicking on product details.
If car loan rescheduling is permitted together with other liabilities, the information is advantageous.
For example at the DKB :
The number of debt rescheduling loans is unlimited. With this provider, the debt rescheduling of the car loan costs 3.49 percent APR. (10,000 USD with 84 months term).
As can be seen in the example according to Astro Finance, the interest offer applies to all approved car loans from the bank – regardless of credit rating. Anyone who does not reschedule the overdraft facility at this rate is to blame.
Trigger car letter – sell car privately
Unfortunately, the end-of-life vehicle can only be sold if registration certificate 2 has not been pledged. It is a question of personal creditworthiness whether to reschedule a car loan so that the vehicle letter “comes free” without any problems.
Offers for this could come from the house bank or direct banks. Pay attention to the repayment procedures. Inexpensive debt rescheduling, installment loans invite you to do so. But, the installment loan is always planned for a longer period. The early loan repayment, because the vehicle is supposed to be sold, is not automatically free of charge. So that the bottom line is the optimal savings result, please pay attention to the special conditions.
Only conclude a contract that includes the right to “free repayment in any amount”.
Car loan without property security – typical problems
Debting a car loan so that the vehicle can be sold is not without its problems. The credit rating for the original loan was made up of personal credit rating and property security. Now, however, the real value is no longer a guarantee. Only the “good reputation” as a secure solvent payer secures the credit.
Unfortunately, this does not work in all cases. However, direct banks offer simple ways to prevent possible difficulties. Most lenders allow two people to apply for the loan. Together with a solvent second applicant, the loan is again considered “safe”. As a result, the automatic credit check has no reason to complain. The bank gives the “green light” within a few hours.
Tip – Debt a car safely and cheaply
Against the backdrop of growing lending requirements, applicants feel unsettled. Does everything really work smoothly with the loan approval in individual cases? Debting car loans does not have to be a guessing game. Lite Lender offers the right solution for this. Simply send a “preliminary credit inquiry” directly to the portal without any obligation.
The credit request is immediately checked professionally. ( credit bureauneutral condition request ). Which provider offers the best opportunities to finance cheaply, quickly and easily, is then certain.
Debt vehicle – difficult case
With an average good or very good credit rating, credit institutions receive borrowers with open arms. Low interest rates are not an issue. But, if the credit rating is weak, the wind turns. The main reason for the headwind is not from the banks.
The legislator has tightened the conditions for all “systemically important” lenders. Banks can only grant credit if it is considered “safe”. At almost all banks, it is not the clerk who decides whether this is the case, but the software. Debting a car loan, pledging the vehicle as security for it, can make the loan easier in difficult cases.
But, at the same time, the “old”, probably cheaper interest rate is being abandoned. Of course, everyone has to decide whether the step pays off.
Debt rescheduling loan in difficult cases – provider
In difficult cases, regular lenders do not provide credit. Nevertheless, nobody has to turn to a classic intermediary to apply for risk credit. Suitable providers are represented in the connected credit comparison. For example, rescheduling a car loan – despite credit bureau – would be possible via the extra loan.
Cream Bank is one of the most important “problem solvers” in Germany. 10,000 USD car loan according to Astro Finance cost 9.12 percent APR with extra credit. Another alternative is through credit portals. Lite Lender and Best Bank lead the P2P loan market through their portals.
In the case of a “not so difficult case”, “credit-private” would probably be the right solution. Rescheduling a car loan is possible with this offer at an effective annual interest rate of 7.85 percent. (Read in the 2/3 example according to Astro Finance ). The alternative comes from Best Bank. With the same loan amount and term, the 2/3 example shows an effective annual interest rate of 18.40 percent.
Rescheduling a car loan is more risky and therefore clearly more expensive overall.