The calculator is free and it is very popular to choose a car loan with no final installment.
Closing rates are often a disadvantage
Anyone who takes a car loan calculator without a final installment has more advantages. A closing rate has disadvantages. This loan is often more expensive afterwards. The final installment is offered with balloon financing.
Either this can be paid, the vehicle is returned but there is follow-up financing. This follow-up financing is a normal installment loan that has higher interest rates than that of a car loan. Therefore, many opt for a car loan calculator with no final installment.
Basic requirements – car loan calculator with no final installment
Before choosing a car loan calculator without a final installment, the basic requirements of the bank must be observed. Without this there would be no car loan. The car loan can be taken out if the person is of legal age and can be proven to be resident in Germany. Furthermore, the income should be sufficient to secure the loan.
The credit bureau is checked at German banks. The customer must prove that he has no negative entries. Banks assume that there is no negative entry, otherwise the loan would not exist. With a low income, a loan security can be deposited with a car loan. The bank often determines which one to use. It is not uncommon for residual debt insurance to be taken out.
This should only be recorded under very difficult conditions.
Residual debt insurance – not always useful
The residual debt insurance is often offered on a car loan calculator without a final installment. This is intended to protect the borrower. But it is not that easy. The insurance only comes into effect at a certain point in time. If the borrower becomes unemployed through no fault of their own, the installments will be paid. However, this does not mean that the entire remaining debt is assumed.
Only a certain number of installments are paid, otherwise the borrower has to pay the remaining debt alone. Then it must be demonstrated that the borrower did not slip into unemployment through debt. Residual debt insurance should only be taken out if there are no other loan guarantees. In addition, this should only be included if the contributions can be paid.
It is not uncommon for these to be higher than the credit rate. That would be a very big burden for the borrower.
Comparison calculator – search for the right car loan
A comparison calculator on the Internet should be used to find the right car loan calculator without a final installment. The Smava comparison portal is free and clear. The easy-to-use platform can display an offer within seconds. The list always starts with the cheapest offers.
But you shouldn’t be blinded by the low interest rates. The interest rate given is only for people with excellent creditworthiness. Customers who cannot fully meet the requirements will receive a different interest rate. In order to be able to find out your own interest, a non-binding request must be made.
Then a preliminary interest rate is determined, which is within the feasible.