The loan offers are therefore correspondingly large. But which loan should consumers choose? The customer has the option of taking out a conventional installment loan from the bank. But a special car loan is also an option.
In addition, many dealers offer auto loans with 0% financing. Three-way financing or balloon financing are also up for debate.
The advantage of the latter type of financing is that very low installments are paid during the loan term. But in the end there is the big final installment, which often has to be refinanced if the customer wants to keep the car.
Car loan with 1100 net financing from the dealer
For many customers, this type of financing sounds good, but it should still be considered whether he as a cash payer does not get better offers from the retailer. Price reductions of up to 30% are often possible.
If you then look for a cheap loan with a loan comparison, you can get a really cheap car loan with 1100 net. Another cheap way to get a car is to buy it on the Internet. Customers will find much cheaper vehicles there than at the dealer. So-called configurators are available to the customer on the website.
The models can be viewed there with a 360-degree view.
Find the cheap car loan with 1100 net
Once the purchase price of the car has been determined, the customer can venture into vehicle financing. He can choose a classic installment loan or a special car loan, which is often even cheaper.
The reason for this is that the vehicle letter is deposited with the bank as security. As a result, the loan represents a lower risk for the bank and rewards customers with low interest rates. However, the car then belongs to the bank until the loan is paid. If you want to cover a financial bottleneck with the sale of the car, you cannot do this.
Credit comparison – find the best loan
In order to receive all the conditions of the individual banks, the customer does not have to make a loan request to every bank, but can use the many loan comparisons. At first glance, he sees all providers, with the cheapest leading the list.
Not only the interest rate is important, but also whether free special repayments are permitted or whether installment stops are planned. It is important to know that the interest rates displayed are not relevant for all customers.
Interest is often calculated depending on the credit rating. In this way, customers with good credit ratings also receive a good interest rate. The customer only has to enter the loan amount and the term and then see how high the loan rate is. The loan application can then be submitted to the provider directly via the page.
Based on the data, the customer is given a preliminary loan approval. Only when the lender has checked all credit documents will the final loan approval be given.
Requirements – car loan with 1100 net
Anyone looking for a car loan must also be able to pay the loan installments. In doing so, he should draw up an income / expenditure plan and determine whether the balance shows a positive balance.
Only then should a loan application be made. Especially customers with a rather low income should check in advance whether they can pay a loan installment. The bank will also check this. Income may not be sufficient and a second borrower or guarantor must be named.
Nevertheless, there must be a guarantee that an installment can be paid. Many banks charge at least 1000 USD net. So that a car loan with 1100 net can be approved. For this, the customer must have a permanent position that is not limited.
The credit bureau decides
The customer’s credit bureau is very important when granting a loan. Each bank asks credit bureau before granting a loan. Ideally, this should not be burdened. If it shows negative entries, a loan is usually not approved.
For these customers there is a loan from abroad that does not require a credit bureau query. However, the conditions are not as good as with a loan in this country. Depending on the creditworthiness, up to 16% of interest can be charged. The loan amounts are also standardized.
Only three loan amounts are offered. One time 3500 USD, 5000 USD and 7500 USD. But not every borrower gets this loan. Unemployed or Hartz IV recipients, but also the self-employed are excluded from this loan.
Since the loan is secured by income, a single person must earn at least 1150 USD net. Earning just 1100 USD is not enough
Does it have to be an expensive residual debt insurance?
If the credit rating is not so good, many banks offer residual debt insurance. This is intended to cover any events such as unemployment or disability. However, these insurance policies are very expensive. Not infrequently, they are in the four-digit range.
This amount is added to the loan amount, which makes the loan extremely expensive. Those who have life insurance or disability insurance do not need this insurance. However, if the bank insists, the customer should look for an independent provider.
If you are looking for a car loan with 1100 net, you should be sure that you can pay any loan installments. The credit rate should always be based on income.
1100 net is not exactly a lot of income if the rent and additional costs have to be paid. Income will also affect the amount of the loan, so buying a car will probably be in the area of a small car or a used car.