With a down payment for the financing and a final installment, you can also enter this in the finance calculator. First feed our financial calculator with the “purchase price”. That’s just the amount you want to finance – including a possible down payment and final installment. If you finance a car with a final installment, car buyers should calculate the final installment. The calculation of the last installment for a car will incur only a small monthly fee during the term.
Car loan with final installment
In addition to traditional car loans, a large number of automobile banks also offer final installment financing, which is being used by more and more customers. The loan amount is not repaid in full during the loan term, but remains at the end of the loan term. Due to the low repayment amount, financing can often be done at much lower monthly rates.
This gives people with a relatively low salary the chance to pay for their dream car. However, the car loan option with a closing rate is more expensive than without a closing rate, as the following overview shows: The financing for 3 or 6 years (with cash discount) is much cheaper than a car loan with a final installment.
Therefore, we recommend our conventional car loan: In a “normal” car loan, which is designed as installment loan, the purchase price of the vehicle is paid less an installment during the loan period. After the deadline, borrowers are therefore free of debt and the vehicle becomes their property. In contrast, the last installment of a car loan leaves a balance, which usually corresponds to the current value of the car at that time, and in most cases amounts to several thousand euros.
The borrower can either repay this amount entirely or continue to finance it. A third form of installment financing is the return of the vehicle at the end of the contract, especially at the automobile banks. Probably the greatest benefit of the last installment financing is the much lower burden on monthly installments that can be achieved.
Depending on the amount and duration of the loan, the new vehicle may be co-financed up to an amount of less than EUR 100 per calendar month. But not only the financing with a final rate has advantages. At the same time, borrowers should always keep an eye on the final price. But who calculates partial amounts and reserves, can often prefer the classic financing.
The one who decides to continue financing, however, must recalculate the interest.
In the case of the return of the vehicle to the bank, however, there is the danger that the time value of the vehicle will be much lower due to minor damage to the paintwork or even after a traffic accident and the loan volume can not be repaid in full despite the return of the car.
Increasingly, credit institutions that sell their loans over the Internet also offer end-of-term financing, as they are in high demand among vehicle buyers. This form of financing now makes it possible to obtain alternative offers from direct banks and to compare them with the offers of the automobile banks. 2. Borrowers can then simply calculate their desired loan volume on the home computer and receive individual financing by specifying the purchase amount, advance payment and terms.
Car loan with or without final installment?
Whether one chooses vehicle financing with or without a final installment is difficult to discuss. A vintage car loan, which is repaid in full, is financially much cheaper and therefore less risky. However, the increased monthly rate must be funded from the existing budget.
Especially when there is little change available, the old car is already broken and the new purchase can not take much longer, the last installment financing is a good choice.