A good car loan is easy to get and low interest rates currently dominate the credit market. It is therefore no problem to take out a car loan without a letter.
Why this can sometimes be even better than the classic car loans from the car dealer, we show in this report.
Without letter financed – short info
- Freely usable installment credit is usually granted unsecured
- You receive low-interest credit without submitting the car letter
- Compare installment loans online at a glance
- Apply safely and quickly for credit with your good name
Car financing – without it is often not
Car finance is very much in vogue. More than one in three cars would not be on our roads if there was no funding.
Auto financing is offered on a very large scale by car dealerships. They work with banks and try to handle the purchase of a car and its financing in a package.
Many conditions for the borrower does not meet. Because the loans only work if the letter remains with the dealer.
The “letter” is the registration certificate Part II. Also commonly referred to as a vehicle registration document, this is considered security for the financing.
Anyone who wants to sell his vehicle without the letter must expect a nasty awakening. It is also different.
Nobody dictates that the car financing must be done directly through the dealer. It is also quite possible to provide the money needed for financing with the help of a car loan without a vehicle registration.
A car loan without a letter can be obtained in a regular way at many banks and savings banks.
What is a car loan without a letter
A car loan without a letter is a regular installment loan, which in most cases is not earmarked. This means that the bank does not ask for the purpose for the loan and thus the borrower does not have to specify that a vehicle should be purchased.
As a result, the bank does not learn anything about buying a vehicle and can not view it as collateral. The letter remains with the vehicle owner, who in turn can freely decide what happens to the vehicle.
Even if the funding has not been fully repaid.
There are alternatives
Those who want to borrow car loans without a letter but directly as a car loan and not as a free installment loan, can do so even at some banks. Banks such as Dundes Bank, Credither or Eicredit are very customer-friendly and offer car loans even without submitting a vehicle registration document.
However, the borrower must have a decent credit rating. The Credither requires additional a copy of the purchase contract.
However, this is not a problem since this copy is neither security nor involves any special repayment procedures.
Car dealerships work with letter
There are few opportunities for a car loan without a letter, however, in the direct financing of the car dealerships. Even on demand, it is virtually impossible to finance without the letter.
Not even if you have a good credit rating and even a guarantor can be named. The car dealers have set this once and stick to this security.
Therefore, it is advisable to take the car loan without a letter either as a simple installment loan or ask the free banks for financing on a car loan without a letter. The installment loan is of course the easier and faster way.
Many different offers are available, all of which can be checked with the help of our comparison calculator regarding the suitability. Furthermore, the installment loan offers the advantage that not only the vehicle but also other things can be financed with a single loan.
For pure car loan this would not be possible, as this is earmarked.