More than half of all vehicles on our roads are financed. A high-end car loan is in the interest of many borrowers.
Because of the high closing rate, the other monthly installments are quite low. This brings many benefits.
Final installment loans online – short info
- Final installment loans are usually from car dealers, but do not enjoy a good reputation
- They serve to “artificially” reduce the current rate
- Although compared online credit with closing rate is offered, we advise against
- Apply instead for your car loan with desired rate and longer term
What is a car loan with a high final installment?
A car loan with high final installment is very much offered by car dealerships. Who wants to finance his car or has to, is usually glad, if the rates are very small. Often, one hundred euros per month is enough to finance a new car. The big surprise then waits at the end of the term of the financing.
Because there is the big graduation rate on the program, which can include several thousand euros. As a borrower and car owner you have three options. You can settle the graduation rate with the help of savings. One can tackle a follow-up financing.
Or you can repel the vehicle and pay the completion rate from the proceeds of the sale. Which way should be gone, must be decided individually. The decision must be taken just before the end of the term of the loan. If follow-up financing is required, however, care should be taken to ensure that the credit rating is at a high level.
Otherwise it will be difficult to find suitable loan offers.
How is the high final rate presented?
The high final installment is the last installment the lender gets from the vehicle occupant. Only then is the debt completely paid off and the vehicle officially belongs to the vehicle owner. How high the final installment will be depends on the purchase price of the vehicle. Many donors do not like to talk about the last installment.
They prefer to praise the small low rates that have to be paid in advance. Therefore, it is very important for the borrower that he does not lose sight of this last installment when taking out a high-end car loan.
It says something about how good or less good the donor’s offer really is.
High final rate – benefits
There are some benefits associated with the high closing rate. Thus, people can afford car financing, which actually do not have much financial leeway for costly installments.
Because of the high closing rate in advance many small installments are payable, the monthly burden of the loan is modest. If it is then considered that the vehicle for the final rate can be repelled easily, usually incurred no further costs and a new vehicle can be purchased.
Whether it is a used car or a new car, the interested party must decide for themselves. This is not relevant for the high-end car loan.
High final rate – disadvantages
Disadvantageously, the high closing rate may prove to be the case if the vehicle is to be driven over a longer period of time. Then the money for the final installment must be raised. Either by a new loan, which is then again for several years the monthly companion. Or by saving a lot in advance.
Both variants are reflected negatively in the finances, which give the car loan with high final rate, which is also often referred to as a balloon loan, a negative touch.
Whether planned from the outset or designed as a stopgap solution: it is not always possible to save the amount for the high final installment. A follow-up financing must therefore, in order not to condemn the car loan with high final rate in the last trains to failure. The follow-up financing can be quite different.
On the one hand can be asked directly at the dealership, whether the follow-up financing can be made there. The trader then offers a simple installment loan, which splits the large completion rate into several small monthly installments.
So the purse is spared and the financing does not have to be canceled. On the other hand, there is the possibility to easily accept follow-up financing from any bank. It can be drawn from the full range, since with a good credit rating every loan offer is available. Thus, it can be decided individually which bank should provide the follow-up financing.
With the help of our reference calculator suitable offers can be found.
Car loan with high final installment – contact person
The car loan with a high final installment can also be picked up directly from the dealership or from a bank of trust. The larger selection exists in the banking houses, as these can decide freely with whom to work together.
At the dealership, the offer of the dealer must be used. The scope for your own decisions is thus very limited.
In addition, direct entry through a bank gives the opportunity to decide freely whether a classic high-end car loan should be used or a simple installment loan. The simple installment loan offers the possibility of distributing the loan amount at equal rates.
These are higher than a credit with a graduation rate. However, the refinancing or the saving of the graduation rate need not be considered.
If you decide to go through the banks, you can use our comparison calculator to select the appropriate loan offer. It shows all credit offers that fit the loan amount and the ideas of the borrower.
This must be respected
A good selection is only possible if certain aspects are not lost sight of. For example, for a high-end car loan, it is very important that the monthly installments are adjusted to the creditworthiness of the borrower.
A quick repayment of the debt does not matter if it brings financial disadvantages. Then rather smaller installments than risk over-indebtedness.
It must also be borne in mind that for a car loan with a high final installment, the second part of the authorization always remains with the lender. Namely, the vehicle serves as security, so that it only completely passes into the possession of the vehicle owner, when the debt is settled.
With a conventional installment loan this would not be the case. Other collateral for the loan could also be named here.
As far as they are needed at all. Anyone who has a good credit rating from home does not have to worry about that.