What role does it play age of a car for the car loan And what else is important for granting a loan?.
The important points in brief
How old can the car be?
Basically, every bank has its own guidelines for granting car loans. The requirements vary accordingly – some banks stop at a vehicle age of 8 years, others at 10 or 12 years. However, the decisive factor is often not so much the age of the vehicle, but rather the value that the vehicle is expected to have at the time of the last installment payment.
Vehicle value at the end of the contract period
In the case of a car loan, the vehicle title is handed over to the bank so that the bank can sell the vehicle if the borrower no longer pays the loan installments. The vehicle therefore represents a security for the bank. If the vehicle is now only worth a few hundred euros, however, the bank is left with the outstanding loan installments.
Example A: VW golf, 10 years old
So for a standard VW golf that is 10 years old, three or four years later the vehicle may only be worth around 1.000 euro is worth. If, however, the vehicle is still worth, say, 1.500 euros in outstanding loan installments, the bank is left with a portion of the costs. If you now take into account the effort involved in selling a car, the bank is undoubtedly making a loss.
Example B: BMW 5 series, 10 years old
A BMW 5 series with a powerful engine and many extras may still have a certain value six years after it was purchased. If the contract period is not too long, the vehicle may still be worth a few thousand euros on the used car market at the time of the last loan installment. In this case, the chances of finding a car loan for a 10 year old vehicle are significantly higher.
- The lower the depreciation, the greater the chance of getting a car loan for an older vehicle.
- And: the shorter the loan term, the more likely the banks are to agree to a car loan for an older vehicle.
If the contract period is short, the vehicle is worth more at the time of the last loan installment than if the contract period is long.
Determining the probable value of the vehicle
The market value is always decisive. And that is based on the used car market. In order to be able to determine – at least very roughly – how much a vehicle will be worth after z. B. 8 years can still be worth, take a look at the current used car offers.
Calculate how old the vehicle you want will be at the end of the loan period and look for (e.g.) a new car. B. Search on an online portal for used vehicles) for a comparable vehicle that has this age today. If your desired vehicle is, for example, a mercedes e-class, t-model with automatic transmission and navigation system, look for comparable vehicles on the used vehicle market that are as old today as your desired vehicle will be at the end of the contract. This gives you a rough guideline value – a guideline value that is also determined in this way by the banks.
Whether the example vehicle you have chosen for this value calculation corresponds to the example vehicle chosen by the bank is not certain. therefore, try to choose the comparison vehicle as realistically as possible.
Installment loan as an alternative
If the vehicle is too old for a car loan, there is still the option of applying for a classic installment loan. Here you will also find many favorable offers for an online loan.
An installment credit without earmarking is always more expensive than a car loan. A car loan is financing with earmarking, in which the object of financing (i.e. the vehicle) is deposited with the bank as collateral. In an emergency, the bank can sell the vehicle and thus has a significantly lower risk that costs remain unpaid. This lower risk is "rewarded" by the banks with more favorable conditions, often with lower monthly installments. The risk for the bank is greater with a loan that is not earmarked for a specific purpose – the interest rates are generally higher because the bank wants to be paid for the higher risk.
It applies therefore: car buyers should always choose a car loan if possible. an installment loan without a fixed purpose should always be the second choice.