With the nowhere-favorable-guarantee you are on the safe side with verivox. If you receive a loan offer from a bank or a credit broker (including other comparison portals) that is more favorable than the most favorable comparable loan offer on verivox, we will reimburse you for the interest rate difference in the form of a one-time payment directly to your account if you conclude the loan via verivox.
Top interest rates with around 40% savings
Verivox customers saved in 2020 with an average 39.7% cheaper eff. annual interest rate on average around 40% interest compared to the average german borrower (annual average eff. annual interest rate 5.82%, calculated from the mtl. average interest rates for consumer installment loans of german banks for new business 2020, source: deutsche bundesbank zinsstatistik of 09.02.2021)
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Verivox is price champion and industry winner
For the fifth time in a row, the daily newspaper DIE WELT and the consulting and analysis company servicevalue have awarded the title of price champion in gold to verivox. This means that verivox will still be the no. 1 provider in 2021. 1 of the comparison portals. In the years 2017 to 2020, verivox has already achieved the best possible status in gold in the overall rating. Behind the broadly based customer survey on price enthusiasm are a total of around 1 million customers. Customer reviews for 3.000 companies and 270 industries.
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Car financing: quick and easy comparison
Anyone who wants to buy a car today, be it a new car or a "young old" one, often resorts to financing. Around two thirds of the vehicles on german roads are financed or leased by third parties. Three options are available for this purpose:
- The classic car loan
- The leasing
- The three-way or. Vario financing
On verivox.De you can compare the costs of these three variants of car financing to find out which form of financing is more suitable for you. In the new car configurator you can compare a leasing offer with a three-way financing, under car loan you will find individual installment loan offers from a variety of banks. In this guide, you will find examples of calculations, advantages and disadvantages for each type of financing.
The car loan
a car loan is a classic installment loan. Some banks offer it as an earmarked loan at better conditions than a credit for free use. The reason for this lies in the collateralization. The borrower assigns the car note to the bank. If he does not repay the loan properly, the bank can resell the car. In the case of financing a new kitchen or a vacation trip, it would not be possible to recycle the car.
In the case of an earmarked car loan, the car "belongs" to the bank in the broadest sense, but the buyer can do with the car as he pleases. This applies to conversions as well as to the choice of repair shop or compliance with inspections. After the last installment, the lessee receives the car title back, the car is now fully owned by the lessee.
With a no-purpose loan, the buyer is even more flexible and can, for example, sell the car privately during the term and purchase a new car. If the customer wants to repay the loan early with the proceeds, the bank can charge an early repayment penalty. But many lenders offer loans with free special repayments or total repayments.
Calculation example: this is how much a car loan costs
For a car worth 35.000 euros, the following costs are incurred at 4% interest and a term of 5 years:
- Rate per month: 643,45 euro
- Total car cost: 38.607 euro
- Total interest paid: 3.607 euros
At the end of the term, the car belongs to the borrower.
Leasing means nothing other than renting. To put it bluntly, this is a long-term rental car. The lessee pays the leasing installments for an agreed period of time. At the end he returns the vehicle. If a purchase option has been agreed, he can also buy it for its residual value. If you make a down payment at the beginning, you usually have to pay lower monthly installments.
Weighing up the advantages and disadvantages of leasing
The advantage of leasing is that the driver uses a new vehicle every three or four years. This will save you from having to repair worn parts over the years.
The disadvantages of leasing are, on the one hand, that the lessor can dictate which workshop the vehicle owner must go to. The vehicle may not be altered in any way, not even in a simple manner. It becomes critical when the lessee wants to hand over the vehicle. In the case of credit financing, the buyer is free to sell the car. Transferring a leasing contract to a third party is almost impossible.
Private and commercial leasing
Leasing rates are increased by the value-added tax, while credit rates are free of value-added tax. Against this background, leasing is predominantly used by companies and self-employed persons for company cars, as it has a better tax impact than the other financing methods.
Residual value and mileage leasing
Some lessees will not have fond memories of the day of return. The leasing rate is based on a calculation of the residual value at the end of the contract term. In the case of mileage leasing, this depends only on the mileage. With residual value leasing, however, the overall impression of the car is decisive. A small spot on the upholstery, traces of the car wash on the paintwork or an interior door handle that is worn out more than average in the eyes of the dealer lead to an additional payment in this case.
Calculation example: leasing costs including tax
For private leasing, the following costs are incurred at 4% interest and a term of 5 years:
- Rate per month: 583,98 euro
- Total cost: 35.039 euro
- Value of the car: 35.000 euro
- Residual value: 10.000 euro
- No down payment
At the end of the term, the lessee returns the car to the dealer. The rates already include 19 percent value added tax. Without tax, the costs of leasing are comparable to those of three-way financing.
The three-way, balloon or. Vario financing
The name of the three-way financing indicates the procedure at the end of the contract period. First, when you buy a car, the dealer calculates the expected residual value of the vehicle at the end of the term and deducts it from the purchase price. The difference – i.e. the expected loss in value – is repaid by the buyer during the term of the contract, but interest is paid on the total purchase price. At first glance, this option stands out because of its low monthly payment. At the end of the term, the borrower now has three options:
- He returns the vehicle to the dealer. This option is only available with the vario or the. Three-way financing. In the less flexible balloon financing, there is only the financing and purchase option.
- He pays the residual value – the final installment – and takes over the car. To finance the purchase of the car, he can also sell the car privately at the same time.
- He takes out another loan to finance the high final installment. In this case the conditions are recalculated.
In the first case, the risk is the same as for leasing. The dealer will meticulously check whether the mileage has been higher than agreed or whether the car has suffered any other depreciation. In this case the final installment increases.
Calculation example: three-way financing
With an interest rate of 4% and a term of 5 years, the following costs are incurred with three-way financing:
- Rate per month: 492,34 euro
- Car costs when exercising the purchase option: 39.540 euro
- Cost without exercising the purchase option: 29.540 euro
- Total interest paid: 4.540 euro
- Value of the car: 35.000 euro
- Residual value: 10.000 euro
- No down payment
At the end of the term, the borrower can return the car or exercise the purchase option. In this case, the residual value of the car is added to the interest paid.
Credit, leasing and 3-way financing: which is better??
For those who can deduct the value added tax, leasing is the most favorable solution in terms of monthly charge. However, it is important to remember that at the end of the contract there is no countervalue.
The classic car loan has higher monthly installments than leasing or three-way financing, but is the most favorable option overall. With the last installment, the buyer has acquired a countervalue without further payments. If you have the car purchase financed by a third party bank instead of the dealer, you can act as a cash payer and negotiate a discount.
Guide: terminating a leasing contract
In the case of leasing, there are only a few options for terminating the contract prematurely.
If you want to finance an expensive car, you can find affordable fully comprehensive insurance here.