Germany is still a car country. But not everyone can easily afford their own car. But even for people with a weak credit rating, the prospects for a car loan are not bad at all.
Even the purchase of a small car like the smart can be financed with a loan.
The car is of enormous importance in a country with a large surface area like germany. This is true in private life and even more so in professional life. And therefore almost every adult in this country is dependent on a car. The credit behavior of most germans is exemplary. Those with a poor credit rating are justified in asking themselves whether they can get a car loan at all or whether they have to find other alternatives. Fortunately, there is good news in this respect.
Who has to struggle with a bad credit rating?
Unfortunately, it is often a mystery how banks assess the creditworthiness of potential customers. Sometimes it’s not even a person’s own financial situation or payment history that throws a spanner in the works of a credit application, but simply the fact that the bank follows a scoring model. This means nothing more than that they include the living environment in the credit rating calculation. So if you’re unlucky with your neighbors, it’s not uncommon for you to be left high and dry. However, the group of people who have problems applying for credit does not only include people with negative schufa entries. Many banks also rate the creditworthiness of freelancers, the self-employed, temporary workers and even entire groups of employees as poor per se.
Car loans are easier to obtain than other consumer loans
Since a car loan is not a normal consumer loan, the chances of a loan being approved despite a poor credit rating are relatively good. Why? Quite simple. Unlike a simple consumer loan, which can be used to buy furniture, consumer electronics or a vacation in the south, a car loan is earmarked for a specific purpose. In this way, the financed vehicle serves as collateral for the bank.
If the borrower is unable to service his installments, the bank repossesses the vehicle and can sell it to pay off at least a large part of the outstanding debt, if not all of it. Since the risk for the banks is significantly reduced by the deposited asset, even citizens with a poor credit rating are more likely to get a car loan than a normal consumer loan. . An overview of car loans in spite of schufa shows the different terms and conditions. However, banks often require appropriate partial or fully comprehensive insurance in order to maintain the value of the vehicle.
How do I get my car loan despite a bad credit rating??
Financing usually works either via the house bank or a direct bank. However, the likelihood of success is greater when financing through a car dealership or a car dealer. car bank. This applies in particular if the borrower opts for a low-volume model or. A discontinued model decides to be sold yet. Credit financing ultimately serves to maximize sales.
easier conditions often apply to used cars that have been in the dealership’s yard for a long time or in the case of a high down payment in the range of around 30 percent. For those for whom even this does not work because of a too bad schufa-score, they can still try to get a private loan from friends, acquaintances or relatives.