Car finance: finance a car with credit or leasing? – stadt-WIEN.at – the independent city portal

Is your old vehicle no longer usable? Have you found your dream car? Your family has grown and you need a bigger car? The cheapest way to get a new car when you don’t have enough cash.
Getting a new car is expensive. According to the DAT report from 2018, the average price for a new car was € 30,250. However, if the purchase of a car is essential without having the necessary cash at once, there are options to lease a car or to pay off the vehicle with a loan.
Which variant of car financing is the best option? That depends on the respective, individual situation. The following should be considered beforehand:
The first question when buying a car should always be: Do I definitely want to be the owner of the car, or do I want to make this decision later. When the car is in the Property of the buyer should be transferred, an installment loan or a cash payment is required. If the car is only to be used, leasing is the more attractive option.
Anyone who has not clarified the question of ownership, or who cannot or does not want to answer before using the car regularly, is with the Three way funding well advised. With this, a decision is only made at the end of the term (similar to certain leasing variants) whether the final installment is paid or the car is handed over to the bank.
ATTENTION: When buying a car on credit, some financial institutions allow the Vehicle registration document (also called: Registration certificate II) as security. The catch: If the car is resold while the financing is in progress, this can become a problem, as some institutions require that the loan be completely redeemed before the registration certificate is issued to the customer.
Own funds are the funds raised by the loan or leasing applicant, i.e. the sum of money that can be paid for the car purchase. The higher the own funds raised, the lower the fall monthly installments, both for leasing and bank loans.
If there is absolutely no or very little equity available, banks also offer the option complete Amount per Credit to be paid off. However, this does not seem advisable, as the individual installments are correspondingly high and the term of the loan is significantly longer.
Tip: Experts recommend calculating the monthly installments so that a maximum of 10 to 15 percent of net income must be raised for car financing.
What many forget; the financing rate alone is not enough. In addition to the monthly payments, there are additional costs such as; Insurance, service / maintenance, parking fees and of course the refueling.
With many leasing offers, however, some of the extra costs path. There are contracts that already include insurance or the annual service (for new vehicles, the first time after 3 years).

Another advantage of leasing over loan financing is the tax deductibility of the Leasing trolleys for companies. However, private consumers cannot deduct the leasing rates for tax purposes.

The dream car could just as quickly turn into a nightmare again. It doesn’t meet your expectations, or is it bigger than you thought and more of an obstacle than a support in the big city?
»With the usual ones in practice Consumer leasing contracts there is no right of withdrawal.
In the case of loan financing, the so-called clears Consumer Credit Act in return one 14-day right of withdrawal a. This possibility of being able to detach yourself from the contracts that may have been concluded is legally only possible with credit agreements, but not with leasing.
As soon as you are clear about the question of ownership, ancillary costs and the right to withdraw, the question now arises: cash purchase, leasing or credit?
Tip: To the Comparability of loan and leasing offers To guarantee for consumers, the financing companies were obliged by consumer credit law to cover the total burden as well as the Indicate the sum of all interest and fees.
The car dealerships welcome cash payments. If it is possible for you (e.g. through a bank loan) the same full amount to put on the table, the dealers will be happy to accommodate you in terms of price and you have a solid argument, the one given List price of the car to renegotiate.
It is important here, should you take out one of the following loans through the dealership itself, this negotiation option is not available. When concluding a contract with The car dealer’s house bank, the list price of the car must be paid.
With leasing, the lessee borrows the vehicle from the leasing company for a monthly fee.
»The most attractive leasing offers
Loans that promise a relatively small rate are both balloon financing and three-way financing. In this case, however, there is a correspondingly large closing rate, but if necessary, the car can also be returned with these forms of financing.
The advantage over classic financing: The customer can take his time with his decision whether he wants to own the car or just use it.
For certain car models, it is mainly the car dealers’ house banks that grant zinsfreie Creditsto drive sales. In this case, however, only the car that is offered by the dealer for zero percent financing can really be financed.
Car loans are offered by all banks, private banks as well as house banks of the dealers themselves. If you take out a car loan, you get it full amount from the bank. The big advantage of the car loan is that the car can be purchased with cash. If you are able to put the full amount on the table right away, the dealers will often accommodate you in terms of price.
Tip: With a little negotiating skills, a given by the car dealer can Discount, also exceed the interest on the financing.
In principle, your own house bank should be the first address when it comes to a loan. Because, since the car is considered security, banks usually offer lower interest rates for a car loan than for a normal installment loan.
Advantages of a loan through your own bank:
An earlier one Repayment of the loan is also possible in most cases if more money flows into the household budget in between.
The car dealer himself will of course be happy to provide you with a car loan or actively support you in financing a vehicle. Lender, you should always consider a financing option via the car dealer, the car bank of the manufacturer of the car brand being offered.
Advantages of financing through the car dealer
Regardless of whether it is a car dealership or a bank, the process of an application is always as follows:
As soon as you have decided on a method of financing, you must submit all the necessary documents.
What documents are required for a car loan?

Before a bank approves the loan, it needs to check your Liquidity and creditworthiness Precise information about yourself and the vehicle to be financed in advance. The documents you need for the loan application may vary from bank to bank. Usually these are the following documents:
Regardless of whether it is a car dealership or a bank, the second step is to check the creditworthiness of the contractor. This means that the bank is trying to gauge how creditworthy the applicant is and what is the probability that the person will be able to repay the loan in the long run.
As soon as the contractor proves to be creditworthy, the contract is drawn up and an appointment for signing is agreed.
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