- Buying a car: One of the most common reasons for credit
A large part of borrowing deals with the purchase of a new vehicle. Strictly speaking, 58 percent of the loans taken out are for this purpose. In concrete terms this means:
- used cars – 32 percent of loans are taken out for the purchase of used cars. However, it is not clear from the statistics whether year-old cars and demonstration cars were also included in the used cars. Since these vehicles are in fact no longer new cars, they should count as used car purchases.
- new car – with 26 percent, new cars represent another major pillar.
Borrowing is understandable when buying a car, because the cost of the purchase cannot usually be covered from your own income or assets. Very few car buyers have actually saved the money, most have to use financing. This is possible in two ways:
- Dealer Financing – All dealers and car dealerships offer their own financing models. It makes sense to look at these at least once, because they can be compared to a loan from a bank. Dealers themselves can often hardly offer any leeway because they have signed preliminary contracts with the car banks. Depending on the car dealership, the group plays an additional role, because it often negotiates with the banks on behalf of the dealer.
- Free car loan – it is easy to find online and even easier to compare. Car loans usually come with very low interest rates because the car is deposited as security. In practice, this means that the car letter is handed over to the bank, which issues it again after the last installment has been paid. If you don’t want this, you have to expect higher interest rates because there is no security.
It is also important to compare the details of car loans. The car letter is one thing, but determining the vehicle is another. For example, some banks contractually prohibit the sale, others allow it generally or after consultation.
- Loans for the kitchen and for furniture
Around 17 percent of the loans are taken out for furniture and the kitchen. This is also understandable, because kitchens in particular quickly run into the thousands. It is not clear from the statistics how high the average loan is in this area and where the lower and upper limits are. However, it can be assumed that the purchases will mostly be in the range from 2,500 euros. Purchases below the sum are also financed, but there are likely to be loans without a specific purpose or simple moving loans. But what should borrowers look out for with these loans?
- get offers – they are necessary when purchasing a kitchen. Without offers, it is not possible to carry out the loan comparison, after all the amount must be known. In addition, it is now clear whether the kitchen retailer also offers financing. The kitchen studios in particular offer their own financing models. Although they are often more expensive than on the open market, it never hurts to include them in the comparison.
- credit comparison – Again, corresponding loans should be compared with each other. Online, the point »kitchen/furniture« can usually already be selected as a purpose.
- collateral – now it depends. In the case of smaller loans, no security is usually required unless the customer’s financial situation gives a special reason. In the case of high-quality kitchens, this can also be used as security.
Of course, not everyone buys a made-to-measure kitchen or a kitchen from the kitchen studio. There are definitely usable kitchen units for less than 1,000 euros. For the first apartment, they are usually completely sufficient. The same goes for buying furniture. Depending on the size of the apartment or your own needs, a total price of less than 2,000 euros is also possible here. Many consumers do not want to take out a loan for such sums, especially since they still have in mind that banks used to only grant loans from at least 2,500 euros. That has changed today – as has the financing option. But should furniture be dealer-financed so that no credit has to be taken out? It depends on:
- A dealer – should all furniture be bought from a single dealer, financing may be an option. However, the conditions must be compared well, also with those of suitable loans.
- Multiple traders – Financing through dealers is now possible, but not advisable. The problem is the confusion. Retailer A pays EUR 20.00 per month and retailer B EUR 30.00 – all with different terms. It’s easy for a rate to slip once and it gets annoying. In addition, many people misjudge these actually small installments. They add up to a sometimes hefty sum, which overall tears a financial hole.
Ultimately, a new facility doesn’t end with furniture. Often there are additional purchases, which in turn are financed in installments. As soon as this is the case, a consumer loan is always recommended. It is cheaper, saves bank fees due to the elimination of multiple bookings, and it can be optimally adapted to your own situation.
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