If you take out a loan from an independent bank to buy a car, you should make sure that free special repayments are possible. Special payments reduce the term of a loan, which affects the remaining debt. Unfortunately there are also banks that do not offer a car loan with a special repayment free of charge.
What else needs to be considered
There is a reason why some banks do not have loans with free special repayments in their program. Paying off a loan early reduces interest income. The financial institutions can pay this loss of interest with a prepayment penalty. If you want to make special payments on your loan, you should find out in advance whether these fees are due. Then an early loan repayment is not worth it in most cases.
Find the right bank with a loan calculator
The consumer should be well informed before applying for a loan. This works best with a loan calculator that works independently and free of charge. There are some online banks on the internet that offer a car loan with a special repayment free of charge.
A car loan is earmarked, which is why the customer saves interest. The second saving is made when you buy the car, because with cash in your pocket the car buyer gets a huge discount from the car dealer. However, if the car is financed through the dealer bank, this advantage does not apply.
Apply for credit online
Anyone applying for a car loan with a special repayment via the Internet will quickly receive an e-mail about the promise of a loan. If there are creditworthiness problems, a loan is usually not approved. As security for the car loan, it can happen that the bank wants to have the vehicle registration document deposited. The borrower is not allowed to sell the car during the loan period. Only after full payment has the borrower been given the vehicle letter again by his bank.
The borrower is also flexible with an Internet car loan. The amount of the installments and the duration can be adjusted to personal circumstances. If creditworthiness is available, the online loan is paid out within seven days. On a voluntary basis, borrowers can choose to be insured against death, unemployment or incapacity to work due to illness. Some banks even take out such insurance.
Negotiate with the branch bank
With a car loan with special repayment, the dream of the dream car can be quickly fulfilled. Anyone contacting their house bank should clarify the point of free special repayments in a personal conversation with the bank advisor. With a little bit of negotiation skills, at least a limited number of free special repayments can be agreed.