When a new or used car is to be bought, there is usually not only the choice of the right model in the room but also the question of financing. Car loans are particularly popular, bridging the term with small installments and having a large final installment as the last installment.
Balloon financing – as this type of credit is called in professional circles – is so interesting because it does not require a down payment and is the only way of financing for many consumers since they could not normally raise the money for an expensive new car.
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The special thing about such a loan is the lack of down payment. This is postponed to the end of the loan term. The high final rate enables very low rates that do not reduce the monthly budget too much. In addition, the borrower has the opportunity to save the money needed for the final installment in peace. Even though the car is already in use.
In addition to the option of repayment in installments, the Bank loan also offers free special conditions. The credit interest rate is effectively fixed at 4.95% pa regardless of creditworthiness over the entire term. Especially borrowers with a limited income can benefit significantly here.
The special repayment and early repayment of the loan are easily possible. By waiving further processing fees, the borrower can benefit from a transparent loan product.
A car loan with a final installment is particularly interesting if you do not have the necessary capital for a down payment. In addition, the interest rates for this loan option are very low, so you don’t have to spend too much money in your hand.
If you cannot find the money for the final installment, this can be rescheduled. Follow-up financing picks up the sum and divides it into small, handy installments that can then be conveniently paid off again. The only disadvantage: You are still tied to a bank through follow-up financing and have monthly fees that have a negative impact on the available budget.