Is it still interesting to take out a car loan?

A few months ago, many private lenders cut the price tag of a car loan. But is such a loan interesting today? See http://www.012webtools.com/2020/02/18/bad-credit-car-loan-repayment-calculator-need-car-loans-for-bad-credit-scores/ for a summary

Those who took out a loan during a motor show could enjoy a few advantageous rates. For example, with a private lender, the cheapest lender at that time, you received a rate of 0.89 percent. Since 1 April, the private lender has adjusted the rates upwards. Anyone who now calls on private lender pays 1.29 percent interest.

Nevertheless, the private lender remains the cheapest player in the car loan market.

Private lenders and national lenders complete the top 3.

Private lenders and national lenders complete the top 3.

If you take out a loan for an ecological car with this private lender, you pay interest of 1.3 and 1.35 percent respectively. Striking: those who take out a regular car loan at private lenders online also pay 1.35 percent. If not, you pay 1.55 percent.

When we ignore the green cars, we see that the top 3 looks slightly different. The private lender remains the cheapest lender, but the Retail banking company has to make way for another lender. At Retail banking company, you pay 1.6 percent interest when you take out a loan for a new car.

Save up to 570 dollars

570 dollars

Either way, it remains worthwhile to compare loans. Where you pay 1.29 percent interest with the cheapest player, you put 4.09 percent interest on the table at the private lender, the most expensive player in our comparison. That is more than a triple. Suppose you borrow 10,000 dollars from the private companies over a 48-month period, then you pay 213.83 dollars a month. In total, the private company earns 263.38 dollars from that loan.

A private lender, you pay 225.86 dollars per month. That is 12.03 dollars per month more. But if we look at what the private lender earns from the loan, the difference amounts to 577.44 dollars. Due to the higher interest rate, private lender earns 841.29 dollars on a loan.

Ecological loans

loans money

If we only look at the ecological credits, we see that the difference is much smaller. Just as we have already mentioned above, with a private lender you get the cheapest rate. Although that is only a few basis points less than the most expensive green car loan on the market. With most private lenders you pay 1.35 percent for a green loan. If you opt for a green loan with a lender (1.35%), you pay 214.09 dollars per month, or 26 cents more per month than with a private lender. At the end of the journey, the bank paid 12.48 dollars more to you than to private lenders.

Bear in mind that the rate of your car loan may vary depending on the type of car you choose. Where you usually get a cheaper rate for green cars, the price tag for a second-hand car older than 2 years comes up well. A private lender, for example, you pay 10 percent for such a car.

Also, look at the conditions of your loan. Private lenders, for example, you can borrow up to 120 percent of the value of your car for the purchase of a new car.

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