Those who dream of finally owning their own vehicle often cannot avoid going to a bank to take out a loan with which they can pay for the car. This course is so common that the German financial institutions have been offering special auto loans for decades. These are special financings that are tailored precisely to enable the purchase of a car as inexpensively as possible. Many people pay particular attention to the question of whether it is a car loan with a special repayment, but this is the completely wrong question.
A car loan with a special repayment: What is a special repayment?
A car loan with a special repayment is a loan that allows you to repay part or all of the loan amount before the loan agreement expires. The idea behind the special repayment is that, as a person, you can make money as a result of sudden coincidences (inheritance, winning the lottery, profitable business, etc.), which enables you to repay the original loan in order to shake off the monthly payment of the installments can. The question of whether there is a car loan with a special repayment does not arise, at least in the Federal Republic.
The German legislature found the idea of special repayment so good that it stipulates that every German installment loan, which of course includes auto loans, must include the option of special repayment. However, what is not stipulated is the question of whether special repayment is always possible or only at certain times and whether it must be free or may cost fees.
A car loan with special repayment: When does the special repayment make sense?
The special repayment, regardless of whether it applies to a car loan or any other form of loan, is intended to achieve two things in particular: It is intended to bring the borrower a financial advantage and, above all, to improve his creditworthiness. For these reasons, it is only sensible to repay a car loan with a special repayment early if the new loan is cheaper even after including any fees, thus saving the borrower. The Credit Bureau registers that a debt has been paid and there is less new debt, which is why
Is it difficult to repay a car loan with a special repayment?
One could worry about the problem of whether it is not very difficult to obtain a new loan with which one would like to repay the old loan, since the car loan already results in a debt that depresses the Credit Bureau entry. In principle, such fears are unfounded.
The two loans practically never exist at the same time because the new loan is used immediately for the special repayment. Since the bank where you want to take out the new loan, knows about it, lending is also not a problem. If you still have very big concerns, you can take the loan from a foreign bank that does not check the Credit Bureau entry to decide whether to grant the loan, which is why the old loan does not show up and does not cause any problems.