Buying a car with an installment loan: you need to know that!

A car is both a tool and a hobby. You need it on the way to work, to go shopping or to the doctor. But having your own car also stands for freedom and independence. Buying a car, whether new or used, can be a financial burden. With a loan you get exactly that financial boost, which is needed in this situation. With an installment loan, you can determine the purpose yourself. Therefore, you can also use it to buy a vehicle. So nothing stands in the way of your desire for a new car.

This article explains what to look for when choosing a Installment loan for buying a car should pay attention. We show what the requirements are and how a loan works in detail.

Buy a car with an installment loan
Source: Image by pixabay of Jenny

These are the advantages of a car loan at a glance

Before taking out a loan, it is worth different providers to compare. So you can choose the provider that comes closest to your own wishes. More information is available at

With an installment loan, you borrow money from a lender. You then use this money to buy a car. So you are right after the purchase owner of the vehicle and is not tied to long-term conditions as is the case with financing. You can use it however you want and even sell it again.

If you pay the full amount when buying a car, you can get price advantages in many cases. After the purchase, you only have to pay off the installment loan via the monthly installment as planned.

freelancers and the self-employed can partly deduct the loan from the tax. If you need your car to work, you can be self-employed deduct vehicle tax. For employees there is at least the commuter allowance that can be claimed for tax purposes.

What do you have to consider with an installment loan?

An installment loan is a personal loan that is repaid to the lender in monthly installments within a contractually agreed term. Depending on how much money you borrow and how you do on the credit check, the possible ones fall Conditions different. Installment loans can be easily obtained on the Internet find and easily compare. So you have a large selection of offers that can be a good alternative to your own house bank.

Hire purchase car financing

You can also apply online place. This saves you the trip to the branch and a lot of paper. If the loan is approved, the provider pays the money into your own bank account.

What requirements do you have to meet for a loan?

Before applying, you should check the conditions of the provider. Here you should not rush anything and everything read carefully. Usually you have to be of legal age to apply for a loan. The applicant's place of residence and bank account must be in Germany. You need a steady income and you have to prove yourself creditworthy.

Choose the best conditions

The process is clearly defined in the contract. This includes the period over which the loan is to be paid off Loan amount and monthly rate. This rate also includes the interest. Interest is a fee equal to a set percentage of the debt. When the term ends, the loan is repaid. That's why you shouldn't default on the installments.


  • If you want to buy a car, you can use an installment loan as a means of payment. That's how you have to don't save too long or wait for good financing conditions through the dealer. After the purchase, you own the car. Then you only have to worry about repaying the loan – it also beckons tax benefits.
  • In order to find the right loan, you should compare different providers. Which conditions you can get depends on the individual situation and creditworthiness. You can often get a free check to see if you can get a loan.

Are you planning to buy a new car and are you therefore looking for financing? Or should the modified baby and its attachments simply have the best possible insurance? Then ours Credit, financing, leasing, insurance & Co. categories exactly the right place to go for information. And also cheap financing for Accessory parts is there. Is the new one forged wheel, the planned Airride air suspension or the one you want foiling too expensive? Then a little one might help Financing in the process of implementing the modification on the vehicle. And also the topic Leasing or the vehicle sales are not neglected here. Just click through the posts and get the answer to your questions.

Sell ​​car sale contract

Of course, that wasn't the end of it!

tuningblog has countless posts on the topic Credit, financing, leasing, insurance & Co. in stock. Do you want to see them all? Just click HERE and look around. The following is an excerpt from the last contributions from this category:

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