Most consumers have to pay loans. Just think of real estate financing with a long-term mortgage loan. Consumer loans are also often used, for example when the consumer buys a new kitchen. If the requirements for a loan are met, the bank also grants several loans. So there can be a car loan despite the loan.
Nowadays, buying a new or used car is a matter of course in life. Many consumers also need a car to do their job. Before a car loan, the bank will carry out a comprehensive check of the creditworthiness of a customer despite a loan.
In addition to a sufficiently high income, this also includes asking the Credit Bureau, and if negative entries are noted, the bank will reject the loan in most cases. If the Credit Bureau is clean and the customer has a permanent position, a new loan is not a problem.
Generally speaking, despite a loan, a car loan is not a big deal. If the credit rating is correct, the loan is also approved. The customer has several options to finance the car. For example, if he already pays loans, he could reschedule. Debt rescheduling is the combination of several loans so that you only have to pay one installment a month later. In most cases, debt rescheduling brings savings.
If the customer decides to reschedule to finance a car loan despite a loan, he should keep in mind that loans are often subject to notice periods. This could be the case, for example, if no special repayments have been agreed and the bank can calculate a prepayment penalty.
To do this, the customer must know that banks earn on the interest they take on loans. If a loan is rescheduled or redeemed before the end of the loan term, the bank incurs financial damage, which it compensates with a prepayment penalty.
The credit rating
Anyone looking for a car loan despite a loan should keep an eye on their financial situation. The customer should draw up a budget and compare his income with his expenses. So he can see at a glance whether he can still afford an additional rate. The bank will also draw up a plan to assess the creditworthiness of the customer.
If there are enough reserves left, the bank ultimately does not care how much credit the customer has to pay. The credit rating is correct and the loan is approved. But with a car loan, the customer should keep in mind despite the fact that even with a good credit rating, situations can occur that reduce income. Think of an unexpected unemployment, for example because the company has gone bankrupt or a serious illness that leads to disability.
You cannot hedge everything in life, but especially if some loans have to be paid and the financial situation is somewhat tense, it might make sense to hedge the loans with a residual debt insurance. If the customer uses a mortgage loan, he should have taken out life insurance with this loan.
If the car loan is financed through the bank despite the loan, then the vehicle letter will be retained as security. The financing would then be earmarked financing, since the bank has the car as security. One can assume that these loans are somewhat cheaper than a normal installment loan.
Experts advise when a household bill is drawn up and there is a remaining amount not to be used entirely. One speaks of 1/3 of the amount, the rest should be saved.
The loan from the bank
If you buy a new car, you should choose a model that also corresponds to your financial circumstances. This makes it easier to finance a small car than a large car. If the customer can no longer pay the installments, the bank will move in the car that it has as security for the loan. Therefore, the customer should definitely speak to his bank if he notices that the installments due can no longer be paid.
A solution could then be found together. In some cases, two or three installment stops help so that the customer can pay again. The car loan in spite of the loan may be provided as a dedicated loan with an extended loan term, so that the customer has a moderate installment. However, he should consider that the longer the loan term, the more expensive the loan as a whole.
If you only want to use a smaller budget for a car loan despite a loan, you can also choose a good used car. The advantage of this car is easier to finance and there is no longer a loss of installments.
Financing with the dealer
If you prefer to finance your car from a dealer, you can do so. In general, however, the dealer bank has the same requirements as the bank. The customer could even increase his credit rating if he can make a down payment. This reduces the loan amount.
Financing from the dealer can be done as a classic loan, but there is also balloon financing and three-way financing. The latter two types of financing have the special feature that only a small repayment is made during the term. At the end there is the final financing, which can then be paid through another loan.