A car loan is offered by numerous branch or direct banks. Most car dealers also have the right loan offers ready when buying a new or used car. For this reason, the entire offer is often very confusing and difficult to see through by unfamiliar laypersons. In order to find the right car loan here that is optimally tailored to your personal situation, it would be highly advisable to carry out a comparison on the Internet before taking out the loan. In doing so, attention should be paid not only to the nominal, but also to the effective annual interest rate.
Interest and processing fees
The APR is composed of the interest and any processing fees charged by the bank for the application and administration of the car loan. Many banks also offer a car loan without a processing fee. This applies in particular to direct banks, which dispense with an expensive branch network and can at least partially pass on the associated cost savings to their customers. If you want to take out a car loan without a processing fee, you should make sure that the nominal interest rate is not too high. Here, too, a comparison on the Internet can quickly provide clarity.
Requirements for a car loan without a processing fee
A car loan without a processing fee can only be taken out if the customer has a good credit rating. So you should not only have a good and secure income, but also an impeccable private credit checker information. If, after checking all the documents, the bank comes to the conclusion that additional collateral is required, it could, for example, request a guarantor or a co-applicant who is financially strong.
Bank loan or dealer credit
If you would like to take out a car loan without a processing fee from the house bank or another branch or direct bank, the great advantage would be that you could act as a cash payer at your car dealer. This could give him not only significant discounts on the purchase price, but also numerous other benefits. This would not be the case with a dealer loan. In contrast, interest rates are usually significantly lower than with a bank loan. A car loan without a processing fee has to be repaid in equal monthly installments.
This is no different from a car loan, where a processing fee is charged. There is no general answer to whether additional repayments are also possible. For this purpose, separate regulations are made in the loan agreement. A car loan without a processing fee would have the great advantage that there would be no processing fee that would have to be paid back if the loan was repaid early. This would usually always be the case with a car loan with a processing fee.