Used Car – The right financing is becoming more important
The fact that the vast majority of loans are used to finance the purchase of a new vehicle has been around for many years. Now, however, there are again current figures from the first half of 2016, which confirm that there is currently a veritable boom in motor vehicle financing in Germany. From January to June 2016, there were no fewer than 890,000 vehicles financed by a loan.
Increase in vehicle financing by more than 4.5%
The fact that approximately 894,000 purchases of vehicles were financed by a loan in the first half of 2016 represents an increase of 4.6% compared to the same period of the previous year.
The banking association, which reported that the financing of new cars by 4.1% and the financing of used vehicles even increased by 5.0%, informed about this information. First and foremost, the financing boom will benefit ordinary banks, which are increasingly providing special auto loans.
In the first half of the year, loans totaling just under EUR 74 billion were granted to private customers or companies for the purpose of financing motor vehicles. This represents a significant increase of 12.6% compared to the same period of the previous year.
Financing especially for used car buyers more and more important
The fact that new cars are often financed by a loan because of the relatively high purchase prices is well known to the experts. However, the latest figures also show that it is becoming increasingly important, especially for used car purchases, to be able to use the appropriate financing.
One reason is certainly that consumers now prefer to opt for slightly younger and higher-quality models, so that the average purchase price and thus the required financing amount in the past have increased. In addition, on average, consumers drive their cars over a shorter period of time, so that the turnover of used cars has increased significantly in recent years. This is also shown by the latest figures from the first half of 2016.
In the first six months of the year, ownership of used cars in the amount of around 3.7 million units changed throughout Germany. This means that the number of “used” used cars is around two million units higher than the number of new cars registered in the same period.
space Selected loan amount monthly rate offer 1.) 210,678 times 3,000 euros from 37 € to offer 2.) 186,731 times 10,000 euros from 122 € to offer 3.) 106,248 times 1,000 euros from 12 € to offer 4.) 94,578 times 5,000 euros from 61 € to offer 5.) 58,656 times 120,000 euros from € 1,429 to offer 6.) 55,724 times 7,500 euros from 91 € to offer Explanation: So often, the respective loan offer was selected in the last 30 days by our readers. As of: 23.09.2019
Financing via car loan of the bank or dealer
Regardless of whether consumers want to finance a new or used car today, there are always a number of financing options available to choose from. The most frequently chosen financing methods include, on the one hand, installment credit and car loans from banks and, on the other hand, dealer financing.
In turn, these dealer financing transactions are primarily three-way financings (balloon financing), which are increasingly gaining in popularity among consumers. Which financing solution is ultimately the best, is up to every consumer and their personal situation.