How to calculate a car Loan
A car is both desire and necessity for most people. In particular, the Germans are almost fond of their vehicle. More than 55 million cars move on the German roads. On average, every roadworthy person (older than 18, physically able to drive a vehicle) has more than one car. There is nowhere else such a value. When buying the vehicles, the banks are on the side of the Germans and offer special loans. But before you can conclude such contracts, you first have to calculate the appropriate for a car loan.
Correctly calculate a car loan: What exactly is a car loan?
A car loan differs from a normal loan in that it is earmarked. This means you can not spend the money on anything but actually have to buy a new or used vehicle for it. Some banks then require a copy of the vehicle registration document, other financial institutions even want the original after the purchase, which they hand over after the loan has been fully repaid. However, it is not uniformly regulated how far the banks understand this appropriation: While some financial institutions ironically insist on the actual purchase of the car, allow other banks with this money also the conclusion and payment of the first contributions of the necessary insurance.
This is especially true if you can complete this insurance in the house. If you want to calculate your car loan, it is therefore necessary to first determine which benefits this covers and how much money should be taken ideally therefore.
Correctly calculate a car loan: It is important to pay attention to these further details
There are numerous credit calculators on the Internet, either on independent platforms or on the banks’ websites, which deal directly with the car loan, making it possible to directly calculate different variants of the loan for the new vehicle. In general, this tool is very practical and helps you to find out what burdens are to be expected by the car loan, however, such tools hide a problem: If you want to reckon the car loan, it is also important to include possible old debts. This means, if you already pay off a loan, the bank will be particularly interested in the allocation of car loan, how high the monthly installment would be together with the new loan: As a rule of thumb: Ten percent of the monthly income (this corresponds to the savings rate in Germany) can easily be paid as a rate.
Banks only allow more than 20 percent for large earners, but for the most part this is not an issue anyway.
For this reason, if you want to calculate your car loan, you have to pay close attention to the fact that the monthly burden, if there are older loans, will not be too high. However, financial institutions make an exception in the case where the car is demonstrably used to keep or get a job because it serves to strengthen the borrower’s economic capacity.