Buying a used car requires less capital than buying a new one. Some of the used car buyers pay the purchase price from existing credit, while financing is required for other buyers. As with the purchase of a new car, this can be done either through the dealer or through an independent bank.
Used car financing through the dealer
The Autobank does offer a loan through the dealer for the purchase of used cars, but this is only in a few cases associated with conditions as favorable as buying a new car. These special cases mainly concern vehicles of the primarily distributed car brand with day registration. These are formally considered used cars and are cheaper than new cars, but have the same quality as a new vehicle.
The dealer used the corresponding models for a few test drives, so that there was no significant wear and tear. For used vehicles driven by the previous owner over a longer period of time, most vehicle dealers also arrange a car loan via their car banks, regardless of the vehicle brand, the conditions of which, however, often differ only slightly from the loan offers of cheap commercial banks.
Since the excellent used car sales prices mostly no longer serve as a basis for negotiation and dealers also grant larger discounts for used vehicles if they do not take over vehicle financing, borrowing from a commercial bank is worthwhile.
Used car loan from a commercial bank
Whether and under what conditions a commercial bank grants a discounted loan for the used car purchase can be found in the conditions for a car loan. Some commercial banks limit the discounted car loan to new vehicles, but it is more common to limit the vehicle age allowed for the cheap loan. In terms of processing, the credit for buying a used car is no different from a loan for buying a new car.
After the used car purchase, the borrower deposits the registration certificate part II (vehicle letter) with the bank until the loan is repaid and also grants the bank the right to use the financed used vehicle if the loan is not properly serviced. At the same time, the used car buyer undertakes to take out fully comprehensive insurance so that the car is protected against loss due to an accident or theft.
In view of the low purchase price of older used vehicles, an online consumer loan is also possible as a loan for buying used cars. In this case, the vehicle buyer does not have to indicate that he wants to use the loan to buy a used car, because consumer loans are generally granted without the lender asking about the purpose of the loan.
This naturally eliminates the obligation to deposit the registration certificate with the lender. There is also no obligation to take out fully comprehensive insurance for used car financing via an unspecified installment loan, but it is recommended that the contract be taken out so that the lender does not have to continue paying installments for a vehicle that no longer exists after an accident or theft.