If you want to take out a loan for the car, the loan amount and the term are already in the middle of what is customary for a private customer or consumer loan. However, the decision for or against a loan with the borrower itself is somewhat different than the decision for any other loan. The reason for this is that there are very different providers where you can take out the loan for the car. So first think about the different financing options and what the decision for or against one or the other funding depends on.
Marketability and resale value as a decision factor
Many car manufacturers offer new car and used car financing through leasing companies or bank subsidiaries. If you decide for or against one of the offers, you should also consider the question of resale in addition to the interest rate: How sure are you that you want to continue driving the vehicle after the leasing period has expired? Or do you want to drive a sporty vehicle for two or four years?
And you cannot estimate the resale value because you do not know whether the exclusive fast model will be “hip” in two or four years. Then you beat, if you take out the loan for the car from the car manufacturer, so to speak, two birds with one stone: You can get a cheap interest rate and have no risk of both exploiting the vehicle.
The separation of vehicle purchase and financing
On the other hand, financing that comes entirely from the car manufacturer and car dealer also has its advantages. You can find the best financing through a search and comparison on the Internet and when buying a car you can put all your energy and negotiating skills into the dream of your own mobility and individual equipment.
In plain language: You act as a self-confident cash payer and can negotiate unrestrictedly about the special equipment, as well as discounts and price reductions. If you then search a bit on the Internet, you will find current statements by professors who watch the car market and give some comparative figures or average discounts in press articles.
So if you want to take out a loan for the car, you should first determine the useful life and resale and then get the best conditions for yourself.