Buy used cars in installments

You should keep this in mind with used cars

You can read below what you should pay attention to and what requirements are necessary when buying a used car from installments:

• If you are looking for a used cars have decided and do not want to pay in cash, you can make an installment contract with the seller. In other words, you are actually not making the contract with the seller, but with some bank.
• The first thing you should take a look at is the interest rate. When it comes to financing, the interest rates differ by up to 10%, depending on the dealer. It is often done like this: the longer the term, the higher the interest rate.
• The buyer doesn't even notice because the actual rate for the used car is quite low due to the long service life. But if you then calculate what interest has to be paid over the years, then 1% suddenly becomes a lot of money.
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• So don't pay attention so much to a small installment amount as to a small interest rate. Because only if you pay less interest than on your house bank, an installment contract really makes sense. Because why should you pay more than you really need to?


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Buying a car in installments

In order to be eligible for a hire purchase agreement with a used car dealer, you must meet certain requirements. If one of these requirements is not met, this is an exclusion criterion and nothing will come of the installment contract.

• A permanent job is very important if you want to buy your used car in installments. You should have been with your current company for at least 12 months. A steady, regular income is a must for almost all installment contracts.
• In other words, if you are unemployed, you will not get an installment contract to buy a used car. Schufa information is required so that the banks can get an exact picture of your financial situation. In the Schufa information, the banks can see whether you still have other obligations.
• The banks also see whether you are regularly meeting your obligations. If you have a so-called negative Schufa, this is a very clear exclusion criterion. Then you will always be asked for your permanent address. You should not have changed your place of residence or at most one change of residence in the last two years.
• If you have difficulties buying a used car in installments due to the exclusion criteria, there is still the possibility of a guarantor. If you can name a financially strong guarantor who will co-sign the installment contract, buying a used car in installments should still succeed.

If you pay very low interest rates, it can even be advantageous to buy in installments.