Buying a car on credit: Good idea?
Whereas in the past, new cars were often paid for in cash, nowadays customers usually opt for special financing models. These include, for example, buying on credit or leasing. However, it is advisable to Car on credit to buy? In this article, we clarify the answer to this question.
Difference between leasing and credit
Leasing
More and more cars are being leased in Austria. Current statistics show that almost every 3rd vehicle is leased.
In contrast to the classic car purchase (or car purchase via credit), with leasing you are not the owner of the vehicle. The leasing installments are paid so that you can use the car. You pay the depreciation of the car, so to speak.
The monthly costs depend on various factors, e.g. the down payment at the beginning, the additional services (tires, etc.) and the mileage.
Once the leasing contract has expired, you have two options. Either you return the vehicle or you buy it. The price for the purchase is based on the residual value. The lower the monthly installments, the higher the residual value.
Buying a car by leasing is especially suitable for people who always want to drive a new car and do not care if they actually own the vehicle themselves.
Credit
Loans can be taken out for various things (e.g. real estate or cars). Buying a car on credit should be especially important for those who care about property.
If you want to own a car, you can take out a loan. As you then pay the seller the full amount at the time of purchase, higher discounts are possible.
As there are often restrictions with leasing contracts (car must be fully insured, exact mileage limits), buying on credit is also suitable if you are a frequent driver and don't want to spend money on fully comprehensive insurance.
We recommend buying a car on credit, as you usually get better conditions from the dealer and there are no restrictions during the use of the vehicle. In addition, you are the actual owner of the car right from the start (in contrast to leasing).
Where can I find a suitable car loan?
In order to get a good offer for a car loan, you should compare the conditions of different banks and then decide on a provider.
Our Car loan calculator helps you with this: Simply select the loan amount, desired term and planned purpose and click on "Calculate". The calculator then compares the offers of all banks in Austria in an instant and suggests suitable offers.
Example:
You can find more information on the subject of car financing in the article in Süddeutsche Zeitung, for example: Financing the car correctly
