The most important aspect of a car loan is the interest rate. Here is a comparison:

Car Loan yes, but cheap!

Use this loan calculator to find the cheapest car finance in Germany for you:

Minimum requirements for a successful loan application:

Because of the fact that it is constantly queried, you can find the requirements that one must meet at a glance, so that your loan application has a chance for approval:

  • Income: Euros 600 per month
  • Place of residence in Germany
  • Current account in Germany
  • at least 18 years of age
  • Employment as an officer, employee, worker, trainee since 1 month
  • at self-employed persons and freelancers: submit at least 1 income tax assessment, which is not older than 3 years
  • … or retired person.

If you do not fulfill these requirements, then it does not make a sense to proceed with the loan comparison and the subsequent application procedure.

If you fulfill all of the above mentioned requirements, than the recommendation is as follows:

Click through the comparison and then enter your personal data, so that the individual loan offers can be calculated. This is free of charge for you!

Costs only arise after the payment of the loan, because the interest is the price for the borrowed money 😉 But in change, you will drive a beautiful car soon?

Let your loan possibilities be checked now non-bindingly!

= use the comparison tool at the top of this page!

Car loan for used cars or upgrade possible?

You guessed it: car loans are cheaper than instalment credit loans because the car serves as an additional security for the bank.

For the duration of the financing – until the last instalment has been paid – the registration certificate part 2 – Zulassungsbescheinigung (formerly called vehicle registration document – Fahrzeugbrief) would be kept at the bank. If the loan is not repaid, the bank has the right to sell the car in order to pay off the debt.

This is true not only for new cars, but also for used-cars and for upgrading motor vehicles, for example, the conversion to natural gas.

If you are willing to send the registration certificate part 2 for the entire duration to the bank, you can get cheap interest rates for the car loan.

Case study: Upgrading a vehicle, which is not yet fully paid off

The easiest way is to increase the existing car loan. You will have to contact your current financial institution. If this is not possible, you have two alternatives:

  • Select another source of financing, where the registration certificate is not required or
  • You have to wait until the first car loan has been paid off and the bank has returned the registration certificate. Next, you have to get a new car loan for upgrading the vehicle and can deposit the document for security at the new bank.

The registration certificate can only be held at one bank.

Car loan instead of leasing

We recommend a car loan to private individuals as the car belongs to them after the last payment has been made to the bank.

With leasing, you have to return the car after the agreed time and you don’t have anything but perhaps, a high final invoice due to too many kilometers or damage to the car.

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Rating: 4.4/5 (8 votes cast)
Car Loan yes, but cheap!, 4.4 out of 5 based on 8 ratings

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We are the editors. Has this site left questions unanswered? Your questions are our concern. Contact us. Information on the background of DeutschesKonto.org.

30 Responses to “Car Loan yes, but cheap!”

  1. Margie says:

    Hi, do you also help with loans for cars?

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    • Redaktion says:

      This comparison is especially for financing cars. Simply choose the needed amount at the top and then click on “Jetzt vergleichen” (compare now).

      Then, the providers with the lowest interest rates are shown.

      But attention! This is a preview. The calculation of the interest rates with your creditworthiness will only take place, when you have registered and entered your personal data, as well as statements of your income.

      To do this, please click on the button “Weiter” (continue).

      Good luck!

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  2. Thomasz says:

    Hi, I need a loan for buying a vehicle, I work in a German company, but I am a Polish citizen. Is this possible?

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    • Redaktion says:

      This is a very good question!

      The citizenship of the borrower hardly matters. That you work for a German company is advantageous. It is important that you are registered with an address in Germany at the time of loan application. German banks generally only grant loans to people with a place of residence in Germany.

      Good luck with your car financing. 🙂

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  3. Fox says:

    I have an own business since one year. Monthly income is visible in the account. However, I do not have a place of residence, but I only registered the company. Is this enough?

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    • Redaktion says:

      This is not enough for a loan approval in Germany. Almost all banks require that the person officially lives in Germany. So, you need a provable place of residence.

      Self-employed persons only get a loan, if they have their company in Germany since at least 3 years.

      One could bypass this point with a trick: if you find a second borrower, you can state him/her as the borrower 1. Borrower 2 should be the self-employed. Most banks only ask for the profession of the first borrower.
      However, the matter with the place of residence cannot be bypassed. This is really important for German banks!

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  4. Mike says:

    Hello,

    I live in Germany since one year and since three months, I am registered here with my family. The disadvantage is that I have a temporary employment contract and work under a Polish contract. I regularly get the salary to the German account, obviously in Euros. Could I apply for the instalment purchase of a car on this basis?

    Many thanks in advance for your help.

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    • Tanja says:

      This is an exciting question and I can understand that you would like to finance a car now.

      The German employment contracts are most often subject to a “probationary period” of six months, in which you can quit or get fired any day without giving reasons. Banks generally wait until the end of this period before granting a car loan.

      That your employment contract is under Polish law will be okay for most banks – as long as the salary is transferred in Euros to a bank account in Germany. At least 99 percent of all German loan banks require a salary statement before the payment of the loan (an article about a provider of up to Euros 5,000 loan amount is being prepared right now). Is your salary statement in German or Polish language? Just try it 🙂

      Let’s get to the most important issues: the stay and the employment time.

      As a Polish citizen (EU citizen), you have the right to permanently stay in Germany and you already live here since more than a year. This is very good. Important is an address (registered address) in Germany.

      This is advantageous for the creditworthiness check, if it has not been changed too frequently. This information is known by information agencies, like the SCHUFA and similar.

      The 3 months mentioned above are still too short to have a real chance of getting a loan. Therefore, the following suggestion: What is the maximum instalment rate, so that you can continue your life in Germany well and financially safe?

      Please consider expenses for fuel, insurance and later repairs.

      Take this sum and save it. You might even want to set up a savings account and transfer the money there for 3 months.

      This has two advantages:

      • You can find out, if you can deal with the monthly financial burden for the car loan
      • You will have a financial reserve of 3 instalments, if you should face a financial challenge during the loan repayment phase (you know, life is full of surprises!)

      After three months, you have experiences with the instalment and a little saving 🙂 If the desire for a car is as big as today, please come back to this page and use the loan calculator (see above) as an initiation for your car financing. What do you think of that? I wish you a lot of success and that you will soon be driving through Germany with a beautiful car. 🙂

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      • Mike says:

        Thank you for all the information 🙂 The loan instalment is Euros 300 and there are 60 instalments. Since I live here, I save twice as much with my wife and we are living well. I also considered the cost of the use, because I currently have an old car. I believe that Euros 300 is within my maximum budget that I could spare for instalments. Soon, I will also receive a monthly child allowance and this amount will almost cover the whole amount of the loan. Additionally, I will receive Euros 2000 repayment of child allowance. My address is new since the first of August, because I worked here before and I was registered together with other employees in an apartment. At the moment, I rent my own apartment with my wife and my son. So, should I now just go to the car dealer and discuss everything?
        Thank you in advance for your help.

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        • Tanja says:

          That sounds very good! I am very pleased to hear that you prepared yourself so well!

          There are two ways:

          1. When you buy a new car, you often have a good chance of obtaining financing from the bank (or partner bank) of your car manufacturer. The car company is very interested in the fact that their cars are bought.

          This is called sales financing. In Germany, renown are e.g. the Volkswagen Bank or the Mercedes Benz Bank.

          This has the advantage for the car dealer and the automotive group that they will earn a second time with the financing and you will probably remain loyal to the brand. Especially at leasing. This is one form of financing.

          I personally do not like leasing, because the dependency is the greatest here. The car is not yours, you rent it for a long term and must pay for a whole lot of money for it.

          If the car bank does not finance a loan, this is disadvantageous, because it has made a Schufa-query, which will be seen by other banks.

          There will be a message sent to the Schufa. Finally, the query must state a reason. There are two reasons that are entered as a characteristics:

          – Konditionsanfrage Kredit (condition request loan)
          – Kreditanfrage (loan request)

          The first characteristic is creditworthiness-neutral. This means: someone has queried the terms of a loan. The other characteristic often has a negative impact, when a loan is requested and afterwards, no message is sent to the Schufa that a loan agreement has been concluded.

          Therefore, it looks like that you have applied for a loan, the bank has checked it, but it has not been approved!

          Some German banks use the characteristic “Konditionsanfrage”, some use “Kreditanfrage”, when querying data at the Schufa. This sometimes changes from case to case and from bank to bank. That is why we cannot give general information about the car banks.

          The Schufa is Germany’s largest credit investigation agency. There, almost all loans are entered and before a loan, the bank checks, whether the Schufa knows about the loan advocate.

          The 2nd way is through a loan comparison on the internet, just like Smava. The loan calculator for car financing, which we have integrated on the page for our readers, is from Smava. Here we can provide information, because we know their way of procedures well. 🙂

          If you apply for a loan through Smava, the Schufa is also queried. However, always with the characteristic “Konditionsanfrage” (condition request). So creditworthiness-neutral! This is very important, if there is no loan payment (for whatever reason). You keep your creditworthiness and do not worsen your creditworthiness score!

          Advantageous in Smava is that it
          A) grants own loans (we report on this in one of the next blog articles)
          B) intermediates loans from other banks.

          This works as follows: a loan profile is created from your loan request. This results in a data set. This is used with the current financing parameters of quite a lot of German banks. Smava knows, which bank is interested to finance a certain customer profile and at what interest rate. This, of course, changes constantly, because banks plan the lending. There is a certain loan volume, which the banks would like to give. If this is allocated, it will be difficult to get a loan at the bank. For example, if a bank still has a lot of loan volume for the quarter or year, it could be easier to get a loan there. The loan procedure of Smava knows such information (which we and you do not know – that is extremely advantageous!).

          In the best case, you can get several loan offers via Smava and you can choose the one that suits you best.

          Very advantageous: only with one single creditworthiness query, a lot of banks are inquired! I think that it is currently 60 banks.

          Summary and recommendation:

          If you want to finance a new car, it can make sense to use the bank of the car manufacturer. Often, there are programs with a really good interest rate (so that the cars are sold).

          In the case of used cars, the case is a bit different. This is the secondary market for the car manufacturer. Although, it is interesting for stock keeping, the really important key figures, such as new car sales or registration numbers are only available for new cars.

          If I would personally finance a used car, I would choose the way though the loan calculator (Smava).

          Phew, this became a long description. I hope this explanation helps you with your loan decisions. It was important for me to provide background knowledge, so that you can make the best decision for your situation. Good luck with the loan and with your new car!

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  5. David says:

    What if I already have a loan and want to take another car loan to buy the next car? The first loan was Euros 4,500 for the car. Now, I would need Euros 10,000 for the new car. Is there a realistic chance?

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    • Tanja says:

      This is an interesting question, many thanks!

      There are indeed people, who have several car financing loans parallely! Whether that works, depends on the own creditworthiness and if there is still enough money for the new instalment after deducting all living costs and the existing instalment.

      In any case, the already existing loan has to be stated in the new loan application. As the interest became lower and lower in the past months and years, it can make sense to pay off the existing loan with a new and higher one. However, this depends on the individual situation and at which bank your first loan was granted.

      Probably the easiest is to use the loan calculator above, choose the desired amount and term and then go through the procedure of registration and application. In any case, you should state your already existing loan.

      Then you have to wait and see the result of the digital loan check. As soon as you see it oline, you will find in the upper right a fee-free phone number. This is a good opportunity to speak about the details with a loan consultant. It does not make sense to make this beforehand, because you have to enter your personal data first, so your contact partner can make tangible statements. I wish you all the best.

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  6. Rohit says:

    Hi Tanja,

    I work in Germany and have a Blue Card which is valid for another 20 months. I work on a unlimited/permanent contract.
    Will it be possible for me to get a car loan with a repayment period beyond my visa validity.

    I cannot apply for a permanent residenceship for at least another 1,5 years.

    Thanks,
    Rohit

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    • Tanja says:

      Hi Rohit,

      that depends on the bank! I guess it would be not easy to find a bank which finance this issue. I am honest: We have not so much experience with this constellation. You want try it and give me feedback please, which bank have a open mind for this? That would be great for next readers. Thank you very much!

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  7. Szala says:

    Hi,
    I live together with my family in Germany and I have my own business. Since 2015, I have a regular income and in 2016, I have earned about 25,000. Is this enough to be able to apply for a car loan in the amount of Euros 14,000? I ask you kindly for an answer and thank you beforehand.

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    • Redaktion says:

      We have spoken to the designing engineer of the loan comparison calculator and asked him, how it would look like in your case. For self-employed, it is always a little harder to get a loan – in your case car financing. Especially, when the own business is not even 3 years old.

      However, there are a few providers that finance anyway. Whether it will work with the loan approval depends of further criteria (e.g. general creditworthiness assessment, Schufa). One will only get a secure answer, if one continues with the loan comparison and enters the personal data. From this, the loan offer will be determined. It could be one or many. Or none at all. Then the answer is sure.

      The nice about it: the whole procedure is free of charge and you can complete it within a few minutes.

      We wish you good luck!

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  8. Chris says:

    Hallo!

    Assuming that i have a home in Germany and work in a company for a year now, am i able to get a 50.000 car loan?

    Thank you very much!

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    • Editorial Team says:

      Hello!

      Unfortunately there are no credits granted on the basis of assumptions – but you can get a 100% reliable answer by using the credit calculator and perform the registration process afterwards.

      This also has the advantage for you, that you will be able to see immediately, which interest rate is offered to you. You can still accept or decline the credit offer – or delay it – afterwards. Wishing you much success!

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  9. ChrisQ says:

    I am trying hard to get a car financing together with my girlfriend. However, the bank asks for a guarantor, but all our family members live abroad. Is there a way around this obstacle?

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    • Gregor says:

      Which bank is it? Did the contact to the bank arise through the loan comparison of Smava integrated here?

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  10. Kariel says:

    I work in Germany since 2 years and have a permanent job in a German company. I am also registered here. However, I do not have a German bank account, because I did not need it yet.

    My question is: How long do I have to wait after the account opening, until I could get a car loan?

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    • Gregor says:

      This is a very good question!

      For the loan payment, a bank account in Germany is always a requirement, because the monthly instalments are debited there via debit entry.

      At some banks, it is enough, if an account exists. It does not matter how long or short. It only matters that a DE-IBAN can be stated.

      However, there are also banks in the comparison that require the last bank statement or of the last three months for the income and creditworthiness check.

      Suggestion: you choose your desired loan amount in the loan comparison and follow the application procedure. There, important data has to be stated, so that the calculation can take place.

      Before the loan application can be submitted at a bank, you have a telephone conversation with a loan advisor of Smava in 99 per cent of cases (the advisors are the persons, who make the comparison and then help to organize the corresponding financing).

      In this telephone conversation, you say that you only have a bank account since recently. You can open this account here: https://www.deutscheskonto.org/en/online-account-opening/ immediately online.

      Of course, some banks will be omitted that want to see the older bank statements. It would be important for them that the salary is transferred to the German current account!

      If enough banks remain, where a loan would be possible, then this effort is enough and you do not have to wait. (loan will be granted and paid)

      If this is not the case, then you already have created your user account at Smava and can try again in e.g. three months. You do not even have to state all data again for the loan. It will be saved.

      In the meantime, you open a bank account in Germany, arrange to transfer the salary there and do not spend too much. This way, one can see that you can manage your finances well and have enough financial margin to be able to pay the instalments.

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  11. Adam says:

    Good morning,
    I live and work in Germany since about 2 years and want to take a cash loan in the amount of Euros 35, 000, but I do not have a permanent job contract. My first job contract was 4 months, the second 8 months and in January, I signed a contract for 12 months, however, the next one will be permanent. I live alone in Germany, my wife lives in Poland, our children are already adults. My net income is on average Euros 1,750.

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    • Gregor says:

      Depending on how the loan calculator assesses the own creditworthiness, one can take higher loan amounts even with an average income, because the interest rate is lower.

      In principle, it is the capability of repaying the loan amount relatively free of risk. The lower the interest rate, the higher the loan amount to take.

      If you only want to try out what amount you would receive from a bank, then simply go through the steps of the loan calculator and fill the statements of your personal situation.

      Enter Euros 35,000. Either you get an approval right away that you can take or you will be proposed other amounts. These could even be higher, if your financial capability is assessed as higher.

      For some banks, a permanent employment contract is necessary, for others, a temporary contract is sufficient. Exactly out of this reason, we recommend the above embedded loan calculator. It always knows which banks are looking for what borrowers. This namely changes from time to time. So, you will have multiple chances with only one online form!

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  12. Peter says:

    Hi,

    I’m an EU citizen living and working in the Netherlands. Is there a way to get a loan in Germany to the car I want to buy in Germany as well?

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    • Editorial Team says:

      Hi!

      As far as the financing is concerned, the location of the car purchase does not play a particularly important role. If you live and work in the Netherlands, then please do the financing via a Dutch bank. A German bank could not offer you a good credit from such an initial position.

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  13. Ibrahim says:

    Hi, I have a new job in Germany and I have a work contract from the beginning of this year. I valued the contract 800 Euro. I have a bank account. If I received the salary directly without a transfer to the bank account. Can I apply for a loan worth 10,000 Euro to finance a car?

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    • Editorial Team says:

      Hi.

      Whether you receive your salary via transfer, check or in cash, does not matter for most German banks. What is important is the salary statement, and of course you need to have enough money on the giro account, so the monthly payments can be debited.

      With an income of 800 Euro, financing a car is really cutting it close, since a car also means additional costs. If it works or not, you’ll only find out when you do the comparison above and fill in your personal data. You’ll see the result at the end of the individual calculation, i.e. within 10-15 minutes.

      But in your case, the probability is not very high. Will there be a nice surprise? If you’d like to find out, give it a try. You only need to “invest” 10-15 minutes of your time. Just do not expect too much, please. A car with 800 Euro monthly really is difficult.

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  14. Benjamin says:

    Hello, I will like to apply for a car loan to purchase a used car. I am married to an EU citizen and have a residence permit valid until 2020. I am working and have a permanent/unlimited contract and also have a german bank account.

    Will it be possible for me to apply for a car loan with a payment plan beyond the validity of my residence permit?

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    • Editorial Team says:

      Hi! Unfortunately, it’s more than unlikely that you will find any credit institute willing to grant credits with a duration beyond your residence permit. You should be having a greater chance at success when you apply for a loan with a duration that ends before your residence permit does.

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