Car Bank is something like the youngest child in the family of German financial institutions. She succeeded the former Motor Bank Bank, which also had to cease its activities after the German-American conglomerate ended. Unlike the financing of other providers, the car loan from Car Bank is not suitable for every vehicle in general, but is limited to the cars of the parent company that gave it its name.
The variants of a car loan from Motor Bank
The financial institution itself does not speak of a car loan from Car Bank, but prepares three different financing offers. These are the standard financing, the final installment financing and the so-called Plus3 financing. In addition, there are some current financing campaigns that are constantly changing and must therefore be hidden here.
The Car Bank car loan: the standard financing
The standard insurance guarantees the borrower one thing above all: security – both in the calculation basis and in the subsequent payment. In principle, every vehicle from Motor can be purchased with the offer, there is a fixed interest rate guarantee over the entire term. The monthly rates do not change. There is no processing fee for this loan. There is no mileage limit or anything similar for the future mileage of the car. In addition, you can insure the installment payments with insurance, and there is also the so-called complete service package, which you can use to cover maintenance and wear and tear repairs during the credit period.
Car Bank car loan: Plus3 financing
The Plus3 financing gives the borrower the greatest possible freedom of choice. They can decide whether they want to keep their vehicle at the end of the loan agreement, sell it, or return it to the dealership at a guaranteed residual value. The whole system works according to the so-called balloon financing, which provides for a very high closing rate. If you keep your vehicle, you have to pay it, otherwise you get the money from the sale or return to the dealership. To stop the car, Car Bank therefore offers final installment financing.
The Car Bank car loan: The final installment financing
In general, the final installment financing is not only limited to the Plus3 financing, but can be identified immediately when a normal loan agreement is concluded. In this way, standard financing becomes individual financing. In fact, however, it is mainly used in connection with Plus3 financing and should therefore be explained in connection with it. The system is relatively simple: instead of the total amount that the vehicle costs, you only pay part (often 50 percent) of the monthly installments and leave the rest for the final installment.
The monthly burden drops immensely. When it comes to paying the final installment, however, you probably don’t have this money and therefore immediately conclude a new loan contract with which you can pay. Since you replace the old loan with the new money, you do not have two loans at the same time, which is why there are no problems with the Schufa entry or the bank. The dark side: This is how you pay for a car for ten years or more.