The bank employee checks the account movements and sets up an overdraft facility if necessary. As for the amount, it depends on the income. As a rule, there can be three net incomes. For example, if the income is 2,000 USD, an overdraft facility of 6,000 USD would be feasible. With this loan amount, a car loan with overdraft facility could certainly be realized. Of course, no new car will be paid for with it, but a used car would be feasible. Visit leaf-eu.org for a summary
Well, a car loan could be financed with overdraft facilities. But why should customers do this? The overdraft facility is very expensive. An interest rate level in the double-digit range must be expected. This means that the overdraft facility can have interest rates well in excess of 14%. That makes it the most expensive loan ever.
Why the overdraft facility as a car loan with overdraft facility?
If there is a fast need for credit, car loan with overdraft facility could be an alternative. The borrower sees a good used car super cheap at the dealer, which can only be had so cheap at very short notice.
The car cannot be paid from financial reserves. The customer decides on short-term financing requirements and can arrange a posting control if he does not have one yet.
A normal loan application takes a few days. The dealer’s offer is not as long as that. The overdraft facility, on the other hand, is often processed with a phone call and can be used immediately. Banks do not require any special collateral for the overdraft facility.
The reason, in the general business conditions, the bank is granted a lien to the customer. However, the borrower should know about the overdraft facility that the bank can terminate or reduce the loan at any time.
Since banks earn money at the interest rate they use for the overdraft facility, they often declare their willingness to allow a high overdraft facility. As mentioned before, up to three net monthly salaries.
Why the installment loan or the special car loan are the better options?
If you cannot access financial reserves, you have to choose a loan. However, borrowers should always keep in mind that overdraft is very expensive. Therefore, it should only be a short-term solution. If he has received the car cheaply and paid with his overdraft facility, he should try to get a normal installment loan.
He can then take the time to find a cheap offer as a car loan with overdraft facility. It is then recommended to carry out a credit comparison. The customer enters the desired loan amount and the term. With one click, he will see the amount of the loan installment. If it still appears too high, the loan rate can be paid by changing the term, usually with a longer one. However, borrowers should make sure that the loan doesn’t have to be paid for too long.
A used car in particular is usually sold again after three or four years. But then the car loan should be paid with overdraft facility. Otherwise, the loan amounts add up, there are increases that can then no longer be paid after a certain time.
The classic installment loan as a car loan with overdraft facility
If the loan comparison has shown a cheap provider, a credit request can be made directly via their website. So the customer will see what his personal interest rate is and whether the loan can even be approved. Banks want to see collateral before lending. In most cases this is sufficient income. It should be above the garnishment exemption limit. It is very important with a bank loan that the credit bureau is clean.
If you have negative entries, you will no longer receive a loan or only with additional loan collateral. In contrast to the overdraft facility, the installment loan is repaid in constant monthly installments. By the way, the disposition can basically be reduced as it suits the customer. However, it is advisable to have him balanced in a maximum of four or five months. Before the borrower applies for an installment loan from a car loan with overdraft facility, he should check his financial position.
How high can the credit rate be?
To determine this, the borrower draws up a budget. All income and expenses are listed. Ideally, the balance sheet shows up with a surplus. However, experts advise against using this surplus entirely as a loan installment.
Some financial reserves should always be put aside. This means that smaller purchases or unforeseen bills can be paid without having to use the overdraft facility or think about a loan straight away.
The car loan from the dealer?
The car that the customer would like to have is at the car dealer. Many car dealers then directly offer suitable financing. It’s easy and convenient. The 0% financing that you often read is usually offered when you buy a new car.
With a bank loan, the buyer could pay the loan amount in cash, causing many traders to offer a discount or discount. Anyone who chooses the loan from the bank from a car loan with overdraft facility should find out the exact loan amount from the dealer.
This reduces the loan amount, which in turn brings savings.
If you finance your car loan with overdraft facilities, you should make sure that you quickly settle this loan. The reason is the high interest rate level, which is usually in the double-digit range.
This is of course much more expensive than an installment loan or a special car loan from the bank. There is no reason not to use the overdraft facility at short notice. Dispo is also a solution if the customer’s credit bureau is negatively affected. The credit bureau is usually not requested for the overdraft facility, especially if it is a long-standing customer.