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Car loan

Big discounts with a MAXDA car loan

The car loan from MAXDA for new cars and used cars: Use our car loan to find the cheapest financing for your vehicle. This way you can appear as a cash buyer at the dealer and expect substantial discounts!

Dealer financing offers and terms are often not very flexible or tied to specific models. The MAXDA car loan is individual, quick to apply for and offers real monetary advantages for car buyers:

The affordable MAXDA car loan:

• low interest rates for your vehicle loan
• fast loan approval through MAXDA
• appear as a cash buyer and secure discounts
• free choice of insurer
• the Kfz-Brief remains in your possession
• processing of your car loan request also on weekends

Many car buyers who find their dream car at their trusted dealer today use the option of taking out a loan for the car. That way it is not necessary to pay for the car out of savings. The vehicle can be financed in monthly installments. The installment amount for a car loan depends on the chosen contract term, which can be agreed individually for the financing.

Your car loan from MAXDA

Fast & easy to your next car

The car is still a symbol of mobility in this country. Especially in rural areas, people often still rely on their own car to commute to work and buy everyday necessities. But few can simply afford a new or used car from their own assets or income. With an attractive car loan and good terms, it is possible in most cases today to finance the purchase of a car without difficulty. If you are also looking for an affordable car loan, take a closer look at our offer! We provide you with a car financing solution with tailored features and a customized loan amount at truly favorable interest rates!

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What is a car loan?

The word car loan colloquially refers to numerous forms of vehicle financing and also to a loan specifically tailored to the car purchase (purpose-bound installment loan). Fundamentally, any car loan is about covering the purchase price of a vehicle with external funds and repaying the borrowed sum plus interest within a certain period. Below we present different forms of car loans:

The classic installment loan

Many banks today grant installment loans without a predetermined purpose. These can of course also be used to finance a car. An installment loan is characterized mainly by being repaid in fixed installments. The interest portion decreases with each payment while the principal portion increases accordingly. A repayment schedule for an installment loan on a loan amount of €8,000 would look like this for the first 12 months, for example:

After the first 12 months the interest portion of the repayment has almost halved, so the principal is paid off even faster. This effect occurs because interest only has to be paid on the outstanding balance.

The specialized car loan

A specialized vehicle loan is the classic form of car financing. The borrower takes out a loan from the bank for a new or used car and specifies the intended purpose. Compared to a conventional installment loan, this has some advantages:

Lower interest rates:

Not infrequently, car loans are granted on more favorable terms because the bank knows the purpose of the loan. With the vehicle, an asset is acquired that can serve as collateral in an emergency. This reduces the probability of default and allows for better conditions.

Additional security:

Some car loans are still secured by transfer of title of the Zulassungsbescheinigung II (formerly vehicle title / Kfz-Brief). However, this is only possible with a specialized car loan.
Apart from these peculiarities and the purpose binding, the car loan is structured just like a conventional installment loan. In cooperation with many partner banks, we offer you the opportunity to find a car loan that perfectly suits you and also protects your wallet.

Apart from these peculiarities and the purpose binding, the car loan is structured just like a conventional installment loan. In cooperation with many partner banks, we offer you the opportunity to find a car loan that fully suits your needs and also protects your wallet.

Dealer financing

Another option for vehicle financing is to take out a loan directly through the car dealer. Nowadays almost every dealer works with a captive bank and offers seemingly attractive financing terms when buying a car. Sometimes there are even so-called “0% financings” where no interest is charged at all. Nevertheless, dealer financing does not necessarily have to be cheaper. The following arguments can speak against it:\

• Smaller discounts: Because the cash buyer discount is lost with dealer financing, you can usually negotiate a significantly lower discount overall than with a bank car loan.\
• Model-dependent interest terms: Dealers can advertise certain models with favorable interest rates. For this reason, the really cheap interest rates are mainly offered for relatively expensive models.\

The following example is intended to show what to consider when deciding between dealer financing and a bank car loan:

Dealers often also offer comprehensive vehicle insurance packages with dealer financing. A closer look is recommended here as well, because the insurances offered in this area are not always really cheap.

When should car buyers prefer dealer financing?

Dealer financing is cheaper than a conventional car loan when the interest savings are greater than the cash buyer discount. Therefore, it is important to calculate both options before making a decision. The comparison of loans is the starting point, which is another advantage of the car loan. We also provide you with a loan that offers particularly favorable conditions because we compare individual banks in advance and select the most attractive car financing for you.

Vehicle loan with final installment

A car loan with a final installment is often called balloon financing because a large final payment (balloon) is due at the end of the term. The big advantage is that the borrower pays significantly lower monthly installments during the term than with a conventional car loan. This is because not the entire loan amount is repaid through the installments — a relatively large final installment remains. Normally, a car loan with a final installment can only be concluded through a car dealer and has the following pros and cons:\

Advantages:

• Low monthly burden during the term
• Even more expensive models can be financed this way

Disadvantages:

• Higher interest costs because the final installment is subject to interest for the entire term
• High final installment, which can be easily underestimated
• Risk of taking out another loan with interest costs if the final installment cannot be paid
• Risk that a sale will not generate enough proceeds to cover the final installment\

When is a car loan with a final installment sensible?

Because a car loan with a final installment is almost always more expensive overall than a conventional car loan, it is rather a last resort. Such a contract is only sensible if the borrower cannot otherwise afford the high installments for his desired car. It should be ensured, however, that a larger inflow of funds is expected at the end of the term (maturing fixed-term deposit or available life insurance payout).

Tip: Do you need a new car but can only afford a low monthly rate? In that case, a longer term for your car loan might be an interesting option. We will gladly help you find the best balance between interest costs and installment amount!

Car leasing

Another form of vehicle financing is leasing. Here the car is not purchased but rented for a monthly leasing fee. Leasing has some special features:

Lessee is initially not the owner: The lessee does not become owner of the vehicle but returns it at the end of the term or purchases it then.\

Costs often unclear: The costs of leasing offers are not always easy to determine because there are several cost sources. On the one hand, all lessors charge a monthly lease rate. In addition, a down payment is often required at the beginning of the contract term. Only the combination of these two elements reveals the true cost of leasing.\

Additional costs at the end of the contract: If lessees choose mileage leasing, they are allowed to use the car only for a certain annual mileage. If the mileage is significantly higher, additional charges per kilometer apply. In residual value leasing, the lessee bears the residual value risk. If the car cannot be sold for the agreed residual value at the end, the lessee must pay the difference out of pocket. \

When is car leasing really interesting?

Fundamentally, car leasing is a rather expensive form of financing. You only pay for the use of the car and do not acquire ownership. Although the expenses may initially seem low, lessees also miss out on the residual value of the vehicle at the end of the term. After a few years, a used car could often still be sold for a reasonable price. However, there are situations where leasing can be attractive:

• Business owners can claim the leasing fees as an immediate deductible expense for tax purposes without having to capitalize a new asset.
• Someone who wants to drive a model they could not possibly afford to buy might find leasing a way to do so.

  

Applying for a car loan – how it works

Are you interested in an affordable car loan and want to apply for it easily with the help of experts? If so, you are in the right place — we will find a tailored car financing solution with favorable interest rates for you. Only the following steps are required:\

1. Entering personal data
   
   For a loan request, the bank needs personal data such as your name, date of birth and place of residence. These details, like the desired loan amount, are essential for the loan contract. \
2. Information about employment situation
   
   In the second step, it is important to provide information about your employment status. You should state whether you are employed, have civil servant status or are self-employed. It is also important to describe your regular income and expenses. Only then can it be determined whether the requirements for a car loan can ultimately be met. Creditworthiness must also be sufficient.\
3. Print and sign the loan application
   
   You will receive your loan application from us by email and by post. You must print (email version), sign and return it to us together with some important documents.\
4. Add and send documents
   
   To substantiate your employment information, a current payslip or a pension notice is required. Send all documents to us by post.\
5. Your personal loan advice from MAXDA
   
   We will contact you and together find a car loan whose features are fully tailored to your needs. For this purpose, we use our loan comparison and select the cheapest car loan with the appropriate features from numerous offers.

What is important for a car loan?

Anyone interested in a car loan naturally wants to take it out as cheaply as possible. A car already brings running costs such as fuel, taxes, repairs and insurance. The following questions are therefore particularly important when searching for a car loan:

Which interest rate is decisive when comparing loans?

The market for car loans is large because many banks offer such financing. But how can you identify a cheap car loan? The correct cost measure for a loan is the so-called

effective annual interest rate. This is a legally defined figure that pursuant to §6 of the Price Indication Regulation (PangV) for consumer loans must include the following cost items:\

• The nominal interest rate (pure interest costs) - nominal rate
• Brokerage costs
• Account management fees\

This makes it easy to detect low nominal rates with hidden fees, because the effective annual rate must directly include all mandatory cost items.\

Why is comparing loans so important?

A loan comparison makes it possible to identify the car loan that best matches your needs and also offers particularly favorable terms. The following example shows how much you can save by choosing a cheaper loan:

Do not hesitate to apply for a car loan with us — we also work with a loan comparison across many car loans. This way you save a lot of money overall!

Are extra repayments or full repayment of the car loan before the end of the term possible?

In principle, the legislator has stipulated that consumer loans can be repaid early by way of partial prepayment.

According to §502 paragraph 1 BGB, banks may charge a prepayment penalty for this,

which was limited in amount by §502 paragraph 3 BGB:

• For a remaining term of more than one year, the prepayment penalty may be at most 1% of the prematurely repaid sum.
• For a remaining term of less than one year, the prepayment penalty may be at most 0.5% of the prematurely repaid sum.\

However, many banks today offer free extra repayments, and we therefore mainly arrange car loans with this option. If this is particularly important to you, we can pay special attention to it when choosing the loan!

How quickly is a car loan paid out?

The speed of disbursement for a car loan depends on many factors:\

• Submission of documents (quick submission by the applicant speeds up disbursement)
• Speed of the bank
• Type of application process (with a fully digital application the signature is made using a qualified digital signature – disbursement can be possible after one day)\

As a rule, loan funds are available within 2–7 days (given appropriate creditworthiness). If the money is urgently needed, this should be considered when choosing the bank to obtain a faster disbursement of the full amount.

Do I always have to deposit my Kfz-Brief (Zulassungsbescheinigung II) for a car loan?

Depositing the Zulassungsbescheinigung II with the bank is considered special collateral for a car loan. In the course of a transfer of title as security, the lender becomes the owner of the vehicle during the term, while the borrower may use it. If problems occur with loan repayment, the bank can satisfy its claims from the sale of the vehicle. This, however, poses two major risks for banks:

1. The vehicle could be significantly devalued by damage.
2. The vehicle could be completely destroyed, in which case the security would be lost.\

For this reason, some banks already refrain from transfer of title as security and are satisfied with assignment of wages and salary as security, as with a conventional installment loan. In this case, the bank only needs to be able to prove by invoice that the car loan was used for its intended purpose.

What happens if I can no longer pay the loan?

If loan repayments to the bank stop, good crisis management is especially required. It may be possible to reduce the installment amount (for a fee) or take a one-month payment pause. Some banks also offer free payment breaks or payment adjustments. It is particularly important that borrowers contact the bank as soon as signs of payment difficulties appear. Once two installments have gone unpaid without clarification, many banks terminate the loans. In that case, the loan must be repaid in full at once and, after a grace period, there may even be a negative SCHUFA entry.

Is a residual debt insurance sensible for a car loan?

Even today many banks still offer residual debt insurance when taking out a loan. Naturally, the question arises whether the insurance is actually sensible. Its benefits mainly cover the following areas:

• Assumption of loan repayment in the event of death
• Assumption of loan repayment in the event of unemployment
• Assumption of loan repayment in the event of incapacity to work\

Whether the often quite high costs of a residual debt insurance are worthwhile always depends on two questions:\

1. How likely is an insured event? (the longer the term, the higher the probability)
2. What financial consequences would the insured event have? (the larger the loan amount, the more serious the consequences)\

Thus it depends on the size of the car loan and the length of the term. For small financing of a used car, residual debt insurance is certainly less interesting than for a car loan of €40,000 with a term of 6–7 years. Borrowers should bear in mind that the costs of a residual debt insurance are not included in the effective annual rate but are charged separately.

What are the advantages of taking out a car loan online?

If you are interested in a car loan from a bank, you can choose to go to a local bank or use online offers from various banks. The online option has some invaluable advantages:\

• Comparability:
  Online loans are also easy to compare for car financing. This allows the terms to be reviewed quickly and simply to find the car loan with the lowest interest.\
• Time independence:
  You can apply for a car loan at any time online, so you are no longer bound by bank opening hours. This eliminates the pressure of booking appointments at the bank during working hours.\
• Lower costs:
  An online car loan is generally cheaper than comparable loans from local banks. Online direct banks often do not have to subsidize large branch networks and can therefore offer their car loans more cheaply.\

  

Car loan without SCHUFA

If you already have a negative SCHUFA entry (negative creditworthiness), it is often difficult to obtain a loan at all. With us, however, it is also possible to get a car loan without SCHUFA. Some conditions must be met for this:\

• Net income above €1,150 per month
• Secure employment situation (no fixed-term employment, no self-employment, no probationary period)
• Residence in Germany\

If you meet these requirements, you can also apply with us for a car loan without SCHUFA, which in such cases often represents one of the few possible financing solutions for purchasing a car.

What characterizes a car loan without SCHUFA?

Structurally, a car loan without SCHUFA is a normal purpose-bound installment loan, but it has the special feature that no SCHUFA check is carried out when concluding the loan. In addition, the lender does not report the loan to SCHUFA, so the financing takes place somewhat “under the radar.” Because lenders waive the credit check, a car loan without SCHUFA is often considerably more expensive. Such financing is therefore only of interest when a negative SCHUFA entry makes a conventional car loan impossible.

With MAXDA to an affordable car loan!

A functioning car is still a necessity for many people’s daily lives. If you are among them and are looking for an attractive car loan, you are in the right place. Our experts will help you find a car loan that fully matches your needs and is also unbeatable in terms of cost. Take advantage of the chance for a car financing solution that spares your nerves and your wallet today!

New dream car without cash - with the MAXDA car loan!

Stay independent with a MAXDA car loan. For more than 40 years MAXDA has primarily advised private customers and thus knows all the requirements you place on a car loan.

Cars must adapt to our lives today — not the other way around. While a single person may be satisfied with a small car or a minimal roadster, a small family usually needs an estate car to stow a stroller and more. The flexible MAXDA car loan can be applied for individually and thus fits every automotive life phase.

Those who want to combine the advantages of paying in cash with those of financing should consider a classic car loan from MAXDA. With a disbursed car loan, buyers can appear as cash buyers at the dealer and often negotiate a high cash discount.

Applying for a MAXDA car loan is simple and fast, so there is no long wait for a lending decision. Another advantage is that the car loan is usually very flexible and can be repaid early without problems in most cases.

Who offers car loans?

Who offers car loans?

Many car loans are concluded directly at the dealer, which forwards loan applications straight to the captive banks. Here you can also find special loans specifically for new cars, sometimes even offered at 0% annual interest. These loans are subsidized by the manufacturers who expect higher sales as a result.

In addition to taking out a car loan at the dealer, you can also use alternative loan offers from online specialists like MAXDA that also offer attractive conditions and thus enable affordable financing. A big advantage of these loans is that car buyers are independent of special offers from captive banks, which are often time-limited and apply to certain — often very expensive — models.

The classic car loan

The classic car loan

The car loan is often processed via a classic installment loan, which provides fixed monthly installments and a fixed term. The term is usually agreed between two and six years and forms the basis for calculating the installments. With longer terms the installments are reduced; with shorter terms the monthly installment increases.

The installments for this car loan are calculated so that the loan is completely repaid at the end of the term. Upon payment of the last installment, borrowers become the owners of the vehicle and can sell it or continue to use it as they wish.

Advantages of refinancing

Advantages of refinancing

• Online processing guarantees favorable car loan interest rates
• Appear as a cash buyer at the dealer and receive a discount
• Flexible installments and terms
• MAXDA enables early loan repayment

Applicants must be at least 18 years old to take out a car loan. A stable monthly income is also required to ensure repayment of the loan installments. These requirements are checked on the basis of the loan application submitted online at MAXDA.

If all requirements are met, the requested loan amount can be disbursed and the loan transferred. Often the money from the car loan is available within a few days, so the desired car can be purchased at short notice.

Leasing as an alternative to a car loan?

Some drivers today are no longer interested in owning their own vehicle. They therefore deliberately opt for affordable financing solutions that foresee returning the vehicle at the end of the term. A classic among these financings is leasing. The idea: the customer makes a down payment and commits to paying a monthly lease rate until the end of the term. After that, there is the option to return the vehicle or to buy it at the residual value if desired.

As a rule, lessees return the vehicle and then choose a newer or different model as the next leased vehicle. The tax advantages of leasing are mainly of interest to companies, less so to private individuals.

For private individuals there are newer hybrid forms of leasing. Consumers should carefully consider the effective interest rates and included services. Often a little more comfort is bought with expensive interest. Leasing offers are frequently not worthwhile for private individuals, making the classic installment or car loan a much more attractive alternative.